Topic: Is increase in minimum wage a good method to fight inflation? - page 6. (Read 2003 times)

there's no need to debate, all countries have the potential to be affected by inflation and the figure of a leader plays an important role in getting their country out of the possibility of inflation occurring, the us is a strong country but they have a president who doesn't know how to work lol.  currently, there is a lot of unemployment and i continue to monitor that there are many large companies that are laying off their employees, this is what should be avoided, if you increase the minimum wage then entrepreneurs will suffer, they are encouraged to fire and make their employees more efficient, raising the minimum wage is really a bad decision hard, it will never work.

Inflation is a symptom for several things, but it's not necessarily a bad thing, as inflation at reasonable rate is to be expected as it's build into core of our financial system.
Prices have been rising since the start of fiat money, and every fiat money out there is build to have reasonable inflation. You can't or shouldn't really combat that, but you can combat inflation that's got out of control, because that can lead to hyper inflation.

And there will be times when inflationary rates need to be exceptionally high, that's normal in times of crisis, as you can think of it like a fever that needs to be high enough to kill a flu virus, but not the host.
That isn't a perfect analogy for it, but closest i can think of. Inflation is used stimulate the economy, like raising minimum wage as well. Economy is not doing well when people keep hoarding and holding, no matter what hodl meme tells you.

If you haven't already, i suggest you'll read about different kinds of economic systems, like keynesian, austrian, and monetarism. You don't have to invent a wheel again as there are lots of people out there who have already studied this subject.

In inflationary conditions or scenarios, we are really forced to look for additional sources of income if employees do not receive a salary increase adjusted to inflation conditions by their bosses. Because people who still want to work with their usual salary will certainly not be able to survive if inflation conditions continue for a long period of time, so their choice will continue to be looking for other sources of income, even though they feel very forced and difficult.

And if entrepreneurs lose their purchasing power due to inflation, it will also have an effect on the condition of companies that provide goods or products that previously were often purchased by entrepreneurs. So that difficult conditions will also be felt by the company and can result in a reduction in employees along with a reduction in their production capacity due to such conditions. Finally, employees who have lost their jobs have to think about getting another job in order to continue earning income in difficult conditions.

that's right, increasing the minimum wage will not solve the problem because it will have an impact on other things which will make the problem more complex and it will cause inflation to continue and even get worse. what should be done in this case is to make targeted policies to citizens, for example subsidies for basic commodities and supply chains, increasing interest rates, and several other policies that the government can take. because only with well-targeted policies can the problem of inflation be overcome.

This will never work, ever.  Say you own a business and min wage goes up. Where does that extra money come from? You have to increase prices of your products accordingly. Additionally you cut the weak employees and increase the load accordingly on the now higher paid ones. As an employer at this time, break's are going to be precise and no phone time at all.

The best way to fight inflation? Don't elect morons like Biden who print money ad nauseum

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

What happens in our society is that employees always demand salary increases on the grounds that necessities are becoming more expensive. There is indeed a return if employees comply with their wishes, of course product prices are getting higher, as if they are rolling like waves, which will actually increase the inflation that occurs. I think the government has done various things to suppress it, but this is only suppressing it, not stopping the rate of inflation

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

Increase in minimum wage may still not be enough to fight inflation but it could lessen the financial struggles of the employees knowing their purchasing budget has increased a little despite of the increasing prices of basic commodities. Although it cannot totally beat inflation but I think it can still be a lot helpful to those employees who are working hard just to sustain their daily needs.

The government is actually responsible to manage the country's inflation but seeing this current inflation will stay for good, I guess the government can no longer beat this inflation. The best they can do is to increase the minimum wage so that the citizens will lessen the financial pressures as well.

strengthening the currency might be better idea, just try to make the economy more alive through incentives for business even though it seems like government trying to give money to business, but realistically speaking its those business that keep the economy alive, just incentivize with stricter policy that they won't misuse the money instead its to grow the business that might be viable, increasing wage will just become a temporary solution where at no time the purchasing power would plummet again because as we know it if the minimum wage increase price of commodity and food will also increase later on.
so its not truly a good solution, I think the best solution would be incentivizing to keep the economy alive also try to strengthen that currency.

Unfortunately  its not an easy solution that works.  Cost of labor is a cost in the economy like anything else.   Workers can be paid more but also efficiency must increase in order to combat inflation.   If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere.  Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

That's correct. In the long run, employers will lose their purchasing power due to inflation. If their salary is not adjusted to match the inflation rate, they will remain stagnant without any improvement unless they find an additional source of income, which may not be a viable option for many employees. However, during this scenario, they will have no other choice.

The minimum wage must be adjusted to inflation and in many countries demands for increases in the minimum wage often occur every year because workers feel they are not getting paid worth it with their work. I guess it's just a solution that the government and the company that employs you consider - but sometimes they are reluctant to raise it for various reasons.

It doesn't make sense to keep the minimum wage the same when inflation is rising - workers not only want to work to live, they also need financial well-being. In my opinion - increasing the minimum wage is a solution for employees, while the government can think of other solutions to reduce inflation.

It's not strange when the government said the inflation is 10% but actually around 20%, that's because not all items are up more than 20% let's say in my place vegetables are up for 5% and rice up for 1% so the government will say that the inflation will be around 3%. Why we always feel that the inflation from the government is different from the reality because our daily needs are the one got big inflation.

Raising the minimum wage is good when the companies are able to raise their worker's minimum wage if they can't raise their minimum wage some workers will get fired from the company due to a lack of funds to pay the worker, in the end unemployment rate will increase and many people will lose their purchasing power.

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

In several regions and countries, there is currently economic inequality in society, where income is not commensurate with expenditure. In these years, energy and food prices have continued to soar, while people's incomes have remained the same, because there has been no increase in the minimum wage. And this will clearly cause the economic cycle to slow down, because in circumstances like this most people will choose to live frugally and also save, which in the end can cause people's purchasing power to decrease day by day. and we can see for ourselves how currently restaurants, entertainment venues and tourist attractions are starting to lack visitors, even small and medium businesses selling on the side of the road are also being affected because people rarely buy snacks.

To deal with inflation, increasing the minimum wage is one solution, but of course companies will think twice if they have to increase the wages of their workers, considering that the global market is not doing well and is full of uncertainty, meanwhile when a company increases the workers' wages, of course, this will only increase the burden on the company.

I think in the end it will be the same, when the minimum wage rises, people will compete to buy, in the end if an item becomes scarce and prices rise, I don't know the comparison but it won't be much different.
so this step is the same, it just takes a little longer.
inflation will continue to rise no matter what, unless fiat money is eliminated.

If only that's how easy things works, then great but unfortunately not. The most effective way to not default a loan is to not make a loan. It may be hard at first but there must be a way to make money in another way.

We should try and if ever we can't help but to make a loan, we must be sure that we can pay it on time because there are consequences about it, although if we keep thinking about it, it might motivate us to make enough money before our due dates. Raising the minimum wage is a dream of the workers. It may not totally curb the inflation but it helps the people to survive it better, yet it might also bring a negative impact on the company or the economy of a country.

To encounter inflation, an economy must increase the resources to match up with the demand.With this, a country should support agricultural industries of its own to generate more and to avoid scarcity of goods and services. There is just an increase with the prices especially with daily necessities, because of high demand and with low supply. Everything, especially with third world countries, are having soaring market prices. Increasing the wage will indeed help people to cope up with the phenomenon but will not entirely resolve it. It is a matter of finding the root cause; many countries prefer importation of goods than with exportation which is already enough to trigger skyrocketing of marketable needs. Almost all of the countries have industrial aspect, but not all governments of a country prioritizes prevention of such unwanted economic situation.Entrepreneurs will just be a short term aid and owners are the ones which will benefit more. Monetary policy is the only way out of inflation however it will include industrial partnerships to control the ideal and mentioned policy in particularly with inflation. Days keep on getting tougher and rough. With capitalism, more people will indeed have job opportunities but prices of marketable goods will still remain.