Is increase in minimum wage a good method to fight inflation? - page 9.

philipma1957

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Quote from: Chilwell on February 14, 2024, 11:24:05 AM

Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think when we talk about Inflation it covers everybody both government workers and other citizens, increasing minimum wage can never be the solution for inflation, because those that will benefit from minimum wage are only those that are involved in government sector and inflation affect the entire community. The economy of my country is very bad right now they have not talk about minimum wage and already price of things have started pushing up because of the inflation, we will have double high price if minimum wage is implemented and minimum wage only affect workers alone, the statistics of government workers are not up to 25% of the population of the country, so let assume 25% have been taken care of what about the Remaining 75% of the population and they are all involved in paying tax to the government so what do they gain due to high cost of commodities.

raising minimum wage raises prices and makes the top 1% get richer.

so anyone wanting to raise the minimum wage is an enemy of the lower class.

making a disincentive to become super rich is the best way to stop inflation.

but as I said it won’t happen as the super rich have the media locked down.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think when we talk about Inflation it covers everybody both government workers and other citizens, increasing minimum wage can never be the solution for inflation, because those that will benefit from minimum wage are only those that are involved in government sector and inflation affect the entire community. The economy of my country is very bad right now they have not talk about minimum wage and already price of things have started pushing up because of the inflation, we will have double high price if minimum wage is implemented and minimum wage only affect workers alone, the statistics of government workers are not up to 25% of the population of the country, so let assume 25% have been taken care of what about the Remaining 75% of the population and they are all involved in paying tax to the government so what do they gain due to high cost of commodities.

philipma1957

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Think of the top 1 percent. They must be drained of wealth to stop inflation.

Raise taxes on the top 1 percent punish them for excess wealth. They cause inflation as a weapon against the bottom 99 percent.

No more complicated than this.

Of course making the top 1 percent lose wealth no longer happens world wide so the bottom 99 percent suffer.

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An increase in minimum wage would not stop inflation in a particular country, but it would somewhat help workers to survive in a dire economic situation as they now have more money to spend. Increasing minimum wage during a serious economic crisis is similar to handing our palliatives to people, it would not help to stop inflation, but it brings temporary relief to the people.

Fighting inflation is not as easy as just increasing the nations minimum wage, there must be a change in economic policies and the country must work on production, rather than just consumption, local production and export of locally produced goods is one way to better an economy and fight inflation, and thus increase the purchasing power of the people.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It won't resolve completely and it won't last long either. Inflation cannot be fought or avoided because if the level of consumption of goods and services is now decreasing due to fulfilling people needs such as increasing public transportation, they are now complaining because the wheels of the economy are not turning for them because everyone already has their own transportation. then the level of shopping in offline stores is getting quieter, traders are also complaining about the same thing amidst demands to pay rent on time but the level of people purchasing power is massive in the online shopping sector. The unstable economic cycle and if you want to increase the minimum wage will still not have a significant impact if people's habits now start to change.

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Re: Is increase in minimum wage a good method to fight inflation?

Not an economist here, but increasing the minimum wage is one of the solutions to at least lessen the burden on the people that they're experiencing. Prices of goods are increasing, food prices are increasing, prices of commodities are increasing, and prices of all that have prices are increasing.

Inflation will not be removed so I guess we can say that increasing the minimum wage will be the forever solution of the government. Well, this is not a one-stop solution because it also has a cons. Increasing minimum wage means higher expense for those business especially those manufacturing companies who are paying lots of employees. How they will cope up with the increase wages? Increasing the price of their goods which will affect us consumers in the end.

At the end of the day I believe this will be a cycle. Inflation happens, government will increase minimum wage.

Indeed since for having an increase they can catch up with rising prices of basic needs that's why its important for government to became proactive on this issue so that they will make sure that their citizen will never suffer from huge trouble brought up by inflation.

Inflation will not be taken out for this action but at least the worker have enough funds to cover up their needs. Also at current situation where everything need to do action to create another income stream maybe its best for people to find multiple sources of income so that they will not badly hurt once inflation rate rise up again since they have a lot of option to cover up their needs also for sure they will not experience any hunger for taking such good actions.

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Raising the minimum wage to fight inflation is laudable. A sophisticated economic dance, not a simple leap. Businesses pay more for workers when minimum wages rise. The natural reaction? Increase prices to retain margins. That's the problem: this can fuel the inflation we're fighting

It's not all bad, though. A higher minimum wage increases workers' spending power, which can enhance demand for goods and services in moderation. Key word? Moderation. We walk an economic tightrope. The execution is harder than the idea. It demands precision, a profound understanding of the economy, and flexibility to alter policy

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Quote

Re: Is increase in minimum wage a good method to fight inflation?

Not an economist here, but increasing the minimum wage is one of the solutions to at least lessen the burden on the people that they're experiencing. Prices of goods are increasing, food prices are increasing, prices of commodities are increasing, and prices of all that have prices are increasing.

Inflation will not be removed so I guess we can say that increasing the minimum wage will be the forever solution of the government. Well, this is not a one-stop solution because it also has a cons. Increasing minimum wage means higher expense for those business especially those manufacturing companies who are paying lots of employees. How they will cope up with the increase wages? Increasing the price of their goods which will affect us consumers in the end.

At the end of the day I believe this will be a cycle. Inflation happens, government will increase minimum wage.

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Even if they will increase the minimum wage if the inflation has continuously increasing all of the expenses will now goes high no matter what happens due to products and demand into circulation but if you are just a sleeping giant country you can easily manage those higher prices but of course, most of the country doing an import and export so there's a demand and price action hike. Reason id recommend not sleep your money in just in savings instead while having inflation your money getting a good income flow other than your salary so you don't get too much affected with inflation.

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decades ago in previous inflation's. employers didnt want to move the market rate of labour by increasing minimum wages.. which then impacted costs of goods
what they did instead(especially in america) was incentivise recruits/employees with hidden benefits, such as dental care, healthcare and pension matching

this meant the post tax cost of labour stayed low and employers got tax incentives/rebates by offering the benefits. which helped keep the employers costs down thus kept the price of goods down

employees then got free healthcare/dental which cut down their post tax medical costs. so they had more cash to spend on other things...
.. and thats the story of the evolution of the industrialisation of the medical system

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think increasing employee salaries or wages is only useful for helping citizens fight the effects of inflation. And balancing employee needs so that they remain met even in inflationary conditions. Meanwhile, regarding inflation itself, actually increasing employee wages will have no impact at all if it is to overcome inflation itself. Because fighting inflation only has to be done by withdrawing excess money in circulation or increasing the level of productivity of goods needed so that they can still meet everything that consumers need. Because usually inflation is also triggered by the scarcity of a good or commodity. Such as the food crisis and the scarcity of petroleum. So increasing the minimum wage for employees only helps employees survive inflationary conditions but cannot overcome inflation itself.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No it's not, scarcity of goods would be the main factor why inflation always increasing. lots of young people didn't want to dive into the production field because they thought that if they worked on that field they wouldn't get rich fast many young people looked for a way to get rich fast like by gambling, investing, becoming famous, etc. we need a real solution for this and young people should open their eyes that crisis would happen at any time.

You can read this reference: https://www.investopedia.com/articles/markets-economy/090516/what-are-pros-and-cons-raising-minimum-wage.asp

In that article stated "raising the minimum wage believe that higher wages could lead to inflation, make companies less competitive, and result in job losses".

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Increasing the minimum wage can be a double edged sword when it comes to combating inflation. In one way it can provide immediate relief to low paid workers boosting their purchasing power & potentially stimulating demand in the economy. But it can also lead to higher production costs for businesses which may could passed on to consumers via price increases. The effectiveness of minimum wage increases in combating inflation depends on various factors such as the magnitude of the increase, the overall state of the economy & and the specific dynamics of the labor market. It’s important to consider a comprehensive approach that includes other measures to address inflation effectively.

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Why not just make money printing machine work unstoppable and give money for nothing? How they plan increase if minimum wage to help to fight inflation? For employer it is a tiny solution, as he will earn more. For employer, that means more tax amount to pay. And where employer going to take price difference to cover that? Of course from product or service price increase? Which means inflation again.

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Perhaps increasing the wages alone is not the solution. It is one part of the equation, but if it's the only thing that will be controlled, prices of goods will come up fast. Because the means of production is significantly more expensive, producers will have no choice but to increase their prices as well. A controlled inflation is hard to achieve, but if the economic planners are smart enough to spot the signs from a mile away, it is possible and very achievable.

Giving people a lot of money while the said money's value tanks is not a smart way to combat inflation.

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Quote from: Casalania on February 13, 2024, 03:04:16 PM

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

it instead might increase inflation to be more rampant because the worth of money in the perspective of people also decreasing as mentioned by OP but yes it will give relief temporarily but overall its just delaying problem that needs to be focused, the solution would be best if the government could incentivize production on certain thing like food by giving tools and so on so that the price of food gonna decrease or anything out there that are becoming expensive due to inflation because the supply is high.
just basic economic that if the supply vastly surpass the demand it will automatically become cheap enough, by boosting production, certainly it will not make the people working in that sector suffer.
but well, i guess government knows best about what to do but sometime implementation is just hard.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Do you know what an increase in minimum wage does? It increases the prices of goods and services. Increasing mininum wage is not the solution to inflation. Want to know what's better than increasing minimum wage? Having no general minimum wage fixed by the government and instead choose to strengthen labour or union rights so that each industry can negotiate their own minimum wage, which has the effect of allowing people to receive the benefits of their company's growing wealth without having to deal with the increases in price that occur across the board like they do with a federal minimum wage hike. In this way, workers actually have an incentive to make their company successful because their union rep will be able to negotiate them better wages with growth, while also giving them a reason to care about the company's ability to compete on the open market.

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Quote from: Casalania on February 13, 2024, 03:04:16 PM

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

Yes, this may only provide temporary relief for workers in the face of inflation, but if inflation continues and cannot be controlled then this will not have any impact because it is possible that companies will no longer be able to pay their employees and this is really a bad thing. The impact of inflation is not good, so it would be better for the government to think about how to eliminate inflation so that people do not have difficulty meeting their needs.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Raising the minimum wage may only be a temporary solution. Because in the long term this could trigger higher inflation. Inflation must be addressed from the root of the problem. If it is because it is difficult to obtain goods or services from abroad, it would be better to improve and utilize natural resources and the quality of human resources in the country itself. But a faster and more common way today is to increase interest rates, which has also been a proven effective measure to withdraw excess money circulating in the community. Because inflation sometimes also occurs due to an abundance of money supply in the country due to too much printing or something like that. So efforts must be made to reduce the supply of money in circulation slowly. And one of them is by increasing bank interest rates. It's just that the effect is sometimes a recession. But it is a risk that must be taken. Because without taking risks it will still be difficult to overcome high inflation. Because high inflation, if not immediately addressed, could trigger even more severe hyper inflation and could destroy the country's economy itself. Well, this is not very easy and requires a process that takes years.

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Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

As the minimum wage increases, it is also going to make the employers do something to at least take back for that increase and that's through their products or anything they are producing to increase the cost as well. Increasinng minimum wage might not be the solution but it is really one way to at least give us better way of dealing inflation.

Quote from: Spaceman1000$ on February 13, 2024, 06:41:40 AM

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It is one of the good measures but it's not going to be enough if we want to totally triumpant over it. That's why as a minimum earner, we have to expand our skills and make use of our time better to go with another source of income so that we don't rely to our mininum wage whether it's increased or not.

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