the argument that wages go up so will inflation therefore the price of all things go up is retarded.
The US has dumped trillions of imaginary dollars into the economy. The dollar is still strong and we didn’t make the dollar go into a state of run away inflation.
Also, looking at wages in other countries and the wages that existed in the US before minimum wage, the whole idea of increasing wages means increased costs due to inflation is stupid. The economic idea behind more dollars = more inflation is rooted in the idea that because our money is backed by gold, having more dollars in circulation means that each dollar is worth less due to the fact that a bullion of gold has to be split more. By increasing the flow of dollars, the value of money goes down therefore the demand for dollars goes down, therefore its inherent value is worth less. But applying that argument as a means to say no to minimum wage is retarded because paying people more money doesn’t mean that there is going to be more money that’s printed.
Yes there will be more money in circulation because industry will grow, but the total number of cash in circulation will actually not go up. Giving people more money to spend through minimum wage will actually have a better net impact on the economy than what naysayers say. naysayers like to bitch about inflation but forget about that idea of money multipliers.
If you look at China and the transition of peasants in the city from poor to middle class, you will see that it happened when people started getting paid more. And with the introduction of minimum wage laws, their middle class has grown exponentially. They went from having TV and cable as a sign of wealth, into owning cars with massive foot space in the rear seat as the ultimate sign of wealth. With the introduction of minimum wage in China, you have American companies making movies with chinks in mind. You have GM making the entire Buick line design its cars with the Chinese market in mind, you have Mercedes Audi and BMW selling only their largest fleet cars in China as well. How do you explain that? Minimum wage has made china a legitimate market in which you can sell products and make money. This wasn’t true 10 years ago
The golden age of capitalism in the US also mirrored what happened in China recently. More people where given more spending money due to minimum wage laws and there was more middle class. If you look at the car industry, it used to be exclusively for rich people. Bently, Rolls, Cadillac, Aston, Mercedes made their cars for rich people and that was the market majority. Ford GM and Chrysler didn’t blow up and become the most important industry in the US until the introduction of minimum wage.
The only problem with minimum wage is investors and managers will always look at wages as the biggest source of profit loss. US manufacturing started shipping jobs overseas when minimum wage was introduced even though they where making a killing due to people having more spending money. And now, you have people saying that the introduction of minimum wage in China has hurt its growth and investors will start looking elsewhere to build factories and they are. Its about maximizing profits
The entire system is based on the idea of 3-5% growth, any less than that is unacceptable and anything that gets in the way of that is bad for the economy. Its why you have all these silly arguments against it. I’ve heard arguments such as, people should adjust to what people make in China, Honduras, etc so that the US can be competitive in manufacturing again. I don’t even know where to start.
Minimum wage is only going to hurt industry such as
fast food
retail
landscaping
logistic packing
are we really going to bitch about how it hurts middle men? LOFL