So minimum wage is a crock of shit?

says some dude in the internet

@galesteppes Apparently, doubling wages means doubling the price of goods

@galesteppes Dunno. Sometimes I'm sure it's good, and sometimes its shit.

I'm done. I hope Europe burns in hell

so why do prices increase when wages don't <:thronk:441701565607444482>

@galesteppes<:sargoy:382978736053551104> <:sargoy:382978736053551104> <:sargoy:382978736053551104>

But fuck forcing people to pay $15 an hour

That was my question but I'm the retard @galesteppes

They kinda forgot about me.

@EnderOctanus Well to you it's all magic anyways lol

https://www.johnlocke.org/update/the-myth-of-wage-push-inflation/

In the long run yes... putting more money into the system will cause prices to rise.

A) If businesses see that people will have more money, they will rise prices in order to cash in on it

B) As wages rises, demand rises, and naturally the supply will rise to meet this new demand at a higher price equilibrium

C) as wages rises, so does expenses due to employment. Companies need to cover these costs so they raise prices

Nah I just don't think I should take any of you to be reliable sources.

No offense.

I mean this isn't the best place to look for such things so.

So when wages stay stagnant, prices should as well right?

But wait

For fuck sake, this is like saying an increase in the price of milk will cause inflation

Why are prices increasing?

@galesteppes prices can raise due to external forces, such as shortages, Import cost increase etc.... Or due to expected economic upturns or downturns

B is not necessarily true, if I am putting away a third of my pay to save for retirement, I am just gonna put away more money if I get paid more, and retire sooner. Not spend it all.

Generally if people have more money, they are going to spend more of it

Savings will also increase which means banks will invest more as well

Wage prices can also lower if you artificially flood the market with migrants

`The idea that higher wages can cause inflation is simply bad economics. It is part of the same discredited Keynesian analysis that tells us that government budget deficits create economic growth and that increased saving reduces it.`

But budget deficits often create economic growth.

<:thronk:441701565607444482>

Maybe if you squint really hard

Might not be the intent of course.

Ree don't make me type the stuff that's literally in the articles I just posted <:triggered:382980748115968000>

I'm not saying you should spend a lot to make problems better, but the two often go hand in hand.

Eh,

I think it's several stages removed from causation

Stimulus right? Could fail. So shouldn't rely heavily on it. But saying it doesn't happen seems dumb.

Probably creating worse problems than you solve

You create a deficit, then you fuck with interest rates, which makes the economy scramble to build shit, then a lot of people default on debt, and you have to fuck with shit all over again

High taxes will probably get pushed as a result to pay for it

Yeah.

It's keynesian economics, and it stimulates the economy ON ACCIDENT lol

Well. I'm not building a company anytime soon for a reason lol