Paying higher wages doesn't increase inflation.....

Because you're not increasing the money in circulation.

Go ahead and argue against it like a disengenuous pha ggot.

yeah? And I never claimed that so....

Re will crashed when we stop printing money directly into it. No one knows when that will be because our admin won't stand up to the fed for fear of a disaster.

Yeah I did, and they haven't increased I value because they were chitty properties lol

Yeah but if companies pay higher wages isn’t there a chance they increase prices in order to maintain the same margins if they aren’t able to decrease costs in other areas?

I’m not sure how any of this works, economists are ghey and their theories never hold up.

I think my scenario is called cost-push inflation.

that's a big if. Companies price a product based off what a consumer will pay, not off a set profit margin.

Thanks for bringing that up, it's another common misconception.

The media has branded Tru Capitalism as purely only for the corporation but that's not true. Capitalism has two components that must be protected, companies AND consumers. You fuk one you just made an offshoot of socialism srs. Corporatist capitalism is just statist communism. Consumerist capitalism is just hippy ass commune bull****. Capitalism is the balance of both elements, not the antagonistic approach to one or the other.

ok but it decreases the gap between wages for unskilled labor vs skilled labor. As we have seen employers won't feel the pinch to increase compensation for the skilled labor jobs if all the skilled laborers decide to take the unskilled jobs that pay a little bit less.

In addition:
-embodied labour - goods require both labour and capital to produce. When we import goods we are actually importing the overseas labour that went into making those goods - at that price.
-technical substitution - when labour costs rise (for whatever reason) it drives efficient investment in capital (e.g. self-checkouts to replace cashiers)
-profit share ceos vs workers - it’s not the bottom-end workers who are driving up the wage bill, it’s management bonuses
-market clearing wage - minimum wages are “binding” only on those who cannot negotiate better and whose jobs cannot be exported (relative few service industry jobs)

Basically there are a lot of “leakages”

An increase in the minimum wage will have a hugely beneficial impact on a very small portion of the workforce

What of state and federal workers and spending in general? Do you believe states and the federal government increase wages and spending in any manner other than printing more money

not sure what you're getting at. We've lost a quarter of our engineers because they can be an admin for no stress and make two thirds as much. Its not worth the stress and responsibility of engineering when admin jobs are making $50-60k/yr now, and firms wanna pay $75k lmao. I legit just had an interview where I nailed every question and their HR told me I wanted too much...for a senior position...$115k lmao. I see why you would think businesses won't respond but its just that they're reactive instead of proactive. They will not raise wages until they can't find engineers, and postings have sat for long enough for trend setting companies to do anything yet. Truth is, they'll try for more h1b1 visas which is exactly another reason why our workers compete globally yet only have access to local resources.

Every firm I've seen fall behind in engineering pay has failed. Maybe you're right and they can't see writing on the wall, but then they will fail and companies who can grasp this will move forward.You sound like the type of guy to believe in trickle down economics but refuse to believe paying people a larger portion of the existing capitol somehow hurts everyone. Not sure you've made your point. How are you pro gun control AND anti min wage? Its like you hate everyone but billionaires.

The FACT of the matter is paying poor people more gets EXISTING MONEY BACK INTO CIRCULATION.

Our economy is stale. It doesn't matter what the wall st numbers are. They're in line with Quantitative easing which is not good. We have no real economy because the vast amount of resources and wealth is with a LITTERAL HANDFUL OF PEOPLE.

Please understand those points.
Are you forgetting about taxes? lmao Once again not sure what you're trying to say. Are you saying the federal gov't can only afford things by printing more money? If that's the case, that points at the fact the gov't is too large in the first place.

Nope. You’ve misunderstood what I’ve written. In simpler terms:

-Implementing a binding minimum wage is difficult. There are leakages. This is borne out in theory and practice.
-a minimum wage increase won’t be the end of the world like some believe. Benefits will be significant for those affected but contained.
-workers can and should get a higher profit share. Nobody will give it to them. They have to organise and take it.
-not sure where you got trickle down economics from. By contrast everything I wrote can be found in an intro to econ text book. Suggest you read one.
-re: gun control I support keeping guns away from criminals and insane people, which is how it works here. Law abiding citizens can get whatever guns they want.

Listen buddy, I’m on mobile and it zooms into the contents of the response so far that I can’t see the username but when I see your stupid ass emojis I don’t even have to scroll over to see your name

I aint no financial expert but typical "inflation" isn't the issue as far as I'm aware. If you bump up everyone's wages the prices of everything will just increase at a relative rate to balance out the market, like there's no way that wouldn't happen

Getting a head start on your first year economics subject OP?

See post #10

An increase in the minimum wage won’t have the inflationary impact that some would have you believe. The impacts will be fairly confined in the short run and even more so in the medium term.

I'd love to see all wages drop massively and everything just gets cheaper; incinerate trillions. Srs. Back to making $1 an hour but gas is $0.05 per gallon again.

Jason Genova level IQ level

absolutely. Consequently the average person had a higher share of the overall amount of money in the country.

yes then I misread your post. I agree with what you say. I deleted a post where I agreed, but then you stated "it will have a small impact" which I don't believe overall.

Save up a couple thousand dollars
Move to South America or Asia
Live life as a millionaire god
profit

People confuse inflation with purchasing power, which while closely related, are different. People, even in the middle class, don't want "the poors" to have their purchasing power get closer to theirs, and they call that inflation.

Came in for advice on trannies, leaving disappointed

Inflation is the product of both the money supplyandthe velocity of money.

When you hand more money to poorcels, they tend to blow it immediately on necessities like tradie Monsters and Slim Jims, whereas the 1% either sits on it or locks it up in asset markets.

yes they blow it on chit that doesn't matter

they're not "blowing" it on appreciating assets. Paying higher min wage to consumers gets money out of billionaires hands and back into smaller businesses and middle class.

There will be an increase in cost for the items in which there are increased demand, most of which are not categories of goods that affect the middle class.

Which was what r32 was alluding to.

Nah fam.

Nah.

I’m saying that you can legislate a minimum wage, but it won’t have much of any impact on wages outside of low paid service jobs. Which is a relatively small sector of the economy.

Beyond that, manufacturers will outsource production overseas where efficient to do so; or will engage in “technical substitution” to use capital to replace labour.

By the by, the lowest paid workers aren’t the only place to cut the wage bill.

See further Section 1 of Marx K. ‘Das Kapital’

it doesn't do anything except destroy the middle class

it doesn't take money out of billionaire hands because that same increase in wage expense is added back to the product prices.
the only reason billionaires wouldn't add that increase right away is just to bleed out small business owners out further into failing (because most already operate on paper thin profit margins and can't afford to bleed for years like big chains can). then big boys raise the prices back up.