Hey retards, if you artificially inflate wages, the cost of living will rise to match the new wage level and everyone will be right back where they started.
Not necessarily. Everyone above the bottom will be brought lower thanks to the devalued currency. The longterm change is the poor stay poor, the middle class become poor, and the rich don't have any noticeable change. That, of course, assumes everyone keeps their jobs.
Devalued currency helps net debtors, harms net creditors -- the latter includes mostly the rich. Except of course that trick only works once in a while, because once the currency starts being devalued, interest rates go up. If you try to chase that, you get hyperinflation.
Increasing minimum wages will temporarily reduce the real cost of living, but asset price inflation will ultimately cause the gap to widen in the long term, especially as the shuttered economy means productivity won't be able to outpace consumer inflation.
The Cantillion effect applies here too. For a very brief period, the cost of living will go down for those still employed. It's just long enough for the workers to feel like they won something, and the information travels through the economy slow enough that they won't realize it's their fault.
For anywhere with a progressive tax system, it also means everyone more quickly reaches the next tax bracket, and therefore pays a higher % of overall tax. When the value of the dollar decreases, which is also likely to happen, it means everyone take home income decreases (in actual value, not dollars) .
Hey retards, if you artificially inflate wages, the cost of living will rise to match the new wage level and everyone will be right back where they started.
women will be most affected, as always.
Yeah. When the the cost of labor rises, the least productive are likely to get axed first.
Then they can enjoy what they voted for.
Spoiler alert: They won't. They never enjoy anything.
Not necessarily. Everyone above the bottom will be brought lower thanks to the devalued currency. The longterm change is the poor stay poor, the middle class become poor, and the rich don't have any noticeable change. That, of course, assumes everyone keeps their jobs.
Devalued currency helps net debtors, harms net creditors -- the latter includes mostly the rich. Except of course that trick only works once in a while, because once the currency starts being devalued, interest rates go up. If you try to chase that, you get hyperinflation.
Increasing minimum wages will temporarily reduce the real cost of living, but asset price inflation will ultimately cause the gap to widen in the long term, especially as the shuttered economy means productivity won't be able to outpace consumer inflation.
It increases the real cost of living, as the things done by minimum wage workers get more expensive or become unavailable,
The Cantillion effect applies here too. For a very brief period, the cost of living will go down for those still employed. It's just long enough for the workers to feel like they won something, and the information travels through the economy slow enough that they won't realize it's their fault.
you expect them to understand actions have consequences and think long term? If so, you really should stop, because they're incapable of it.
Everyone will be worse than where they started because of the massive collapse caused by the inflation destroying most jobs.
Not just inflation as a supply of money issue, but increased demand for assets that they were priced out of before.
For anywhere with a progressive tax system, it also means everyone more quickly reaches the next tax bracket, and therefore pays a higher % of overall tax. When the value of the dollar decreases, which is also likely to happen, it means everyone take home income decreases (in actual value, not dollars) .