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.
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.