Raising the minimum wage isn't a panacea - unfortunately. But lLinkling it to inflation makes sense.
Raising the supply of money generally has an inflationary effect on the economy as prices rise to match - but if you have enough people reliant on minimum-wage jobs to make day-to-day end';a meat that raising the minimum wage has an inflationary effect - or your business is so reliant on armies of people living beneasth the minimum wage to function - then perhaps there's something cripplingly wrong with the economy, or your business.
There is something structurally wrong with the economy in either case - and one wonders if this isn't because the externalities of either case are socialised. Society has to pay for the cost of people on povertyline wages, but the company still takes the profits of that. If the entity responsible for the problem is forced to pay towards the cost of the problem in some way, one wonders if having a financial interest in making it go away it might soon do so.
There's also a massive inflationary effect visible from the availability of easy credit. You can see what it did to the Irish economy in the runup to 2008 - credit was so cheap that it caused a runaway on prices, and ended up crippling the next decade. The same thing happened again in the first few months before a new reegulation kicked in that limited the avilability of credit to a multiple of a wage. Needless to say prices levelled off at exactly that regulated point - or thereabouts. (Although the actual rental market is now being crippled by chronic undersupply which means that rental prices are skyrocketing - partly due to AirBnB taking a lot of properties out of the market, and partly due to construction lags)
Raising the supply of money generally has an inflationary effect on the economy as prices rise to match - but if you have enough people reliant on minimum-wage jobs to make day-to-day end';a meat that raising the minimum wage has an inflationary effect - or your business is so reliant on armies of people living beneasth the minimum wage to function - then perhaps there's something cripplingly wrong with the economy, or your business.
There is something structurally wrong with the economy in either case - and one wonders if this isn't because the externalities of either case are socialised. Society has to pay for the cost of people on povertyline wages, but the company still takes the profits of that. If the entity responsible for the problem is forced to pay towards the cost of the problem in some way, one wonders if having a financial interest in making it go away it might soon do so.
There's also a massive inflationary effect visible from the availability of easy credit. You can see what it did to the Irish economy in the runup to 2008 - credit was so cheap that it caused a runaway on prices, and ended up crippling the next decade. The same thing happened again in the first few months before a new reegulation kicked in that limited the avilability of credit to a multiple of a wage. Needless to say prices levelled off at exactly that regulated point - or thereabouts. (Although the actual rental market is now being crippled by chronic undersupply which means that rental prices are skyrocketing - partly due to AirBnB taking a lot of properties out of the market, and partly due to construction lags)
I love the smell of rotaries in the morning. You know one time, I got to work early, before the rush hour. I walked through the empty carpark, I didn't see one bloody Prius or Golf. And that smell, you know that gasoline smell, the whole carpark, smelled like.... ....speed.
One day they're going to ban them.