| steven787 said:
That's just not true. The bottom 5% will not cause inflation at the same rate of their wage increase. If everybody received an increase, then inflation would grow close to the same rate but still noot equal because some people would be saving more or investing in resources abroad (basically removing the money from circulation). Flat tax would be disasterous. Minimum ~13520 - 15% = 11492/yr or 221/wk or 957/month before taking out social security. $20,000 - 15%= 17000/yr or 326/wk, 1416/month. $50,000 - 15%= 42500/yr or 817 wk or 3541/month. What happens then. Two things are possible, 1) government doesn't have enough money or 2) the poor can't afford to live. |
Personally, I think inflation is actually a small problem compared to the much worse side effect of youth unemployment ...
For the most part, people who earn the minimum wage (without commissions or tips) are primarily young people between the age of 14 and 24 who have little or no experience; these jobs tend to be quite awful but provide these young people with the necessary experience to get a better job, and quite often provide the income needed to get a higher education. Now, most of these young people are doing jobs which are (realistically) not worth $10 per hour and if the minimum wage is raised many would find themself out of a job.
This can result in the cycle of people being unable to find a job because they have no experience, and being unable to get experience because they can't get a job.
