| DarkRPGamer007 said: Yes. If minimum wage raises, then so does the price of everything else. Inflation will occur if this happens. |
But iflation has already occurred and it already occurs all the time. You can't create inflation by raising minimum wage.
http://www.usinflationcalculator.com/inflation/current-inflation-rates/
http://en.wikipedia.org/wiki/Inflation
"In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] It can be defined as too much money chasing too few goods. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4]"
"Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.[6]However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like "pushing on a string".[7][8] Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities, as well as to changes in the velocity of money supply measures; in particular the MZM ("Money Zero Maturity") supply velocity.[9][10] However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth."
These two paragraphs from that Wikipedia page should put to rest any claims that raising the minimum wage will increase inflation. The general fact that increasing minimum wage means more money in more peoples pockets meaning job growth in fields where there wasn't any because of an increased demand.
