A question concerning economics & minimum wage

[johnsobas]

SvennoJ said:

Locknuts said:

Ah but up until recently, a lot of money has been leaving the economy as people can buy goods from cheaper markets overseas online (I'm Australian).

Only the Aussie dollar being driven down and the subsequent exchange rate differences have allowed money to remain in Australia for the most part.

So in effect, raising minimum wage -> causes inflation -> lowers exchange rate -> more money remains in (and gets into) the country -> profit?

this is just feeding into the rich getting richer.  More inflation and lower exchange rates (and interest rates for that matter) will dillute people's wages while those with real stocks and other assets will see them increase.  This is what has been happening for decades.  It's a race to the bottom for the poor.  No inflation and a strong currency gives people more purchasing power, high interest rates give everyone a place to put their money to save.  Central banks are doing more to destroy the poor than anything else.