| hershel_layton said: Bernie Sanders has a goal of making a $15 minimum wage, ranging from librarians to your McDonalds cashiers. I've been thinking about it a lot lately, but wouldn't that cause more harm than good? I'm not exactly the smartest in economics, so please bare with me. If we drastically increase the minimum wage, wouldn't that result into inflation, thus making the wage increase redundant and useless? Again, I'm not the most educated on American economics. I'm still learning about it, so don't be surprised if I have misunderstood this subject. |
Inflation is a complex issue, but to keep it as simple as possible, it is determined by how much money is in the system. Raising the minimum wage does not put any more money into the system, it simply changes who has the money. Instead of McDonald's corporate having it, McDonald's workers have it.
It wouldn't, or shouldn't result in national inflation, but it may lead to companies dependent on minimum wage labor raising their prices. But, on the flip side, more money in the hands of workers could be beneficial as they spend more money on things.
