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Nuvendil on 25 May 2016
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WolfpackN64 said:
Nuvendil said:

The $15 minimum wage is ludicrous. There are only two ends for that plan. The best case is a MASSIVE spike in inflation that will ultimately drag the dollar value so low that the pay increase is completely offset. The worst case is frankly total economic collapse as large companies get lean in order to compensate for the enormous spike in payroll costs and small business in general is completely whipped out. It's another short sited proposal made by people so obsessed with their own, personal, immediate convenience that they can't pause to consider the broader ramifications of what they propose. And flipping burgers should NOT net you $15 an hour buddy.

Wage hikes do not cause inflation. Inflation is caused by the total monetary supply. And sorry, but when the CEO of McDonalds makes over $9200/h, you aren't going to tell me he's worth more than 613x the value of the people who actually perform the basic economic task of McDonalds?

Those specific numbers?  No.  But he is far, far more valuable in what he does.  Running a company that big?  99% of their employees couldn't do that.  Shoot, the vast majority of people in general can't.  Trust me, I've seen average people try to run small businesses and run them right into the ground.  Rarity of the skill required is a major factor in pay.  Anyone can do a standard crew member job.  Few can do a CEO or President's job.  And as I said in my post on the previous page (the really long one :P), all that money he makes is a tiny drop compared to the astronomical rise in payroll costs to pay everyone 15+. 

And no, technically inflation doesn't directly follow from increased wages.  But the practical effects thereof on the average man would occur:  cost of retail goods would go up as would general cost of living.  A $15 minimum wage would constitute an enormous rise in payroll costs for many companies, they must recoup that somewhere and it won't be from the executive salaries like many like to think.  The executives just don't make enough in most cases.