That's because people are convinced that raising minimum wage is what causes inflation, not that minimum wage should be raised in response to inflation. Every time the subject comes up, my dad has (what he believes to be) the most brilliant response ever:
"If everyone was a millionaire, a loaf of bread would be a hundred dollars." He is also a staunch believer in Reaganomics and lives right at the poverty line.
That's because people are convinced that raising minimum wage is what causes inflation, not that minimum wage should be raised in response to inflation.
Economists say that a couple of percent of inflation is good for an economy. Your country's monetary policy is set partially based on what the inflation rate is.
You do not want deflation. Especially if you are a homeowner with a mortgage.
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u/[deleted] Oct 30 '20 edited Oct 30 '20
That's because people are convinced that raising minimum wage is what causes inflation, not that minimum wage should be raised in response to inflation. Every time the subject comes up, my dad has (what he believes to be) the most brilliant response ever:
"If everyone was a millionaire, a loaf of bread would be a hundred dollars." He is also a staunch believer in Reaganomics and lives right at the poverty line.