raising wages is what allows people to handle inflation - suppressing wages to fight inflation is ass backwards, even if wage growth created some inflation
Comment on Despite Apocalyptic Warnings, California Fast Food Wage Hike Didn’t Kill Jobs
yesman@lemmy.world 3 weeks ago
The idea that raising wages is inflationary is simple, elegant, easy to understand, and wrong.
it’s the biggest econ101 meme and refuses to die no matter how many times it’s been proven wrong.
ChristerMLB@piefed.social 3 weeks ago
42firehawk@fedinsfw.app 3 weeks ago
I even remember in econ101 my professor brought up the basic analysis, then brought up a really cool example of this where the minimum wage changed in one state but not another in two towns right on the border. It was the perfect econ experiment to prove how supply and demand would cause inflation.
The next 5 years saw no change despite a 2 dollar an hour increase on one side only - the two towns maintained equal pricing, and no increase to inflation or pricing compared to the typical rate.
My favorite part was that he managed to be excited about it properly, because it was and is cool science to him when usually economics is trying to analyze how changes happened with way too many variables.