• FiniteBanjo
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    8 months ago

    There is no correlation between wage increases and inflation. Firms will charge consumers the highest number that they can to reach supply:demand equilibrium already, if they could charge more then they would regardless of how much poor people get paid.

    The actual effect of wage increase is a negative correlation with wealth concentration and a higher money velocity, and in some cases a lower number of jobs, but the good outweighs the bad.

    • ChaoticD@lemmy.world
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      8 months ago

      Do you have a source for these findings? Because the last 20 years I’ve lived through minimum wage increases, each time it led to the increase in the cost of living.

      • FiniteBanjo
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        8 months ago

        Ah yes, all of those federal minimum wage increases in the last 20 years. The many great examples such as the raise to $7.25 in 2009 and also the uh… erm… No, that’s it, actually.

        Then the average Price of Goods fell for the next 3 consecutive years. Also, the inflation rate from 2005-2009 was 13.24% while the rate from 2008-2012 was 8.77% according to that same consumer price index data, you can use a calculator for it HERE.

        So either Wage Increases decrease inflation and cause prices of goods to fall, or it has no measurable effect in the face of many factors which do actually affect those things.

        • ChaoticD@lemmy.world
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          8 months ago

          I’m simply asking for a source and your reaction is to be a dick? Smooth. Also, you’re only referring to the federal wage increase. States have had their own minimum wage increases throughout the years and each time, the cost of goods would rise, causing the boost in minimum wage to fall flat eventually - and that’s what the original guy was referring to.

          • FiniteBanjo
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            8 months ago

            I guess your feelings are more important than logic, reason, and the sources that you specifically asked for. Sorry to upset your volatile emotions, enjoy your willful ignorance by your lonesome.

            • ChaoticD@lemmy.world
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              8 months ago

              I never mentioned anything about my feelings, I asked for a source, and you instead acted like a child about it. The internet doesn’t need more assholes around, so if you’re going to act this way - just don’t bother responding. It’s not hard to just move on. Why are you so against stricter policies being placed on the wealthy to ensure they can’t just hike up prices whenever a wage increase is introduced, anyways? You know what, don’t answer that - you’re a douche. Enjoy your miserable life - it must be a sad life if you have to act like this towards someone looking for answers.