RE:RE:RE:RE:RE:RE:RE:RE:RE:10 year US treasury yieldOf course raising the minimum wage is inflationary. If a person gets a raise by say 2.00/hour then one would think that the person who was already at the new wage will demand to get a 2.00/ hour increase as well because why would they settle for minimum wage. Anyway this works its way all the way up the ladder.
Businesses pass the increased cost on to the consumer, inflation.
Don't forget now that everybody makes a little more money that there actual spending power goes down. Consumer prices go up, and the government taxes them more.
People wonder why the unions are asking and getting such big raises, inflation. Of course that new F150 all of sudden some of those models are over 100k. My first house didnt cost that much.
It is just a big circle...........
Kelvin wrote: Yeah Cobalt, too much for me to try to normalize so that we can compare apples to apples. All that I know for sure is that my friends in Ontario said that minimum wage just went up to $16.75 per hour and people are complaining that it's still not enough to make ends meet. Some economists say that wage inflation will trigger even more inflation. Because of the months long time lag between cause and effect when it comes to economics then we'll see I guess.