Minimum Wage Hike

[timesjoke]

Let's also talk about costs. I actually had a professor (who didn't teach economics - thank ***) who once said that raising the minimum wage does not cause inflation! That's insane too! Wages are a cost of doing business, just like a raw material. If the cost of anything goes up (buns, lettuce, wages, burgers, special sauce - whatever) McDonalds has to raise the price of the Big Mac to make a profit.

That is a base, rudimentary explantion of inflation.

I completely agree, but I just want to be sure we mention taxes in these discussions of late because as we raise taxes, and we raise other costs of doing business like the minimum wage, that means all prices go up and the poor pay those increased prices too, not just the "rich".

 

[hugo]

I completely agree, but I just want to be sure we mention taxes in these discussions of late because as we raise taxes, and we raise other costs of doing business like the minimum wage, that means all prices go up and the poor pay those increased prices too, not just the "rich".

Yes, under the progressive income tax inflation raises taxes faster than the inflation rate.