A pair of progressive Democrats unveiled a bill on Tuesday that would raise the federal minimum wage to $25 per hour, considered the bare minimum a single adult needs to meet the cost of living in much of the US.
The Living Wage For All Act is the first bill to be introduced by the newly sworn-in Rep. Analilia Mejía (D-NJ), who won a special election earlier this month after helping to lead the fight for a $15 minimum wage in her home state of New Jersey.
Without restrictions on rent increases , that’s just going to increase inflation. That’s what always happens.
When minimum wage goes up, every single industry thinks they deserve that extra money.
In a way, driving rampant inflation supported by a rising minimum wage tied to inflation destroys the wealth hoarding of the rich, if it is denominated on dollars. Actually, since most of their wealth isn’t, it destroys the savings of the poor and middle class.
Except most of the wealth is equity which would also rise along with/usually faster than the inflation rate.
They’re not sitting on cash.
Extreme inflation bankrupts a country.
Not that we aren’t already headed there. But still.
In my opinion, this here is far from becoming extreme inflation. Even 100% a year is not extreme, and I don’t think minimum wage tied to median wage will cause more than 10% inflation
But of course, I’m no economist
Yeah it just makes the middle class lose what little savings they have.
Inflation keeps going up anyways. The boring answer is to set it to something reasonable and have it go up 2% every year to keep pace with inflation rather than these big jumps that gets everyone worked up.
Someone else suggested it should be a set percentage of gdp. Not amount. That seems like a good idea too.