So the fact that due to inflation the companies can sell their products for slightly more every year, thus generating greater profits, doesn't enter in to the equation? Why should companies not be forced to reflect inflation in wages? While most companies will give raises appropriately to keep up with the cost of living, not all due, and it is for that reason that we have a minimum wage in the first place.
That's not it at all! Minimum wage INCREASES inflation, because companies have to pay more than the market equilibrium to create and sell their products!
While the minimum wage can help people who are earning 'minimum wage' it means that they can't say 'I'll work this much for this much money' and the employer can't say "I need you to work this much, for this much money" and come to an agreement. The employer then has to pay a person more than they're worth! This means that an employer can hire LESS people, increasing unemployment, and ultimately inflation.
Inflation doesn't create greater profits either! (http://en.wikipedia.org/wiki/Inflation) Inflation is a BAD thing (unless you're borrowing money) - it devalues the profits that you earn! Companies DO reflect inflation in wages, that's what raises are for. It's not for the government to decide what people should be paid.
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While the minimum wage can help people who are earning 'minimum wage' it means that they can't say 'I'll work this much for this much money' and the employer can't say "I need you to work this much, for this much money" and come to an agreement. The employer then has to pay a person more than they're worth! This means that an employer can hire LESS people, increasing unemployment, and ultimately inflation.
Inflation doesn't create greater profits either! (http://en.wikipedia.org/wiki/Inflation) Inflation is a BAD thing (unless you're borrowing money) - it devalues the profits that you earn! Companies DO reflect inflation in wages, that's what raises are for. It's not for the government to decide what people should be paid.
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Doesn't stop you from being right.
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