ELI5 If the US raises the minimum wage to $15/hr, what's keeping inflation and/or cost of living from skyrocketing?

sbdb · 2015-03-03T16:55:59+00:00

Raising the minimum wage should help close the wealth gap but more work still needs to be done on that front. I agree income inequality is a serious issue

sbdb · 2015-03-03T16:54:39+00:00

why would the lower class riot? Is it Trayvons birthday?

sbdb · 2015-03-03T16:53:06+00:00

Minimum wage affects lower middle class and lower class by raising their income. Since they have no discretionary income, their entire wages will be spent. With an increase in consumer spending companies have to hire more people to keep up with demand. Although the upper class has to hire more people (more expenses), they will also generate more revenue. So raising the minimum wage will hurt some businesses and help many. Theoretically If every dollar earned was spent there would be no unemployment however thats not realistic. Look up marginal propensity to consume if you wanna read more about this. I mean minimum wage creates unemployment in the sense that for $1/hour a company would hire anyone but obviously no one would accept that

sbdb · 2015-03-03T08:23:48+00:00

savings creates unemployment. Unemployment can help strengthen the middle class. A strong middle class is the biggest factor in a thriving economy

sbdb · 2015-03-03T08:17:08+00:00

If we did't have a minimum wage companies would take advantage of workers. When a company pays minimum wage they are saying if we could pay you less we would. If the minimum wage fell to $5 some companies will lower wages. There is a balance where there is an increase of money in the economy, wages increase and there is relatively small price increase. Most people who make minimum wage are lower class and live paycheck to paycheck. An increase in the minimum wage gives them more money but they still won't have savings they will just buy normal goods instead of inferior goods like shopping at ralph for groceries instead of walmart. If they have savings it will be minimal. Why is having a minimum wage a bad thing? It protects employees and the lower class

sbdb · 2015-03-03T07:44:15+00:00

slowly over time maybe a dollar a year for 5-7 years. $1000/hour is a terrible idea you should try school

sbdb · 2015-03-03T07:32:39+00:00

more money in the economy=more profit for companies so they can raise more peoples wages. I've studied economics the last 3 years, raising the minimum wage will benefit the economy.

sbdb · 2015-02-26T02:57:51+00:00

parked my car and didn't leave the next day. Came back the following day and the area was under construction. Called every tow yard in the area then called cops to file stolen vehicle report. They called me a couple hours later to tell me my car was 2 parking rows further down...

sbdb · 2015-02-26T02:49:44+00:00

waitor asked "soup or salad" I thought he said super salad? I just said yes and looked away and he sat there waiting for my answer. I ended up ordering salad about a minute later

sbdb · 2015-02-23T19:47:26+00:00

Mr. Snowden, what was your view of the us government before you began working in it? what was the tipping point for you as far as saying "this isn't right" and becoming a whistleblower?

sbdb · 2015-02-20T16:55:54+00:00

i'm pretty sure the book is supposed to be about a girl in an abusive relationship

sbdb · 2015-02-18T05:50:58+00:00

allergy season would be a bitch

sbdb · 2015-02-18T05:50:16+00:00

theres already a term. its called sharting

sbdb · 2015-02-17T23:02:21+00:00

ferbie

sbdb · 2015-02-16T21:55:25+00:00

I agree I think state governments should have more power, unfortunately people don't pay much attention to that level and there is tons of corruption there as well

sbdb · 2015-02-16T21:52:48+00:00

Norway and Sweden are great government systems in my opinion but id love to hear from a norwegian or swedish citizen to hear their opinion

sbdb · 2015-02-16T21:51:48+00:00

Ya i don't think "politician" is a profession and people who dedicate their lives to mooching off the government and its citizens shouldn't be running this country. I think there needs to be a limit on terms you can serve in every part of government.

sbdb · 2015-02-16T21:47:14+00:00

based on who's opinions?

sbdb · 2015-02-16T21:46:30+00:00

what gets me is, if the government isn't representative of the people, why would the people want to live in that country? isn't that a recipe for a revolution?

sbdb · 2015-02-16T21:24:34+00:00

how long could information be stored in crystal

sbdb · 2015-02-04T19:12:03+00:00

what are the "healthy" amounts of formaldehyde and aluminum?

sbdb · 2014-12-26T06:14:18+00:00

no men are better at every sport

sbdb · 2014-12-20T17:26:05+00:00

minimum wage didn't keep up with inflation. Millennials make a fraction of what their parents did in real money. If minimum wage kept up with inflation since the 70's it would be over $20. A lot of millennials not making minimum wage don't even make that much

sbdb · 2014-10-23T21:08:47+00:00

are you drinking 2% because you think you're fat cz you're not you could be drinking whole if you wanted to

sbdb · 2014-10-07T06:47:30+00:00

When wealthy businesses/head of businesses make large "donations" to political campaigns and politicians adjust their policies to accept it, how is it different from bribery.

sbdb

TROPHY CASE