Quote:Several factors cause that kind of inflation. There's no single root cause, and most economists agree on that, no matter what else they disagree on. The minimum wage has little real effect on inflation. Raising minimum wage 40% would not result in a 40% inflation jump for example. In fact it'd be much smaller. And a little inflation is a good thing. The reason minimum wage doesn't cause such a great jump in inflation is because wages aren't really that high a percentage of prices.
Then you have a lot of artificial supply limitations like in the housing market, where they don't put vacant houses on the market. Why? To drive the cost up, of course. Just look at how people go wild for things like Tickle-me-elmo. Or the newest game system, how you can buy 3 of them, and sell the other two to make up the cost.
In an ideal world, companies would pay you what you are worth, not what they want to pay you (which is the least they can get away with, and still have employees).
Why is a little inflation a good thing? I hear this frequently but I do not know why.
Quote:Why is a little inflation a good thing? I hear this frequently but I do not know why.
It encourages investment. Instead of sitting on their piles of money, they invest it so they get a return on it.
Quote:It encourages investment. Instead of sitting on their piles of money, they invest it so they get a return on it.
How does the increase in prices of goods and services encourage investment. I do not understand that.
Quote:How does the increase in prices of goods and services encourage investment. I do not understand that.
Because their money is losing value when it's just sitting there.
Imagine you have $500,000 in 1970. In 1974 that same $500k no longer has the same buying power. It only has the buying power of $393k.
Quote:Because their money is losing value when it's just sitting there.
Imagine you have $500,000 in 1970. In 1974 that same $500k no longer has the same buying power. It only has the buying power of $393k.
But that's not a good thing it just discourages savings and encourages spending especially debt driven spending.
Using inflation to influence economic decisions is a very dangerous game.
Quote:Hmmmmmmm
http://thinkprogress.org/economy/2015/03...-happening
I can't trust anything from a well known liberal website which has left wing views. I've seen first hand how bad the minimum wage can be. Obviously, this is a partisan issue with a lot of different views and interpretations depending on where you live, and what your political views are. Anyways, it doesn't matter whether someone at McDonalds loses their job due to the minimum wage or not. In 10-15 years, most of these unskilled, low pay jobs will be replaced by robotic workers anyways.
Quote:Isn't Wal-mart bumping up their pay to $10.00/hour soon though? (And $9.00/hour for new associates?)
the problem with walmart though is, that they have very few 40 hour per week workers and tons of 15-26 hour per week workers. you can pay your workers $50 an hour but if they only get 2-4 hours a week are they making good money? I realize that is not an exact percentage, but the point is the same. More money per hour and less working hours isn't the key to having a "living wage"
Quote:Any one where the market determines that that value of the labor provided is less than the rate for a living wage. That's the whole answer; you are worth what you are worth, nothing more.
worth to who is the queston...a multi billion dollar a year INC, society, who determines your worth? My biggest problem with places like walmart is the fact that they make billions of dollars in profit every year and pay their employees so little...They could pay a lot more in employee wages and still make billions of dollars profit, yet they choose to pay as little as possible so they can have more to themselves...It seems more and more companies are doing that now which is a perfect example of corporate greed and nothing more
Quote:worth to who is the queston...a multi billion dollar a year INC, society, who determines your worth? My biggest problem with places like walmart is the fact that they make billions of dollars in profit every year and pay their employees so little...They could pay a lot more in employee wages and still make billions of dollars profit, yet they choose to pay as little as possible so they can have more to themselves...It seems more and more companies are doing that now which is a perfect example of corporate greed and nothing more
Before you respond so emotionally to Wal-Mart's evil profits, do you even know what their profit margin is? How that margin compares in their industry and without? What a slight dip in that number does to their own financial stability?
Quote:worth to who is the queston...a multi billion dollar a year INC, society, who determines your worth? My biggest problem with places like walmart is the fact that they make billions of dollars in profit every year and pay their employees so little...They could pay a lot more in employee wages and still make billions of dollars profit, yet they choose to pay as little as possible so they can have more to themselves...It seems more and more companies are doing that now which is a perfect example of corporate greed and nothing more
The existence of corporations like Walmart alone guarantees low wages, the real discussion should be how do we keep the existence of mega corporations from even happening.
Corporations are a creation of government to protect selected wealthy individuals, without the blessing of the state companies like walmart wouldn't even exist in their present form.
But that's really the point of all this, both the state and corporations need an underclass to thrive.
Quote:Before you respond so emotionally to Wal-Mart's evil profits, do you even know what their profit margin is? How that margin compares in their industry and without? What a slight dip in that number does to their own financial stability?
I did a report on corporate greed as one of my assignments while I was getting my masters degree... Although that was years ago, I am well aware of what constitutes corporate greed...
Quote:The existence of corporations like Walmart alone guarantees low wages
, the real discussion should be how do we keep the existence of mega corporations from even happening.
Corporations are a creation of government to protect selected wealthy individuals, without the blessing of the state companies like walmart wouldn't even exist in their present form.
But that's really the point of all this, both the state and corporations need an underclass to thrive.
That's my point, walmart and others don't
have to pay such low wages, they do because they can...I understand that people go into business to make money...I have no problem with that, but to pay such a low wage and then make most of your workers part time is just selfish and greedy...
Quote:I did a report on corporate greed as one of my assignments while I was getting my masters degree... Although that was years ago, I am well aware of what constitutes corporate greed...
So then, your answer is no, you don't.
Quote:That's my point, walmart and others don't have to pay such low wages, they do because they can...
Absolutely I won't deny that but when you use legislation to address low wages it doesn't effect mega corporations like walmart it runs the guy trying to compete with walmart out of business.
Walmart would love a $15 an hour minimum wage They'd be the only game in town.
Quote:So then, your answer is no, you don't.
wrong again, if you have any mis understanding about my posts, you can google corporate greed...walmart tops the list
Quote:Absolutely I won't deny that but when you use legislation to address low wages it doesn't effect mega corporations like walmart it runs the guy trying to compete with walmart out of business.
Walmart would love a $15 an hour minimum wage They'd be the only game in town.
I don't think legislation is the answer to everything...perhaps maybe tax credit(s) for certain things such as the number of full time employees and such might help...I suppose technically that would take legislation
Quote:wrong again, if you have any mis understanding about my posts, you can google corporate greed...walmart tops the list
Sure thing bro. I'll just accept that you're unwilling to address the actual numbers in favor anti-corporation emotion.
Quote:I don't think legislation is the answer to everything...perhaps maybe tax credit(s) for certain things such as the number of full time employees and such might help...I suppose technically that would take legislation
There's really only two ways to attack the problem create legislation or competition the problem however is Mega corporations have become so massive it's becomes difficult to imagine either approach really effecting them.