(02-04-2021, 10:27 AM)NYC4jags Wrote:

(02-04-2021, 10:11 AM)homebiscuit Wrote:

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I disagree. The real culprit is the left defining the minimum wage as a living wage. It was never intended for that.

Yeah. The "living wage" thing is actually a bit of a stretch for me too. 

This may be where we diverge:
Regardless if you believe it should be a living wage or not, it should increase at the similar rate as inflation IMO. 

I can understand a menial job carrying a menial salary in certain cases, but the salary should maintain its threshold vs inflation.

I understand why you say that, because it's a neat answer and a compassionate answer, but it should not work like this.
Raising the minimum wage is an inflationary pressure.
If you set up the minimum wage (or collective bargaining wages) to increase automatically with inflation, that's a positive feedback loop, and runaway inflation is inevitable. This is a lesson that many South American countries have learned over the years.
The best way to think of the minimum wage is as a macroeconomic tool, similar to the overnight funds rate.
Set a target for inflation, and optimize the funds rate and the minimum wage to meet that target.
in the long term, the minimum wage will keep up with inflation, but in the short term, the minimum wage may have to stagnate if there are other inflationary pressures in the economy.

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