Higher minimum wage ->

it's one of the things that drive inflation. can't you guys understand this simple concept? you keep increasing it "with inflation" inflation will just keep on devalueing your currency.

Lol. Increasing min wage does not cause inflation. how about you do a bit of research before you spew shit from your mouth

Basic income -> eliminate minimum wage -> society becomes a little closer to a utopia

I dont get why people equate raising the minimum wage to communism and start talking down on people who happen to provide unskilled labor rather than a long term investment in a domestic economy

>he thinks dindus wouldn't just lounge on ubi
kek

margin productivity
if you work at mcdonalds and generate 100$ an hour of revenue, substract all the costs of running the place and paying the boss, then you get what you're worth. Problem is most bosses claim too much for themselves.

I bet margin productivity of a mcdonalds worker is more than 8$ an hour but thats where you can debate about.

>He thinks dindus will lounge around instead of fucking like rabbits for some more sweet sweet child support government money

Every national attempt at "utopia" has resulted in horror.

it has to. whenever they increase the minimum wage a greater amount of money is in contest for the same amount of goods at one part of the equation. and on the other side of the equation when i look at what wage i want to negotiate the first thing i look at is the minimum wage. and i roughly know how many times i want to get that at the very least. and others do the same min wage workers cost per hour is the reference kind of multiplied by skill level.

now you have to watch it with official inflation data because the basket is heavily manipulated, for example in the past years there was no inflation to speak of here officially and interest rates are super low but i pay 40% for my rent and at least 10% more like 20% more for food than in say 3 years ago. my wage also increased by 30%.

so that's how it is.

oh and in the rare occasions minimum wage increase does not result in more inflation it's either the increase was still less than inflation or the unemployment went up with the min wage increase decreasing work security and competition both.

well setting a new zero to work hours cost will certainly result in horror. hyperinflation is no fun.
it could be done when the 90% of the population becomes unemployable and the remaining 10% earns so fucking much they don't notice the ubi much. for now it would be catastrophic.

>3 minimum wage increases in the last 10 years is not enough
>Somehow this next minimum wage increase will catapult poor people into the middle class
>scrapping the welfare state and just showering people with cash is utopia
>Letting people work for whatever wage they negotiate and keep all of what they earn would be so terrible we can't try it.

Always a fun conversation

yup there should be a minimum amount that does not get taxed on wages, and the next tax bracket should only apply to the amount above it. lot of time and energy would be released if you didn't tax poor people so you can give them handouts later.

of course it does , look at the definition of cost push inflation .as we all know wage is the cost of the production

that's only the production side you have to consider the demand side and the cascading effect also.

perhaps it indeed might rise prices in other ways but the main case here is the rise of the production cost

domestic production only, and even that might not be immediately felt on prices. 3 major and interconnected ways can minimal wage cause inflation. it takes a little time for it to propagate you won't see it right that year maybe.

logical arguments for minimum wage can be made by both sides, so empirical evidence is all that matters

alright find me an economy where nothing changed only they increased the minimal wage and let's look at the data.

Yeah I wouldn't mind if like the first $8 an hour was tax free and we got rid of the actual "minimum" wage. It would allow people to work for like $5 an hour and be just as well off.

eat the poor

but the amount and quality of arguments against it overwhelms those for.

>money gets actually saved for bigger purchases rather than quick fixes
you dont understand poorfags very well do you?

>minimum wage increases
>necessities costs are increased to bring more profit
>poor workers can still only afford necessities

Are burgers really saying they don't have a tax free income bracket?

The thread should have ended here. This is basic economics, only people that """think""" with their feelings rather than reason and socialist retards agree with raising minimum wage.
If anything, the minimum wage should be abolished, so people that aren't skilled enough to be worth minimum wage payment could enter the workforce and learn skills.

But if the price of the goods/service being produced is being raised, then this means the contribution of the worker into the economy is also being raised.

Without minimum wage being raised in line with goods and service prices being raised, then the contribution of labour far surpassed the value of labour.

All that happens here is that those who supply this labour cannot benefit from their contribution as they can't afford their share of goods and services.

If this carries on for too long, then the gab between contribution and value widens for low paid workers to such an extent that it the labour becomes an inadequate form of income and these people then become a drain on the economy.

This either forms a lack of production, or causes labour to be replaced by machines... Which is already what is happening and will only accelerate.

If the minimum wage doesn't increase with inflation it's pretty damn useless

Why not make it $1 billion /hr
That way everyone only has to work 1 hour and can retire

>people on a business forum unironically arguing for ubi or any minimum wage at all

I remember when I was 19

>what is the standard deduction

That sounds even better.
We could make it so you could sue the government if you got fired, too.
Everyone wins!

have no idea how your tax system works
i hardly know my own intimately

Eh, I'd be for ubi if it meant every other single form of government assistance and schlock was done away with, but that wouldn't happen.

>Socialist

Why is socialism so bad?
On average democratic socialist countries have much happier populous than compared to non-socialist democracies.

Please refer to Greece and Venezuela

>Why is socialism so bad?
Are you genuinely asking or should I insult you? Also,
>measuring happiness

Please refer to Denmark, Norway, Canada, Netherlands, Belgium and many more.

yeah gdp per capita really makes a difference doesn't it?

>mfw Ameriburgers keep thinking that
Scandinavian countries, Canada, Netherland, Belgium etc. are based on socialism

There shouldn't be a minimum wage.

Nice trips.

They aren't 100% socialist, no country is. They're just significantly more socialist than other countries such as the US.

Americas economy is alot more regulated than ANY of those countries you mentioned. USA is more "socialist" than any of those countries.

I meant market instead of economy.

protip: more capitalism= more free market

learn basic economics

and stop being a communist you faggot

>goverment forces me to spend more on you than I am willing to pay you -> I don't hire you

Congrats, now you make €0/h. Good luck with all that "spending power".

This is what fools don't understand. Same thing with any price control. This is basically how government intervention creates shortages: you can force people to charge less for a good (like rent control), but you can't force people to develop housing. And as long as there are other parts of the market to invest in, people will put there money into things that they think will be more profitable

I'm sorry your business model is so bad that you need slave wages to have any chance of functioning.

What if I just use the low wages of some jobs to motivate me to get better jobs?

Based on a study: the more ignorant you are the more happy you will

Germany added minimum wage 2 yrs ago.

this

you can't have minimum wage increasing without inflation also increasing, otherwise you have massive shit problems

>Higher minimum wage

Lefties get out.

REEEEEE

and they doubled their inflation which was probably the goal all along.

>so happy he couldn't finish the post

Saved.

>raise minimum wage
>most people in minimum wage jobs are in unskilled jobs
>unskilled jobs are the easiest to automate
>people on minimum wage are replaced by computers and self service machines as these options become more viable
>minimum wage cucks become NEET

>raise minimum wage
>employers have to charge more
>inflation rises
>minimum wage fags are no further ahead in life, while people who made a little more now make less.

Nice solution.

Also, raising minimum wage just gives employers more justification to do pic related.

>So why do people oppose raising the minimum wage again?
Because it's fucking retarded and causes unemployment.
It needs to be abolished.

Look what the minimum wage did to Pueto Rico and American Samoa.

>On average democratic socialist countries have much happier populous than compared to non-socialist democracies.
>le happy index

Switzerland is one of the most capitalist countries on earth and they have higher living standards than Scandinavia.

Please kill yourself you brainwashed cuck.

>mfw I'm canadian and this brainwashed leftist actually thinks my country is socialist

Please just fucking kill yourself you socialist turd. How fucking stupid are you people?

>I support perpetual inflation that doesn't occur due to supply and demand.
Neck yourself.

Abolishing central banks and allowing natural deflation helps the poor and middle class far more than a minimum wage increase will.

Libtards and corporations don't want that though.

Switzerland has a well functioning social system and scandinavia is not a country you dumb fuck.

>Switzerland has a well functioning social system
What does that even mean?
USA has the same fucking shit. Welfare.

The difference is hardly anyone in Switzerland uses the welfare system. People in Switzerland WORK.

They're one of the most capitalist nations on earth so they have some of the highest wages on earth and the lowest unemployment. They also have the highest local purchasing power.

They also have private healthcare.
Sorry if this destroys your delusional socialist narrative.

>scandinavia is not a country
I was referring to all of the Scandinavian countries collectively.
How stupid are you?

#
>On average democratic socialist countries have much happier populous than compared to non-socialist democracies.
>le happy index

Switzerland is one of the most capitalist countries on earth and they have higher living standards than Scandinavia.

Please kill yourself you brainwashed cuck.

> switzerland = democratic socialist country. Retarded cunt.

>democratic socialist

>unions are only 20% of the workforce and RARELY go on strike
>most of everything is privatized including healthcare
>banking culture permeates society
>currency with very low inflation and sometimes deflation
>low taxes
>low regulations

How in the fuck is this democratic socialist? They're more free market than USA is.

Please continue being butthurt though, this is hilarious.

not sure about that capital flees deflation when corps move out of a country poverty remains.

>capital flees deflation when corps move out of a country poverty remains.
Prices come down in the home country, both for capital and consumer goods.
Jobs get created in other sectors of the economy.
High paying service sector jobs become more abundant.

If other countries do the manufacturing and my country gets cheap consumer goods, that's a really good thing.

It's the difference between 1st world and 3rd world countries.

> why would they go on strike with every one earning a huge salary, even in the lower education sector? (Keyword: high virtual minimum wage)
> inflation: pricelevel is extremely high already, why would prices increase even more? It would need the wages to increase even more
> people in the US also work... average inome is 20k$ per year. Some need to work 2-3 jobs to feed a family.
To put it in basic macroeconomic terms for you:
Higher wages => higher consumption => higher production => more growrth => $$$
Thus, minimum wage has a positive effect to the economy. If the wages ware too low to be able to live off the income, people rather kill faggots like you on the streets.

Why are you putting your own words in quotes?
Do you not know how to use this website?

>> why would they go on strike with every one earning a huge salary, even in the lower education sector?
Yes. Wages are high in this country thanks to their free market policies.

>Higher wages => higher consumption => higher production => more growrth => $$$
Of course high wages are good.
What is your point?

>minimum wage has a positive effect to the economy
No it doesn't.
It destroys jobs for people who aren't productive enough to make above the minimum wage.
They will have NO job, meaning there is LESS consumption.

What do you think happened in american samoa?

>people rather kill faggots like you on the streets.
LOL
Can you even speak english?
It's like you quoted the wrong post and started spewing a bunch of irrelevant bullshit.

What exactly are you criticising regarding my english abilities?

You greentexted your facts, I answered to them in the same manner. Are you fucking stupid?

companies like mcdonalds pay a low single figure percentage of taxes and you are telling me they can't afford to compensate their workers properly?

If the minimum wage leads to technological innovation that can substitute workers, this is considered a positive technology shock that would only further increase productivity. Low wage jobs will then be created elsewhere due to structural changes.

I didnt read this whole thread but i figured you are against minimum wage, which you actually are, so no, i am answering to the exactly the post i meant to... namely yours.

Typing on the ipad sucks... you can keep the double words

>What exactly are you criticising regarding my english abilities?
Maybe because you just misspelled a word and made a run-on sentence.
lol

>You greentexted your facts
You used it totally wrong. Why would you put a question in a greentext? Are you legitimately retarded?

>If the minimum wage
Nobody was even talking about the minimum wage.
This was a debate on whether Switzerland is a free market or socialist country.

Like, what the fuck. Are you actually this dumb?

It was a rhetorical question, dumbass.
It was implicitly invalidating your greentexted argument and thus it was not a question.

Every first world country has a free market. Switzerland as any other developed country has socialism and free market, so the question if it is one or the other is utterly stupid.

>nobody was talking minimum wage
This whole thread is about just that.

I see you are an expert on greentext rules, but have no clue about economics.

And wow, you found some misspelling on Veeky Forums by someone typing on a tablet.
You are clearly the winner of the argument now.

>It was a rhetorical question, dumbass.
So that means I don't have to answer it?
Good.

>Every first world country has a free market.
No.
Some are much more free than others.
Switzerland one of the top 3 freest out of all 1st world nations.

>Switzerland as any other developed country has socialism and free market
No it doesn't. They have the LEAST amount of socialism in their economy.
That's WHY they are so successful.

>This whole thread is about just that.
I wasn't talking to anyone about the minimum wage in this thread until you started talking to me about it randomly.

>but have no clue about economics.
Coming from the guy that's probably a keynesian.

>You are clearly the winner of the argument now.
Of course I am.

1st point is wrong
2nd point is offset by higher prices and unemployment
The rest can't possibly follow

>Higher minimum wage -> More spending power

I'm actually for minimum wage increases in places like America, but that's just blatantly wrong.

>Wages increase
>Businesses raise prices to maintain healthy profit margin
>Spending power decreased

>increasing interest rates boosts inflation

This only happens from a neo-Fisherite perspective

>work hard to build skills that make above min wage
>let's say 12/hr-15/hr
>min wage raised, now losers who were making 9 make 12
>my wage isn't increased
>effectively lost everything I had gained

Thanks liberals.

Also, everyone I work with feels this way. Burger flippers want 15 a fucking hour? we laugh. There are literally jobs that require degrees that don't make 15.

Just tie the wage to either inflation or to the highest earner in the company like the CEO. Done. Now you've preserved the hierarchy while elevating everyone, not just the stoner dropouts. Thanks.

no actually it's pretty common sense and widespread knowledge, see long term the inflation trends to the interest rates, short term they can move against each other but that's temporary.

>we shall raise the rate of wages which, however, will not bring any advantage to the workers, for, at the same time, we shall produce a rise in prices of the first necessaries of life, alleging that it arises from the decline of agriculture and cattle-breeding:

>we shall further undermine artfully and deeply sources of production, by accustoming the workers to anarchy and to drunkenness and side by side therewith taking all measure to extirpate from the face of the earth all the educated forces of the "goyim."

>in order that the true meaning of things may not strike the "goyim" before the proper time we shall mask it under an alleged ardent desire to serve the working classes and the great principles of political economy about which our economic theories are carrying on an energetic propaganda

nice job retards

xroads.virginia.edu/~MA01/kidd/thesis/pdf/protocols.pdf

Thanks for this

How does a high interest rate raise inflation?

the way new money is created driven by loans today and loans and bonds interests are adjusted to the interest rate logically. so long term the new money flowing into the system is a function of two things: interest rates and velocity of money. short term the velocity of money is a more important factor it's an immediate multiplier on the money supply. the other affects the growth of base money supply.

funny thing is central banks like to do two things to fight deflation:
1 they cut interest rates which results straight in a real estate bubble
2 they try to drop money on the market called qe and this results in a bubble in the stock market or the whole financial market

but neither of them does anything for the underlying problems causing deflation or the production sector or the private citizens spending power.

what they do is make the situation worse. much worse. when these bubbles pop because the low interest rates long term just get you closer to deflation, so you have to raise them, a lot of people will lose about half his wealth.

i"m not an expert of this stuff this is just my crude understanding how it's supposed to work out by the critiques of the fed.

Yes it does
Business spend more money with wages + people have more money to spend

>nominal wage raises

higher minimum wage ->
companies all have to pay employees more->
companies all have to charge more to still make profit->
consumer has to pay more for goods and services.