Is increase in minimum wage a good method to fight inflation?

[Spaceman1000$]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

[Lida93]

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

Like you rightly said in the Op yes, there will be increase in prices of goods and services by marketers immediately it's announced that minimum wage of workers has been increased because they assume that that's the only way they too can benefit from the increase through a responsive increment in commodities. I think elevating the minimum wage without correspondent resolution to tackling the main economic causes of inflation only makes the country currency to further lose more value in the market.

[Oshosondy]

Increase in minimum wage can be used to ease the pressure of inflation that increase in price of goods and services have on government workers. If the minimum wage has been increased, this will help the government workers to be able to be able to have more money to pay for goods and services after there have been rise in the cost of goods and services. But this is not the way to fight inflation, it is just a way to reduce the effect of inflation on government workers.

[davis196]

Labor costs will go up, which will force the employers to raise the prices of all goods and services.
The best way to fight inflation is to cut government costs and reduce the amount of money circulating in the economy.
Unfortunately, this method of fighting inflation might drive the economy towards a recession, leading to less demand for products and increased levels of unemployment. There's no "silver bullet" solution. Raising minimum wages and pensions is a populist solution, that is intended to protect the purchasing power of the poor people, but this might create a pro-inflation spiral in the economy.

[Spaceman1000$]

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

Like you rightly said in the Op yes, there will be increase in prices of goods and services by marketers immediately it's announced that minimum wage of workers has been increased because they assume that that's the only way they too can benefit from the increase through a responsive increment in commodities. I think elevating the minimum wage without correspondent resolution to tackling the main economic causes of inflation only makes the country currency to further lose more value in the market.

Mean while the increase in minimum wage is one major factor use to increase the purchasing powers of citizen's, so should we not increase wages because of the prevailing inflations that is damaging the economy.
However I agree with some of your points in terms of corresponding resolution in terms of productivity and tackling the root cause of inflation, still it doesn't take the place of wage increase.

[Lida93]

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

Like you rightly said in the Op yes, there will be increase in prices of goods and services by marketers immediately it's announced that minimum wage of workers has been increased because they assume that that's the only way they too can benefit from the increase through a responsive increment in commodities. I think elevating the minimum wage without correspondent resolution to tackling the main economic causes of inflation only makes the country currency to further lose more value in the market.

Mean while the increase in minimum wage is one major factor use to increase the purchasing powers of citizen's, so should we not increase wages because of the prevailing inflations that is damaging the economy.

Understand this mate, increment of minimum wage as a major factor like you called it doesn't give sustainable solution to the inflation problem it only gives workers a short frame relief. A purchasing power that can only be felt within the period the wage was increased but can't be sustained to the future doesn't seem like a major factor to me when inflation still persist.

 

However I agree with some of your points in terms of corresponding resolution in terms of productivity and tackling the root cause of inflation, still it doesn't take the place of wage increase.

The points doesn't need to take the place of wage increment but if the right policies can only be put to proper functioning by the government in tackling the root cause of inflation then a minimum wage increment when implemented will be felt not just only in purchasing power but with value to the currency. AFAIK, purchasing power is not in the quantity of the currency but in the monetary value of the currency when pegged with other currencies in the international market.

[demonica]

With what I'm experiencing here in my country right now, increasing the salary isn't really a solution. Rather, I feel like it's just their action to somehow balancing the continuous increase of the prices of goods. For example, if prices continues to rise but the salary remains the same, people won't be able to buy more products. It'll force them to save money which means it'll decrease the economy's purchasing power. So in over for them to maintain the purchasing power and the economy, they increases the minimum wage so that those minimum wage earner can still afford to spend for their living expenses.

I'm not an expert with economy but it seems like since they cannot find a long term solution for inflation, they just increase the minimum wage to avoid worsening of the economy. It's like a short term aid that they provide.

[HeRetiK]

Increasing minimum wage does not fight inflation but helps alleviates some of the symptoms that come with it.

More importantly it's unlikely to increase inflation alongside with it, given that (1) mininum wage workers need to pay for basic necessities like food and rent either way, so it's not like they'd have an effect on the demand side. What little overhead they would gain for "splurging" is likely to be negligible in the greater economy. And (2) companies will always charge as much as they can, regardless of how little or how much they pay their workers. After all they're not charities.

In the end no noticeable effect on inflation itself while alleviating some of its symptoms seem like a win to me.

[Mahanton]

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

Like you rightly said in the Op yes, there will be increase in prices of goods and services by marketers immediately it's announced that minimum wage of workers has been increased because they assume that that's the only way they too can benefit from the increase through a responsive increment in commodities. I think elevating the minimum wage without correspondent resolution to tackling the main economic causes of inflation only makes the country currency to further lose more value in the market.

Would really be just that a temporal thing and not really that a solution if we do speak about increasing those minimum wage. We do know that there would really be several or tons of things that would be needing up to consider before it would really be considered. So its better not to make yourself that too mindful about those things because it would really be just that making you that hopeful on something that cant be happening.
This is why it would really be that best as an individual that you should be finding those extra jobs or works or having investment or having that business on which it would be able to patch up those things
on which you would really be able to make yourself that sustain even if inflation on every year gets worst. If you do have other source then you cant feel out those numbers since you do have the money
that you could really be able to spend out.

If you would really be just that contented on your current day job and year by year which goods and services cost becomes more worst then you would really be
finding yourself struggling on day to day living on which this is something that you should really at least sensible on the things that you've been dealing with.

[icalical]

It will help the people fulfilling their needs, but it won't immediately solve the inflation. Increasing the minimum wage can even lead to higher inflation sometimes. When the labor cost increase the price for goods will increase too. With more money people will spend those on more goods and services, this will also lead in demand of those goods and service and most of the time with the demand increasing company will decide to increase the price for their goods and services this also lead to inflation.

Other than that Inflation is a really complex problem, it is not caused by single phenomenon and will not be solved by a single solution, many parties and politics will need to involve.

[Linggajanitra]

Inflation has a direct impact on the economy of the country and the surrounding community. Among them as obstructed the country's economic growth.
Based on the cause of inflation is the presence of demand inflation, this type of inflation occurs due to an imbalance between high demand and unbalanced supply in production. This results in an increase in the price of goods in accordance with the law of demand. And there is also inflation in production costs, this is due to an increase in production costs caused by an increase in input costs or factors of production. Finally there is a bottl neck inflation, which is caused by an unbalanced demand or supply factor.
And there is also the impact behind this inflation.
   1. Impact of inflation on exports
Decreased export capabilities of a country, inflation can make export costs higher, thereby reducing the competitiveness of export goods that cause income from the country's exports can decrease.
   2. Impact of inflation on the interest in saving.
The interest of people to save tends to decrease, this is caused by interest income that is lower than savings while savers still have to pay administrative fees for the tubes.
   3. Impact of inflation on the calculation of the cost of goods.
This makes it difficult for the basic price because it can cause the cost of goods to be too low or too high so that the level of inflation in the future is often difficult to predict accurately.
   4. Impact of inflation on income.
This is a positive and negative impact on individuals, because in some situations such as minor inflation that might encourage business actors to expand production which in turn can increase economic activity.
There may be a way to avoid inflation with bitcoin and crypto assets. Because basically it becomes one of the approaches considered by some people. That is because Bitcoin and crypto assets are often considered as a hedge for inflation because of the specific properties they have. Some investors are considered crypto assets as an alternative to store values such as gold. Besides IT, there are also investors who use bitcoin and crypto assets as part of a wider investment photofolio to reduce risk. Diversification allows them to protect themselves from large value fluctations. Then you can also use a decentralized financial platform or staking to get yields by storing supporting crypto. This can be a way to get a passive income that can fight inflation.
So the conclusion, there are several causes of inflation are increased demand, increasing money in circulation, increased production costs, mixed inflation, and as a result of community behavior. Meanwhile, the impact of inflation between it on income, calculation of basic prices and interest in saving. On the other hand how to overcome inflation can be done with several policies, namely monetary, physical and non monetary.

[Helena Yu]

Government accept fiat as a legal tender, fiat is inflationary currency because the government can prints money, however the government will increase the minimum wage in order to fight inflation? the government create the problem and they also give the solution lol.

The increase in minimum wage can't fight inflation, if the increment surpassing inflation rate, the government can't get rich.

[Bitstar_coin]

Absolutely not, it doesn't help to fight inflation rather it increases the situation because the government will have to inject more money in circulation to pay wages which is not healthy for the economy.
The government needs to reduce the purchasing power as demands is higher than supply.
Besides all countries government knows how to tackle inflation from different levels using monetary policy, but the situation keeps growing.

[Zlantann]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

An increase in minimum wage is just a temporal means of fighting inflation. If the government doesn't handle the root cause of the inflation and increase productivity the country will resort to printing more money which will lead to massive demand-pull inflation. The long-run effect of the increase in minimum wage is an increase in labor cost which might force businesses to lay off some workers. Businesses will also be forced to increase the price of goods and services due to high labour costs. Immediately my salary was increased, the landlord of my house also increased my house rent. For me increasing the minimum wage is not the best solution to inflation rather the government should seek means to earn more money through exports.        

[mu_enrico]

It depends on what you mean by "fight inflation." Is it about making it (the inflation) stop or slow down? Definitely not, since real inflation is affected by monetary inflation, i.e., an increase in the money in circulation. The new minimum wage policy won't increase money in circulation.

If it's about countering or balancing the effect of inflation, then yes to some extent, assuming the employment rate is exactly the same. Workers now get more money. However, if you calculate the real value of goods/services they purchase, it difference will be a rounding error since the price of goods and services also inflated compared to the previous year. The problem is, that wage isn't something that you want to be dictated by the government because it will affect the employment rate. For a company that is already on the edge of being unable to pay their employees, they may go bankrupt and make lots of people unemployed. The minimum wage is a bad policy if it's strictly implemented, only useful as a guideline.

[franky1]

raising minimum wage raises costs of goods. so becomes a cycle of inflation of labour->goods->labour->goods->labour

the actual counter to cost of goods cost is finding cheaper methods of production. industrialisation, automation, imports.

for peoples income benefit. different NEW industries should open up. where minimum wage people can move into better pay/skilled labour to increase earnings. rather than asking for pay rises within the same company

for instance
grocery/fast food doing self service screens/ kiosks. whereby minimum wage earners then move on to do other roles elsewhere like landscaping on 2x income. thus the cost of groceries/fastfood doesnt need to increase due to minimum wage increase demands. and the populous find better jobs to get above minimum wage

if you are 25yo+ and on minimum wage of an unskilled role that requires no experience, you have not tried to better your circumstance. minimum wage unskilled should be for the younger crowd of workers that lack experience of the workforce. where minimum wage should be entry level for those lacking experience, skills

[RockBell]

Increase in minimum wage can be used to ease the pressure of inflation that increase in price of goods and services have on government workers. If the minimum wage has been increased, this will help the government workers to be able to be able to have more money to pay for goods and services after there have been rise in the cost of goods and services. But this is not the way to fight inflation, it is just a way to reduce the effect of inflation on government workers.

The moment that minimum wage is increased then their will be a shoot in the price of commodity and that is one of the reasons the government is always considering while deliberating on the issue of minimum wage. And more inflation we set upon the people, and the economy will also be affected, and even with the so called financial expertise the economy is still suffering. We know the usefulness and we know how beneficial the increament will be in the lifes of the government workers, it will be better if the government can  regulate the price of goods, it will be much better than increasing the minimum wage that is in my own opinion.  Because even how financial advisors are falling.

[goldkingcoiner]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Its a temporary band-aid on the festering wound of a broken money system and serves no tangible purpose.

Of course it is not a good solution, because you would have to keep doing the same increase in minimum wage again and again and again in perpetuity. Who is going to keep track of what the number for the minimum wage is now? Do we just increase once a year and every business has to keep up and update their employees salaries every time? Also, the very point of inflation is that money becomes worth less because of some triggering economic factor. And how are you going to stop the businesses from raising their prices every time they have to raise their employee wages? We live in a free market, after all...

[Rockstarguy]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage will just only help for a giving time if nothing is done about the inflation because If even the minimum wage is increased and their is nothing done to stop steady rise of inflation you will noticed that no matter the increase of of minimum wage their is no value in money. The solution of to fight inflation is not by increasing the minimum wage, this is just temporary.  The best way to fight against inflation is to do the necessary things that can cause instant deflation.

When their is inflation it will be even difficult to increase the minimum wage because this a time that the economy will be struggling,  government borrowing money and owing workers. I think it will be difficult for government to increase the minimum wage. The best thing to do is to do everything that will improve the the economy and help deflation to take place.

[bittraffic]

This is the kind of solution that will also make the businesses crumble to the ground. Businesses also will need to profit and if the government forces them to just increase the salary of their employees, they will lay off some people to lessen the people they will have to pay.

This will result in a more problem in society where the unemployment rate increases. There are many instances in my country that have this issue, especially in the rural areas where private companies are just removing the store attendant because they only need one who will act as cashier as well.  

The businesses are also struggling, this is why some of them are trying to take it on their products, like the shrinkflation as a result of it.

[Husires]

Increasing wages is a solution to inflation resulting from supply chain problems or energy and oil problems, but it is not a solution to any inflation. If there are problems in state administration, increasing wages means printing more money without monetary cover, and means increasing the supply of currency and without there being a gold and dollar reserve. inflation will inevitably increase and the problem will be greater.

Inflation requires knowing the cause of the problem first and then studying the best way to treat it. There is no fixed treatment for inflation.

[el kaka22]

Not really, it just makes a lot more people live with minimum wage. It is a good thing to increase the minimum wage so that people are not poor, free market has some stops, regulations are a must, if it was 100% free, we would see 8 year olds working too, or people working all seven days, or people working 16 hour shifts, or people working for a penny.

There are some must have regulations and minimum wage is one of them, if there is no minimum wage, I bet you that companies would pay less than what we have as minimum wage right now and people would be in poverty. We should realize that we need to make it higher at times, to catch up with inflation, it is not a good thing for the economy but it is a must to protect the people.

[Promocodeudo]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Personally I don't see this as a measure to curb inflation, within the economic context the effect of minimum wage on inflation is just little, the only importance of this measure is more circulation of cash but note when there is inflation though the government considers increasing worker salaries in other to align with the current economic situation but in real sense these measure does not force the price of goods down, the obtainable measure towards curbing inflation which is economic crisis is to prioritise production with the help of government and private sector alignment, also monetary policies should done adequately, the government should put to an end to the idea of borrowing to service debt, local and international debt should not be undermined, consider the fact that some firm or business might deem it necessary to reduce their workforce because of the increase in labour cost and again increase the price of their commodity so that they will not feel the impact of the new minimum wage, so how does this curb inflation.

[xSkylarx]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It will also increase the number of people spending or purchasing stuff, which also means the demand goes higher, and we know that the price also goes up. Though if we see it from our own perspective, it is really helpful but in the long run we can still feel that it has no effect as the price still goes up and our increase will be eaten again by the expensive stuff. The only way to fight inflation by ourselves is to cut spending and add income, that is the only way and  let the government do its job.

[Davian144]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage in all employment sectors will only save life difficulties for a while because this is only part of the initial assistance for all groups so that everyone does not feel frustrated by the arrival of inflation. Meanwhile, the way to overcome inflation itself is to reduce the price of goods so that there is an increase in people's purchasing power and can maintain the stability of the value of the country's currency so that inflation will not easily return at another time.

Because if inflation has occurred and with the decline in people's purchasing power and the absence of an increase in the minimum wage for workers, this will clearly make everyone feel more miserable because of this. Because it can be likened to someone who has fallen and even been hit by a ladder when their minimum wage is not increased by all companies or by all government agencies in their own country.

[kryptqnick]

I think this Investopedia summary pretty interesting:

Some economists argue that raising the minimum wage artificially creates imbalances in the labor market and leads to inflation. Other economists note that when minimum wages have been raised historically, inflation did not follow.

So it sounds like even economists, professionals in this question, have conflicting views. Perhaps there's no single answer.
Increasing minimum wage doesn't seem to help fight inflation, and I don't see how it could. What it can do is try to help the most vulnerable people suffer from the inflation less. But it's unclear whether such decisions have a negative impact either, because even though it seems that they should, in practice they might not.

[Cookdata]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Check the countries with mostly high numbers of inflation, there importation is greater than their exportation and because they depend on foreign currency for importation, it gives it more demand than their own local currency and that weakened their economy, their purchasing power, and the currency

You don't increase a minimum wage when an economy is faced with inflation, there will be excess supy of money that will be chasing the less available commodities and thereby increased the price of commodities rapidly, the economy will only suffer more from inflation to hyper inflation.

When an economy is not stable and inflation is high, what the government need to tackle isn't increasing the minimum wage, they need to look for what exactly is causing the inflation to increase and make sure they fight it and bring it down. For example, 8 months ago, the United state was dealing with inflation of 9% increment, everyone was feeling the heat but today, it has been reduce drastically to 3%, China has an inflation of 2% currently and that's why things are good there and if they want to increase minimum wage, now is the right time but that most also be manage properly to avoid excess supply of currency.

[Franctoshi]

increase in minimum wage is just like a pain relief drugs, It's one of the measures to help caution the effect of inflation on the masses within a short period of time. We have money inflation and price inflation, Therefore to tackle both types of inflation you can reduce the inflation rate by reducing the money supply QT, through increasing the interest rates, which has been the method that the Fed applied when the inflation rate was way high, and secondly, reducing the cost of manufacturing and increases production ,thereby encouraging more locally manufactured goods and products, Therefore when the supply of products are on the increase, definitely will help reduce prices of goods ,these are possible ways inflation can be reduced to barest minimum.

[Fortify]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage is often a vote winner and many governments will push it as far as possible, sometimes too far, because it's the companies that have to pick up the bill for this increase - not increasing government expenditures. However it should be done delicately because it can actually cause businesses to slow down or reduce their spending on employment, plus it makes those who have got a few notches above minimum wage disincentivized and demoralized. Then again greedy companies are all too often raising prices while using inflation as a measuring stick, so it makes sense to force them to raise wages at the same time, but pushing too hard can cause a backlash on investment in the country.

[Casalania]

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

[Scarlett_23]

To reduce inflation, the total wealth of the country must be increased. In that case, how many steps are needed, such as increasing the amount of remittances in any country, reducing inflation in that country. Also, the amount of defaulted loans should be reduced, currency of the country should be avoided from being smuggled abroad. The country needs to be manufacturing oriented and much more export oriented. Raising the minimum wage will never stop inflation. Raising the minimum wage may benefit some people but is not a permanent solution.

[Faisal2202]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It is a good way to fight inflation, I don't know about at a bigger level like how much damage this could do at the country level but at the individual level, a person who was buying 1 Kilo Rice for $1 before inflation will find it difficult to buy the same rice for $5. But if the person gets an increment in the salary then he might find it less or not difficult to buy that same amount of rice for $5.

The point is, with inflation the purchasing power decreases but if you have more money then it is increasing, and isn't that obvious to us. I can't agree with the single factor that you have mentioned in your post about challenging, because this is not the only reason causing more increment in inflation, there are different past situations which has left a country in no condition or due to the corrupt leaders' inflation rate increases.

[tabas]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

As the minimum wage increases, it is also going to make the employers do something to at least take back for that increase and that's through their products or anything they are producing to increase the cost as well. Increasinng minimum wage might not be the solution but it is really one way to at least give us better way of dealing inflation.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It is one of the good measures but it's not going to be enough if we want to totally triumpant over it. That's why as a minimum earner, we have to expand our skills and make use of our time better to go with another source of income so that we don't rely to our mininum wage whether it's increased or not.

[Uruhara]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Raising the minimum wage may only be a temporary solution. Because in the long term this could trigger higher inflation. Inflation must be addressed from the root of the problem. If it is because it is difficult to obtain goods or services from abroad, it would be better to improve and utilize natural resources and the quality of human resources in the country itself. But a faster and more common way today is to increase interest rates, which has also been a proven effective measure to withdraw excess money circulating in the community. Because inflation sometimes also occurs due to an abundance of money supply in the country due to too much printing or something like that. So efforts must be made to reduce the supply of money in circulation slowly. And one of them is by increasing bank interest rates. It's just that the effect is sometimes a recession. But it is a risk that must be taken. Because without taking risks it will still be difficult to overcome high inflation. Because high inflation, if not immediately addressed, could trigger even more severe hyper inflation and could destroy the country's economy itself. Well, this is not very easy and requires a process that takes years.

[edy_58]

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

Yes, this may only provide temporary relief for workers in the face of inflation, but if inflation continues and cannot be controlled then this will not have any impact because it is possible that companies will no longer be able to pay their employees and this is really a bad thing. The impact of inflation is not good, so it would be better for the government to think about how to eliminate inflation so that people do not have difficulty meeting their needs.

[Alphakilo]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Do you know what an increase in minimum wage does? It increases the prices of goods and services. Increasing mininum wage is not the solution to inflation. Want to know what's better than increasing minimum wage?  Having no general minimum wage fixed by the government and instead choose to strengthen labour or union rights so that each industry can negotiate their own minimum wage, which has the effect of allowing people to receive the benefits of their company's growing wealth without having to deal with the increases in price that occur across the board like they do with a federal minimum wage hike. In this way, workers actually have an incentive to make their company successful because their union rep will be able to negotiate them better wages with growth, while also giving them a reason to care about the company's ability to compete on the open market.

[shinratensei_]

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

it instead might increase inflation to be more rampant because the worth of money in the perspective of people also decreasing as mentioned by OP but yes it will give relief temporarily but overall its just delaying problem that needs to be focused, the solution would be best if the government could incentivize production on certain thing like food by giving tools and so on so that the price of food gonna decrease or anything out there that are becoming expensive due to inflation because the supply is high.
just basic economic that if the supply vastly surpass the demand it will automatically become cheap enough, by boosting production, certainly it will not make the people working in that sector suffer.
but well, i guess government knows best about what to do but sometime implementation is just hard.

[dothebeats]

Perhaps increasing the wages alone is not the solution. It is one part of the equation, but if it's the only thing that will be controlled, prices of goods will come up fast. Because the means of production is significantly more expensive, producers will have no choice but to increase their prices as well. A controlled inflation is hard to achieve, but if the economic planners are smart enough to spot the signs from a mile away, it is possible and very achievable.

Giving people a lot of money while the said money's value tanks is not a smart way to combat inflation.

[bakasabo]

Why not just make money printing machine work unstoppable and give money for nothing? How they plan increase if minimum wage to help to fight inflation? For employer it is a tiny solution, as he will earn more. For employer, that means more tax amount to pay. And where employer going to take price difference to cover that? Of course from product or service price increase? Which means inflation again.

[DeathAngel]

Increasing the minimum wage can be a double edged sword when it comes to combating inflation. In one way it can provide immediate relief to low paid workers boosting their purchasing power & potentially stimulating demand in the economy. But it can also lead to higher production costs for businesses which may could passed on to consumers via price increases. The effectiveness of minimum wage increases in combating inflation depends on various factors such as the magnitude of the increase, the overall state of the economy & and the specific dynamics of the labor market. It’s important to consider a comprehensive approach that includes other measures to address inflation effectively.

[LastKiss]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No it's not, scarcity of goods would be the main factor why inflation always increasing. lots of young people didn't want to dive into the production field because they thought that if they worked on that field they wouldn't get rich fast many young people looked for a way to get rich fast like by gambling, investing, becoming famous, etc. we need a real solution for this and young people should open their eyes that crisis would happen at any time.

You can read this reference: https://www.investopedia.com/articles/markets-economy/090516/what-are-pros-and-cons-raising-minimum-wage.asp

In that article stated "raising the minimum wage believe that higher wages could lead to inflation, make companies less competitive, and result in job losses".

[Arenga pinnata]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think increasing employee salaries or wages is only useful for helping citizens fight the effects of inflation. And balancing employee needs so that they remain met even in inflationary conditions. Meanwhile, regarding inflation itself, actually increasing employee wages will have no impact at all if it is to overcome inflation itself. Because fighting inflation only has to be done by withdrawing excess money in circulation or increasing the level of productivity of goods needed so that they can still meet everything that consumers need. Because usually inflation is also triggered by the scarcity of a good or commodity. Such as the food crisis and the scarcity of petroleum. So increasing the minimum wage for employees only helps employees survive inflationary conditions but cannot overcome inflation itself.

[franky1]

decades ago in previous inflation's. employers didnt want to move the market rate of labour by increasing minimum wages.. which then impacted costs of goods
what they did instead(especially in america) was incentivise recruits/employees with hidden benefits, such as dental care, healthcare and pension matching

this meant the post tax cost of labour stayed low and employers got tax incentives/rebates by offering the benefits. which helped keep the employers costs down thus kept the price of goods down

employees then got free healthcare/dental which cut down their post tax medical costs. so they had more cash to spend on other things...
.. and thats the story of the evolution of the industrialisation of the medical system

[Peanutswar]

Even if they will increase the minimum wage if the inflation has continuously increasing all of the expenses will now goes high no matter what happens due to products and demand into circulation but if you are just a sleeping giant country you can easily manage those higher prices but of course, most of the country doing an import and export so there's a demand and price action hike. Reason id recommend not sleep your money in just in savings instead while having inflation your money getting a good income flow other than your salary so you don't get too much affected with inflation.

[LogitechMouse]

Re: Is increase in minimum wage a good method to fight inflation?

Not an economist here, but increasing the minimum wage is one of the solutions to at least lessen the burden on the people that they're experiencing. Prices of goods are increasing, food prices are increasing, prices of commodities are increasing, and prices of all that have prices are increasing.

Inflation will not be removed so I guess we can say that increasing the minimum wage will be the forever solution of the government. Well, this is not a one-stop solution because it also has a cons. Increasing minimum wage means higher expense for those business especially those manufacturing companies who are paying lots of employees. How they will cope up with the increase wages? Increasing the price of their goods which will affect us consumers in the end.

At the end of the day I believe this will be a cycle. Inflation happens, government will increase minimum wage.

[slapper]

Raising the minimum wage to fight inflation is laudable. A sophisticated economic dance, not a simple leap. Businesses pay more for workers when minimum wages rise. The natural reaction? Increase prices to retain margins. That's the problem: this can fuel the inflation we're fighting

It's not all bad, though. A higher minimum wage increases workers' spending power, which can enhance demand for goods and services in moderation. Key word? Moderation. We walk an economic tightrope. The execution is harder than the idea. It demands precision, a profound understanding of the economy, and flexibility to alter policy

[ultrloa]

Re: Is increase in minimum wage a good method to fight inflation?

Not an economist here, but increasing the minimum wage is one of the solutions to at least lessen the burden on the people that they're experiencing. Prices of goods are increasing, food prices are increasing, prices of commodities are increasing, and prices of all that have prices are increasing.

Inflation will not be removed so I guess we can say that increasing the minimum wage will be the forever solution of the government. Well, this is not a one-stop solution because it also has a cons. Increasing minimum wage means higher expense for those business especially those manufacturing companies who are paying lots of employees. How they will cope up with the increase wages? Increasing the price of their goods which will affect us consumers in the end.

At the end of the day I believe this will be a cycle. Inflation happens, government will increase minimum wage.

Indeed since for having an increase they can catch up with rising prices of basic needs that's why its important for government to became proactive on this issue so that they will make sure that their citizen will never suffer from huge trouble brought up by inflation.

Inflation will not be taken out for this action but at least the worker have enough funds to cover up their needs. Also at current situation where everything need to do action to create another income stream maybe its best for people to find multiple sources of income so that they will not badly hurt once inflation rate rise up again since they have a lot of option to cover up their needs also for sure they will not experience any hunger for taking such good actions.

[bitLeap]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It won't resolve completely and it won't last long either. Inflation cannot be fought or avoided because if the level of consumption of goods and services is now decreasing due to fulfilling people needs such as increasing public transportation, they are now complaining because the wheels of the economy are not turning for them because everyone already has their own transportation. then the level of shopping in offline stores is getting quieter, traders are also complaining about the same thing amidst demands to pay rent on time but the level of people purchasing power is massive in the online shopping sector. The unstable economic cycle and if you want to increase the minimum wage will still not have a significant impact if people's habits now start to change.

[Coyster]

An increase in minimum wage would not stop inflation in a particular country, but it would somewhat help workers to survive in a dire economic situation as they now have more money to spend. Increasing minimum wage during a serious economic crisis is similar to handing our palliatives to people, it would not help to stop inflation, but it brings temporary relief to the people.

Fighting inflation is not as easy as just increasing the nations minimum wage, there must be a change in economic policies and the country must work on production, rather than just consumption, local production and export of locally produced goods is one way to better an economy and fight inflation, and thus increase the purchasing power of the people.

[philipma1957]

Think of the top 1 percent. They must be drained of wealth to stop inflation.

Raise taxes on the top 1 percent punish them for excess wealth. They cause inflation as a weapon against the bottom 99 percent.

No more complicated than this.

Of course making the top 1 percent lose wealth no longer happens world wide so the bottom 99 percent suffer.

[Chilwell]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think when we talk about Inflation it covers everybody both government workers and other citizens, increasing minimum wage can never be the solution for inflation, because those that will benefit from minimum wage are only those that are involved in government sector and inflation affect the entire community. The economy of my country is very bad right now they have not talk about minimum wage and already price of things have started pushing up because of the inflation, we will have double high price if minimum wage is implemented and minimum wage only affect workers alone, the statistics of government workers are not up to 25% of the population of the country, so let assume 25% have been taken care of what about the Remaining 75% of the population and they are all involved in paying tax to the government so what do they gain due to high cost of commodities.

[philipma1957]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think when we talk about Inflation it covers everybody both government workers and other citizens, increasing minimum wage can never be the solution for inflation, because those that will benefit from minimum wage are only those that are involved in government sector and inflation affect the entire community. The economy of my country is very bad right now they have not talk about minimum wage and already price of things have started pushing up because of the inflation, we will have double high price if minimum wage is implemented and minimum wage only affect workers alone, the statistics of government workers are not up to 25% of the population of the country, so let assume 25% have been taken care of what about the Remaining 75% of the population and they are all involved in paying tax to the government so what do they gain due to high cost of commodities.

raising minimum wage raises prices and makes the top 1% get richer.

so anyone wanting to raise the minimum wage is an enemy of the lower class.

making a disincentive to become super rich is the best way to stop inflation.

but as I said it won’t happen as the super rich have the media locked down.

[HeRetiK]

Think of the top 1 percent. They must be drained of wealth to stop inflation.

Raise taxes on the top 1 percent punish them for excess wealth. They cause inflation as a weapon against the bottom 99 percent.

No more complicated than this.

Of course making the top 1 percent lose wealth no longer happens world wide so the bottom 99 percent suffer.

While I agree with the sentiment -- both regarding how wealth should be taxed after a certain limit and how inflation is at this point co-opted/weaponized to reallocate capital to the top -- I'm not quite sure how taxing the wealthy in itself would help fight inflation. By reducing government debt and thus indirectly reducing the money supply maybe, but we all know that's just as likely to happen as the top 1 percent giving up even part of their capital and power.

raising minimum wage raises prices and makes the top 1% get richer.

Prices get raised regardless of whether minimum wages get an increase or not. Sure, they would use it as an excuse for raising prices further, but they will do so regardless.

[franky1]

Prices get raised regardless of whether minimum wages get an increase or not. Sure, they would use it as an excuse for raising prices further, but they will do so regardless.

check any retail good. look at the manufacturer. look at the investors of product manufacturing.
and you see the same couple main investors
take pepsi, Kellogs:
vanguard
blackrock

take coca-cola, Kraft:
Berkshire Hathaway
blackrock

vanguard, blackrock, and BH want to make stock market profits, so companies selling food and drink need to make profits, so prices need to go up to keep investors happy

[Casalania]

Raising the minimum wage may provide some temporary relief to workers struggling to cope with rising prices of goods and services. However, this measure alone is not a comprehensive solution to the problem. It fails to address the root cause of the issue and is therefore not an effective strategy in fighting poverty.

it instead might increase inflation to be more rampant because the worth of money in the perspective of people also decreasing as mentioned by OP but yes it will give relief temporarily but overall its just delaying problem that needs to be focused, the solution would be best if the government could incentivize production on certain thing like food by giving tools and so on so that the price of food gonna decrease or anything out there that are becoming expensive due to inflation because the supply is high.
just basic economic that if the supply vastly surpass the demand it will automatically become cheap enough, by boosting production, certainly it will not make the people working in that sector suffer.
but well, i guess government knows best about what to do but sometime implementation is just hard.

Focusing only on specific areas like food can cause prices of other products and services to increase. This can lead to an imbalance in the economy. A better solution would be for the government to create a more comprehensive plan or to reduce their spending. They could also increase taxes to discourage excessive spending by individuals.

[Briankimp1]

Minimum wage increments is not and will never be a method of fighting inflation it’s a helpless plunge by the government to ease inflation, It only ends up causing more inflation there are methods that have proven effective like reduced importations and increased exports, reduction of salaries of high level government officials and also reducing expenditure this all depends on your nation’s population man power and technical knowledge,
With the right strategy and implementations inflation can be controlled and also extinguished.

[wxa7115]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

The minimum wage is not really a way to fight inflation and instead it is just a way to set a floor to the pay businesses can give to their employees.

If a government tried to use the minimum wage to fight inflation, businesses will react to this by lowering the hours each employee works for them or by firing several of their employees and ask the rest to do more for their new and higher salary, which will create unemployment and will aggravate the situation of all of those people.

[Poker Player]

More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

If it is such a good system, how is it that Venezuela is the country in the world that has raised the minimum wage the most and is in ruins?

The only way it is useful to raise the minimum wage is if the country is productive, is rich, and can cushion the bad effect. What happens is the opposite of what you describe, which is what leftists usually defend: instead of stimulating the economy with this increase, what you do is to generate inflation, and in most cases based on debt, a debt that the state will have to repay with interest.

What happens after a year of raising the minimum wage? It has to be raised again because people in real terms are poorer than before the increase a year ago.

In other words, it is a shitty "solution".

[radjie]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

I think increasing employee salaries or wages is only useful for helping citizens fight the effects of inflation. And balancing employee needs so that they remain met even in inflationary conditions. Meanwhile, regarding inflation itself, actually increasing employee wages will have no impact at all if it is to overcome inflation itself. Because fighting inflation only has to be done by withdrawing excess money in circulation or increasing the level of productivity of goods needed so that they can still meet everything that consumers need. Because usually inflation is also triggered by the scarcity of a good or commodity. Such as the food crisis and the scarcity of petroleum. So increasing the minimum wage for employees only helps employees survive inflationary conditions but cannot overcome inflation itself.

Yes, to be more precise, increasing wages is able to mitigate the impact of inflation itself so that the economy can turn around at the social level.  As you said, the impact of inflation can occur due to the scarcity of a good or commodity. This cannot be said to fight inflation but rather help alleviate the impact that occurs.

[ndutndut]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage above inflation is the right thing to do when the country is not experiencing serious problems. In stark contrast to two years ago, many countries were experiencing serious problems due to the Covid virus problem. so that people are aware and understand that the economy is in decline and everyone is experiencing problems in the financial sector, including companies.

So it is unfair if the current minimum wage increase is above inflation. All governments are aware that this will be detrimental to companies so that in the end many will go bankrupt if there is an increase in the minimum wage or many companies will carry out massive layoffs because they cannot afford to pay employee salaries. Besides, when the minimum wage is increased, it doesn't have much of an effect because the prices of basic commodities also increase, you could say it's the same. So the conclusion is that increasing salaries during inflation is not a solution to fight inflation, but this is only to reduce pressure on employees who are affected by the increase in goods due to inflation.

[JariKriting]

fight inflation by stabilizing prices, not increasing employee salaries. because increasing employee salaries only increases people's purchasing power, not reducing inflation or lowering prices. The best way to fight inflation is market operations by meeting people's food needs so that prices are controlled so that inflation is controlled so that it does not rise high.

[Asuspawer09]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

It's not really a good way to fight inflation, I mean it is being controlled by the government so we can't really fight inflation because the government is the one who just keeps on printing money whenever they want so if you use fiat money you surely going to get eaten by the inflation on your country because of the dumb system.

Increasing the minimum wage could be a good thing so that people are able to at least survive with the increasing price of their needs, but it wasn't really some kind of solution since inflation is still going to hit unless they could increase the salary to the point where it can go with the inflation at the same time, which is most likely not going to happen.

We cant really do anything about the inflation it is going to exist and we cant stop it, what we can do is just to do alternatives like putting our money on Gold, real estate, Bitcoin, etc. that is not like fiat money.

[Kakmakr]

The purpose of the "minimum wage" are not there to fight inflation, it is implemented to protect the employees from ruthless employers.

You get some employers that will offer a basic salary, but it will be way below the amount that people would be able to make a living. The government stepped in and they determined a minimum wage that must be paid for any employee to protect them againt those employers that wants to put profit before the people that work for them.

Living costs increase every year, so they increase the minimum wage to adapt to the increase in the living cost.

[bakasabo]

Increasing the minimum wage in all employment sectors will only save life difficulties for a while

Or it can even make things worse. Increase of minimum wage means that bookkeeper will recalculate all salaries and company would pay a higher tax (in our country it is called something like "mandatory social insurance"). Employee would earn a bit more each month, but company will pay a bit more tax. Guess where company going to take that "a bit more tax"? By good/service price increase. Which means again inflation.

Increase of minimum wage to fight inflation is government decision to fight inflation with employers hands. This is totally wrong. Employer is not responsible for decision government take, nor can influence on that, yet he is oblige to solve problems government create.

[slapper]

Increasing the minimum wage in all employment sectors will only save life difficulties for a while

Or it can even make things worse. Increase of minimum wage means that bookkeeper will recalculate all salaries and company would pay a higher tax (in our country it is called something like "mandatory social insurance"). Employee would earn a bit more each month, but company will pay a bit more tax. Guess where company going to take that "a bit more tax"? By good/service price increase. Which means again inflation.

Increase of minimum wage to fight inflation is government decision to fight inflation with employers hands. This is totally wrong. Employer is not responsible for decision government take, nor can influence on that, yet he is oblige to solve problems government create.

Doesn't the plot thicken here? In its infinite wisdom, the government uses employers to fight inflation. Not a good logic. Immediate aftermath? Companies scramble to adjust, raising prices. The cure causes more inflation. The policy that was supposed to save purchasing power actually weakens it. Instead of shaping economic policy, employers are puppets. The idea that raising salaries will cure inflation is dangerously simplistic. Sustainable economic plans should replace short-term fiscal tactics

[uneng]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No, because it doesn't mean anything on practice. Here in our country the minimum wage was readjusted in 10% this year, but in counterpart the prices of every goods and services increase much more than 10%, so there isn't real increasement in purchasing power. It's quite the opposite, we are losing purchasing power along the years, as inflation is always suppressing minimum wage's readjustments. Actually, increasing minimum wages is a populist measure by governments who know their illiterate population will think consistent gains are being granted to them by the benevolent government.

If governments wished to fight inflation they would stop printing money, besides encouraging education and self-development among their citizens. However, it's not interesting for government to rule a nation of independent people who are able to think by themselves. To rule among sheeps is always more comfortable... Especially when they feel thankful for minimum wage's increasements which don't bring any real benefits at all.

[Abu-Naim]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing minimum wage of salary earners cannot solve any inflation problem, in fact it will be a catalyst to inflation if care and price control is not put in place.

I am sure you making reference to our country Nigeria; our economic situation is out of hand and increasing workers salaries will not help the situation out. Increasing minimum wage will just help workers to be able to afford goods and services at inflated rate and not to solve any inflation problem.

If the minimum wages is increased, the price of goods will keep going up as they will feel that workers now have money to buy at any amount, as a result, it will make the rate of inflation more higher than it is now.

[poodle63]

fight inflation by stabilizing prices, not increasing employee salaries. because increasing employee salaries only increases people's purchasing power, not reducing inflation or lowering prices. The best way to fight inflation is market operations by meeting people's food needs so that prices are controlled so that inflation is controlled so that it does not rise high.

definitely, just increase the supply, make commodities and food prices lesser by keeping the supply plenty then fluctuation can be kept under the alarming rate.
increasing the salary will just normalize the inflation, making people's purchasing power come back to before but its only temporary until the supply plummet and the price rise again.
but even so, its still hard keeping the inflation from rising higher, as we know every year the rate of inlation is always keep on rising.
it just means that even the most advanced, succesfull government out there still having a hard time keeping up with the rate of inflation.
after all, inflation is like natural with current monetary system.

[franky1]

increasing the minimum wage causes inflation ripple effect.

however offering employees same pay, but with added benefits like discounts with partnering businesses, extra vacations, sickdays(without question EG "mental health days"), or pension contribution matching.
these side benefits can become corporation write-offs for corporation tax purposes thus benefitting the company too.. thus benefiting the employee and employer without raising costs for both

lets dig deeper
lets use vacation days
many think offering vacation days means a business needs to hire more people, or pay other employees for over time to fill in the gap.. however this can be done differently.
such as allowing the employees to secondary market their own vacation days.
that way one employee can gain a extra few days off while the other employee in the deal gets over-time. where these trades are done within the employee pool, instead of the management. thus no extra cost for the business, thus no affect on cost of goods

things like, management can pro-rata employee contributions/production efficiency to the business.
say a employee is suppose to achieve a quote of 2400 items a year(10 per workday(240 workdays)). if an employee manages 2400 in just 235 days. a company could award them 5 days vacation without affecting production rate. which due to being a "free bonus" the employee can give/sell to someone else. thus increase pay if sold, whereby someone else gets the extra vacation days off

..
problems do arise however when minimal effort, inefficient, dead-wood employees expect promotions, benefits, rewards, for not putting in the effort. whereby it starts costing businesses money. whereby it also ruins the incentives schemes to no longer energise employees to work if the dead-wood guys are getting the same benefits as the efficient hard workers.. EG "equality"

[Assface16678]

Yes, definitely, and not just increasing the minimum wage, but the benefits also, in terms of leaves and other things, because taking care of the welfare of employees is as important as a good salary. Because of the continued increase in the inflation rate in the world, increasing the wage of an employee will boost their mood and also increase their productivity at work. This will have good benefits for both the employee and the employer. It can be an easy move in the private sector, but for public or government-based work, increasing the minimum wage will be very hard as there are only allocated budgets for that, but at least the government and public sectors have a lot of benefits.

But let's be real, increasing the minimum wage is a very hard movement for any sector as all the costs are increasing along with the inflation rate, so yeah, I hope they make more minimum wage increases.

[franky1]

But let's be real, increasing the minimum wage is a very hard movement for any sector as all the costs are increasing along with the inflation rate, so yeah, I hope they make more minimum wage increases.

just broad raising minimum wage rate nationally. effects business costs that effect product prices that effect peoples spending costs. causing a circular cycle of then needing to repeat. which is outside of businesses control..

however businesses raising employees pay if the business sees the employees effort/efficiency. where by getting back to a "hard work=higher pay" model that benefits business and employee

[Strongkored]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Salary increases are not carried out by recipients but wage earners, in fact, the government will usually try to protect entrepreneurs by increasing the minimum wage following the wishes of entrepreneurs so it is clear that wage increases will not be able to beat inflation unless we as wage earners try harder to get additional income to invest in the future. so we can beat inflation, but not by spending it now but for the future when the investment has provided large profits which we can also use to return to other investments, compound is the key.

[BD Technical]

A common laborer works hard all day.  Then it is sad for him if he does not get his due.  Because if you work for a company you don't work without your due wages and you can't run your family if you don't get your due wages, if there is inflation then the government is not responsible and those who are involved in the syndicate are responsible.  .
A Labour usually wants to do her job and take care of her family and she can run a good business.  His objective is not his two meals but his objective is to run his household and live comfortably with his family and in that case the government should reduce the inflation.  And the government should.  To control the economy well and give responsibility and dependence on a good honest person.

[Agbamoni]

Increase in minimum wage cannot solve the problem of inflation. If the government wants to increase minimum wage currently it won't be up to 50% increase so what is now the point when the rise in inflation is approximately 80-90% every year. The funny part is that even when the government wants to increase the minimum wage, they don't do that every year it might be every 4 years if not a decade. There are other ways to decrease inflation in a country.

Relying on national resources and increasing manufacturing, exporting of natural resources in the country is one bold step that can help fight against inflation. Since the indigens of a country will not be relying too much on imported goods and services and start patronizing their own productions= firms. I feel this is the best approach. Also putting interest in all of these local production firms will also give way for more employment opportunities giving majority of the youth to have multiple jobs.

[Kliss]

Increasing minimum wage might not directly fight or reduce inflation because higher wages could lead to increased cost affecting price. When wages go up companies often raise prices to cover up extra cost which will still contribute to inflation. Increasing minimum wage will only increase the purchase power that is the amount of goods and services that can be bought with money which will still have impact on the cost of things. A major way to stop inflation is to reduce spending and borrowing rate.

[Hyphen(-)]

fight inflation by stabilizing prices, not increasing employee salaries. because increasing employee salaries only increases people's purchasing power, not reducing inflation or lowering prices. The best way to fight inflation is market operations by meeting people's food needs so that prices are controlled so that inflation is controlled so that it does not rise high.

Exactly mate. Increasing salary or minimum that covers only government workers cannot be the solution to the inflation, it will increase the inflation rate since the government staffs will be able to afford it while others that did not have will keep suffering it.
Moreover, if minimum wages are increased, there will be too much demand of goods, and we know that statistically, too much demand lead to high price of goods and high price is the same as inflation; therefore, to increase minimum wage will go a long way to reduce the hardship but will not bring an end to this inflation.

[justdimin]

Think of the top 1 percent. They must be drained of wealth to stop inflation.

Raise taxes on the top 1 percent punish them for excess wealth. They cause inflation as a weapon against the bottom 99 percent.

No more complicated than this.

Of course making the top 1 percent lose wealth no longer happens world wide so the bottom 99 percent suffer.

I feel like it is not accumulated wealth, but more about income. You can take the money from the richest %1 and distribute it to everyone equally, doesn't make anyone rich anyway, still is a very low number in the end, and only once so if you misspend it once you are done. You can literally get 50 trillion dollars, and spread it to everyone, and it would be gone in a year at most.

However, if you get proper income taxes, and I do not mean like "oh Nike pays no taxes because they have a Shell company" type of stuff, I mean like actually get the taxes from them, make the law in a way that whatever amount of revenue they made, they are still getting taxed on that, not their "profit" anymore. Find a way, when you do that, money will keep coming it forever.

[Synchronice]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

When inflation happens, your increased salary never meets the inflation rate, otherwise inflation would lose its purpose. Why does inflation happen? Because governments print money instead of working to earn it, then you have to pay for this money. They can inflate it without increasing your salary but when it comes to EU and developed countries, it's impossible because people will upset and governments will be in a huge trouble, so, while you print money, at the same time slightly increase people's salary to don't upset them too much.

Inflation and salary increase look like this:
Inflation 2020:____________ |2021| _________ |2022| _____________ |2023| ________________
Salary    2020:_______ |2021| ____ |2023| _______ |2023| ______

You see how it goes?

[franky1]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

When inflation happens, your increased salary never meets the inflation rate, otherwise inflation would lose its purpose. Why does inflation happen? Because governments print money instead of working to earn it, then you have to pay for this money. They can inflate it without increasing your salary but when it comes to EU and developed countries, it's impossible because people will upset and governments will be in a huge trouble, so, while you print money, at the same time slightly increase people's salary to don't upset them too much.

Inflation and salary increase look like this:
Inflation 2020:____________ |2021| _________ |2022| _____________ |2023| ________________
Salary    2020:_______ |2021| ____ |2023| _______ |2023| ______

You see how it goes?

inflation is more based on costs of goods compared to income

EG                2020         2021          2022            2023             2024
hourly rate  ||||||||||   |||||||||||  ||||||||||||  |||||||||||||  ||||||||||||||  (from $10 to $14)
bread:        ||||||||||    |||||||||      ||||||||         |||||||            |||||| (from 10 to 6)

where bread was $1 becomes $2.33
your wage may go up but the amount of bread it gets you is less

[tottong]

However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

An increase in the minimum wage should provide an opportunity for people to face inflation because they can adjust the price of goods to buy.
But if you look at it on a much larger scale, increasing the minimum wage is not the only way to fight inflation because if the relationship between inflation is related to an increase in the price of goods, then the party responsible must make goods stable again.
The simple logic is like that and I see that when inflation occurs, people begin to have difficulty meeting basic needs due to uncontrolled increases.
This step needs to be regulated and certain parties must find ways so that society can compensate.

[franky1]

if a company only says it offers minimum wage increases/promotion pay rises on par with inflation.. find out if you can ask for extra benefits. such as:
child care costs(pretax)
pension contributions
a business car
mileage(fuel expense)
a business debit card (meal expense)
any other things that are tax deductible

also asking for same pay. but hours off earlier in the afternoon if you can stay efficient to meet production quota/targets
(whereby you then dont need to pay for as much child care or have more time in evening to relax, or do side hustles)


before bitcoin made me independently wealthy to early retire. i worked, and as a hobby played with stocks and shares... and would have preferred to have tax deductible contributions to investment funds where employer matched it(pre-tax).. more so than post tax extra money in salary
if i had kids back then i would have prefered my employer(pre-tax) pay for child care vouchers or paid into a nursery/child care sceme
where by it was not an expense that needed to be paid from my post tax salary. thus freeing up more money post tax for me to spend on other needs. without it on paper showing as me getting extra income, thus benefitting both me and employer, as they can claim those expenses as deductibles on their end thus cut down on their tax burden thus keeps costs down, thus not have to raise prices of the goods they sold

asking for pre-tax benefits help.
for instance
if childcare is like $500 on your end. by having an employer subsidise/contribute. you then have $500 free and clear post tax you can spend elsewhere

if your employers pension scheme was say 5% match. where you contributed 10% and they contributed 5%. if they raised the match to say 7.5% you can then adjust yours down to 7.5% so same money went to pensions fund but you paid 2.5% less so then have a bit more post tax to spend elsewhere.. or you kept your 10% meaning 17.5% went into pension. so you got more higher pension later in life

[sekalitas]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage can be one strategy to address inflation, as it helps maintain purchasing power for some workers. However, individual citizens can also take steps to mitigate the impact of inflation by investing their money. Investing can potentially protect the value of your money over time, although it carries inherent risks.

[tbterryboy]

An increase in the minimum wage will ease the burden on the general population that is employed because they will have more money to spend hence they won't face issues from the rising prices, but what about those who are self-employed? Or merchants that are running their shops or businesses? They aren't going to get things for a lower rate by this method which means that will still not be able to earn enough money. Even if merchants do well by having enough profit margin, those who are self-employed or selling their services will still struggle.

So, there must be some solution that will solve the problems of every person in every sector or category and it shouldn't be an advantage for one group and others should still have to go through tough times.

[nngella]

If you are familiar with the production function of economics, which tells that income is highly related to labor productivity, technology, and capital stock.  The equation does not contain variables for inflation which means that inflation is not correlated with the income of an individual or household.

 On the other hand, inflation is highly related to money supply.  Money supply is the amount of money being circulated in the market.  The higher the money being circulated (which means that the central bank prints more money) then the higher the purchasing power of the people which pushes the prices to go high.

[DrBeer]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

The answer is simple - no it won't. The causes of inflation lie in another area. And by forcibly increasing wages, we will get nothing but... an increase in the cost of goods and services produced by those who will get a wage increase. Yes, it will affect the purchasing power of workers who have their wages raised, but it will also increase the cost of goods and services they produce for the rest of the population.... In short, simply raising wages will provide a temporary and limited solution that will not fix the problem

[Mauser]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No, I don't think that increasing the minimum wage is going to do any good for the inflation, because the business owners are not going to pay their higher employee salaries out of their own pockets. All additional costs for the business will be added on top of the product and handed over to the consumer. This is just going to make products more expensive and put more money into circulation. The employee itself has more money to pay for all the expensive products and there is no pressure to lower prices again. In my opinion it would be a better approach to make it easier for competitor companies to enter the market and put more pressure on monopol business. New competition is going to push the prices down again and lower inflation. Unfortunately I don't see politicians doing it and are more concerned with handing out gifts to secure their next election.

[Arenga pinnata]

fight inflation by stabilizing prices, not increasing employee salaries. because increasing employee salaries only increases people's purchasing power, not reducing inflation or lowering prices. The best way to fight inflation is market operations by meeting people's food needs so that prices are controlled so that inflation is controlled so that it does not rise high.

I agree with you because increasing employee salaries could even trigger an increase in production prices and could cause a company affected by inflation to go bankrupt more quickly because it has to pay employees more. And if government officials also increase the salaries of government officials, then this could also trigger the printing of more money and this will not overcome inflation but will increase inflation to a more severe level. Increasing employee salaries is only necessary to avoid a recession. but fighting inflation is not a solution.

[nngella]

fight inflation by stabilizing prices, not increasing employee salaries. because increasing employee salaries only increases people's purchasing power, not reducing inflation or lowering prices. The best way to fight inflation is market operations by meeting people's food needs so that prices are controlled so that inflation is controlled so that it does not rise high.

I agree with you because increasing employee salaries could even trigger an increase in production prices and could cause a company affected by inflation to go bankrupt more quickly because it has to pay employees more. And if government officials also increase the salaries of government officials, then this could also trigger the printing of more money and this will not overcome inflation but will increase inflation to a more severe level. Increasing employee salaries is only necessary to avoid a recession. but fighting inflation is not a solution.

Stabilization of the prices can only be achieved through monetary policy.  The central bank will sell their government bonds to the open market making the money in circulation lesser the the interest rates higher.  The higher the interest rates means that people will encourage to save and put their money in the bank.  This will result to lesser money in circulation and the lesser demand of goods which decrease or minimize inflation.  This is the reason why the government and central bank must not be governed by one entity only.  The Government will handle the fiscal policies (i.e. taxation) while the central bank will focus more on the monetary policies (i.e. money supplies, printing of money).

[Natsuu]

Increasing the minimum wage is a good start but to really tackle inflation, we might need more tricks up our sleeve. Like investing in education, making sure people have the skills for better jobs and throwing in some smart social programs. It's all about finding that sweet combo to make sure everyone gets a fair deal without causing other problems

[tygeade]

Increase in minimum wage cannot solve the problem of inflation. If the government wants to increase minimum wage currently it won't be up to 50% increase so what is now the point when the rise in inflation is approximately 80-90% every year. The funny part is that even when the government wants to increase the minimum wage, they don't do that every year it might be every 4 years if not a decade. There are other ways to decrease inflation in a country.

Relying on national resources and increasing manufacturing, exporting of natural resources in the country is one bold step that can help fight against inflation. Since the indigens of a country will not be relying too much on imported goods and services and start patronizing their own productions= firms. I feel this is the best approach. Also putting interest in all of these local production firms will also give way for more employment opportunities giving majority of the youth to have multiple jobs.

Depends on the nation, and depends on the average income. For example, in the USA people make around 58k a year right now, that may look great, but someone who works minimum wage could earn as little as 7.25 dollars. Not that many are left like that, because if you offer people that amount, you will not find anyone decent at all, you will left without employees.

But, let's assume that it's true, and you do get 7.25 per hour, that is the minimum wage right now. At 40 hours a week, you make 290 dollars, 52 weeks a year that would make it 15k. In a nation with 58k "average" income, median that is, 15k is poverty and nothing more. Of course people do not make that all too commonly, but if you increased that 100% higher, double the minimum wage, you would still be fine.

[tyz]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Logically, exactly the other effect should occur. If salaries are increased, this has a rather negative effect on inflation because many service and production jobs for basic and cheap goods are done by people with low wages. If personnel costs rise there, this has a direct impact on prices, which in turn causes inflation to rise.

[Renampun]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

carelessly increasing the minimum wage will only create new problems, the logic is simple, when the minimum wage is increased then entrepreneurs will reduce their workers, this is done to prevent excessive company spending, if entrepreneurs don't do that then they will only create a time bomb then It is not easy to increase the minimum wage, there are many considerations that must be studied more deeply.
To overcome inflation, the only one who can come up with a solution is the government, they must provide relief for entrepreneurs and also assistance for workers on minimal wages.

[Lorence.xD]

Increasing the minimum wage is a good start but to really tackle inflation, we might need more tricks up our sleeve. Like investing in education, making sure people have the skills for better jobs and throwing in some smart social programs. It's all about finding that sweet combo to make sure everyone gets a fair deal without causing other problems

To encounter inflation, an economy must increase the resources to match up with the demand.With this, a country should support agricultural industries of its own to generate more and to avoid scarcity of goods and services. There is just an increase with the prices especially with daily necessities, because of high demand and with low supply. Everything, especially with third world countries, are having soaring market prices. Increasing the wage will indeed help people to cope up with the phenomenon but will not entirely resolve it. It is a matter of finding the root cause; many countries prefer importation of goods than with exportation which is already enough to trigger skyrocketing of marketable needs. Almost all of the countries have industrial aspect, but not all governments of a country prioritizes prevention of such unwanted economic situation.

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

carelessly increasing the minimum wage will only create new problems, the logic is simple, when the minimum wage is increased then entrepreneurs will reduce their workers, this is done to prevent excessive company spending, if entrepreneurs don't do that then they will only create a time bomb then It is not easy to increase the minimum wage, there are many considerations that must be studied more deeply.
To overcome inflation, the only one who can come up with a solution is the government, they must provide relief for entrepreneurs and also assistance for workers on minimal wages.

Entrepreneurs will just be a short term aid and owners are the ones which will benefit more. Monetary policy is the only way out of inflation however it will include industrial partnerships to control the ideal and mentioned policy in particularly with inflation. Days keep on getting tougher and rough. With capitalism, more people will indeed have job opportunities but prices of marketable goods will still remain.

[lixer]

To reduce inflation, the total wealth of the country must be increased. In that case, how many steps are needed, such as increasing the amount of remittances in any country, reducing inflation in that country. Also, the amount of defaulted loans should be reduced, currency of the country should be avoided from being smuggled abroad. The country needs to be manufacturing oriented and much more export oriented. Raising the minimum wage will never stop inflation. Raising the minimum wage may benefit some people but is not a permanent solution.

If only that's how easy things works, then great but unfortunately not. The most effective way to not default a loan is to not make a loan. It may be hard at first but there must be a way to make money in another way.

We should try and if ever we can't help but to make a loan, we must be sure that we can pay it on time because there are consequences about it, although if we keep thinking about it, it might motivate us to make enough money before our due dates. Raising the minimum wage is a dream of the workers. It may not totally curb the inflation but it helps the people to survive it better, yet it might also bring a negative impact on the company or the economy of a country.

[slashz9]

I think in the end it will be the same, when the minimum wage rises, people will compete to buy, in the end if an item becomes scarce and prices rise, I don't know the comparison but it won't be much different.
so this step is the same, it just takes a little longer.
inflation will continue to rise no matter what, unless fiat money is eliminated.

[topbitcoin]

In several regions and countries, there is currently economic inequality in society, where income is not commensurate with expenditure. In these years, energy and food prices have continued to soar, while people's incomes have remained the same, because there has been no increase in the minimum wage. And this will clearly cause the economic cycle to slow down, because in circumstances like this most people will choose to live frugally and also save, which in the end can cause people's purchasing power to decrease day by day. and we can see for ourselves how currently restaurants, entertainment venues and tourist attractions are starting to lack visitors, even small and medium businesses selling on the side of the road are also being affected because people rarely buy snacks.

To deal with inflation, increasing the minimum wage is one solution, but of course companies will think twice if they have to increase the wages of their workers, considering that the global market is not doing well and is full of uncertainty, meanwhile when a company increases the workers' wages, of course, this will only increase the burden on the company.

[shield132]

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

[LastKiss]

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

It's not strange when the government said the inflation is 10% but actually around 20%, that's because not all items are up more than 20% let's say in my place vegetables are up for 5% and rice up for 1% so the government will say that the inflation will be around 3%. Why we always feel that the inflation from the government is different from the reality because our daily needs are the one got big inflation.

Raising the minimum wage is good when the companies are able to raise their worker's minimum wage if they can't raise their minimum wage some workers will get fired from the company due to a lack of funds to pay the worker, in the end unemployment rate will increase and many people will lose their purchasing power.

[_BlackStar]

The minimum wage must be adjusted to inflation and in many countries demands for increases in the minimum wage often occur every year because workers feel they are not getting paid worth it with their work. I guess it's just a solution that the government and the company that employs you consider - but sometimes they are reluctant to raise it for various reasons.

It doesn't make sense to keep the minimum wage the same when inflation is rising - workers not only want to work to live, they also need financial well-being. In my opinion - increasing the minimum wage is a solution for employees, while the government can think of other solutions to reduce inflation.

[invo]

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

It's not strange when the government said the inflation is 10% but actually around 20%, that's because not all items are up more than 20% let's say in my place vegetables are up for 5% and rice up for 1% so the government will say that the inflation will be around 3%. Why we always feel that the inflation from the government is different from the reality because our daily needs are the one got big inflation.

Raising the minimum wage is good when the companies are able to raise their worker's minimum wage if they can't raise their minimum wage some workers will get fired from the company due to a lack of funds to pay the worker, in the end unemployment rate will increase and many people will lose their purchasing power.

That's correct. In the long run, employers will lose their purchasing power due to inflation. If their salary is not adjusted to match the inflation rate, they will remain stagnant without any improvement unless they find an additional source of income, which may not be a viable option for many employees. However, during this scenario, they will have no other choice.

[STT]

Unfortunately  its not an easy solution that works.  Cost of labor is a cost in the economy like anything else.   Workers can be paid more but also efficiency must increase in order to combat inflation.   If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere.  Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

[poodle63]

Unfortunately  its not an easy solution that works.  Cost of labor is a cost in the economy like anything else.   Workers can be paid more but also efficiency must increase in order to combat inflation.   If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere.  Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

strengthening the currency might be better idea, just try to make the economy more alive through incentives for business even though it seems like government trying to give money to business, but realistically speaking its those business that keep the economy alive, just incentivize with stricter policy that they won't misuse the money instead its to grow the business that might be viable, increasing wage will just become a temporary solution where at no time the purchasing power would plummet again because as we know it if the minimum wage increase price of commodity and food will also increase later on.
so its not truly a good solution, I think the best solution would be incentivizing to keep the economy alive also try to strengthen that currency.

[mirakal]

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

Increase in minimum wage may still not be enough to fight inflation but it could lessen the financial struggles of the employees knowing their purchasing budget has increased a little despite of the increasing prices of basic commodities. Although it cannot totally beat inflation but I think it can still be a lot helpful to those employees who are working hard just to sustain their daily needs.

The government is actually responsible to manage the country's inflation but seeing this current inflation will stay for good, I guess the government can no longer beat this inflation. The best they can do is to increase the minimum wage so that the citizens will lessen the financial pressures as well.

[Oasisman]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

[Volimack]

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

[Xampeuu]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

What happens in our society is that employees always demand salary increases on the grounds that necessities are becoming more expensive. There is indeed a return if employees comply with their wishes, of course product prices are getting higher, as if they are rolling like waves, which will actually increase the inflation that occurs. I think the government has done various things to suppress it, but this is only suppressing it, not stopping the rate of inflation

[Spaceman1000$]

Unfortunately  its not an easy solution that works.  Cost of labor is a cost in the economy like anything else.   Workers can be paid more but also efficiency must increase in order to combat inflation.   If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere.  Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

[spectre71]

Unfortunately  its not an easy solution that works.  Cost of labor is a cost in the economy like anything else.   Workers can be paid more but also efficiency must increase in order to combat inflation.   If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere.  Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

This will never work, ever.  Say you own a business and min wage goes up. Where does that extra money come from? You have to increase prices of your products accordingly. Additionally you cut the weak employees and increase the load accordingly on the now higher paid ones. As an employer at this time, break's are going to be precise and no phone time at all.

The best way to fight inflation? Don't elect morons like Biden who print money ad nauseum

[moneystery]

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

....

that's right, increasing the minimum wage will not solve the problem because it will have an impact on other things which will make the problem more complex and it will cause inflation to continue and even get worse. what should be done in this case is to make targeted policies to citizens, for example subsidies for basic commodities and supply chains, increasing interest rates, and several other policies that the government can take. because only with well-targeted policies can the problem of inflation be overcome.

[G_Besar]

That's correct. In the long run, employers will lose their purchasing power due to inflation. If their salary is not adjusted to match the inflation rate, they will remain stagnant without any improvement unless they find an additional source of income, which may not be a viable option for many employees. However, during this scenario, they will have no other choice.

In inflationary conditions or scenarios, we are really forced to look for additional sources of income if employees do not receive a salary increase adjusted to inflation conditions by their bosses. Because people who still want to work with their usual salary will certainly not be able to survive if inflation conditions continue for a long period of time, so their choice will continue to be looking for other sources of income, even though they feel very forced and difficult.

And if entrepreneurs lose their purchasing power due to inflation, it will also have an effect on the condition of companies that provide goods or products that previously were often purchased by entrepreneurs. So that difficult conditions will also be felt by the company and can result in a reduction in employees along with a reduction in their production capacity due to such conditions. Finally, employees who have lost their jobs have to think about getting another job in order to continue earning income in difficult conditions.

[o48o]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Inflation is a symptom for several things, but it's not necessarily a bad thing, as inflation at reasonable rate is to be expected as it's build into core of our financial system.
Prices have been rising since the start of fiat money, and every fiat money out there is build to have reasonable inflation. You can't or shouldn't really combat that, but you can combat inflation that's got out of control, because that can lead to hyper inflation.

And there will be times when inflationary rates need to be exceptionally high, that's normal in times of crisis, as you can think of it like a fever that needs to be high enough to kill a flu virus, but not the host.
That isn't a perfect analogy for it, but closest i can think of. Inflation is used stimulate the economy, like raising minimum wage as well. Economy is not doing well when people keep hoarding and holding, no matter what hodl meme tells you.

If you haven't already, i suggest you'll read about different kinds of economic systems, like keynesian, austrian, and monetarism. You don't have to invent a wheel again as there are lots of people out there who have already studied this subject.

[macson]

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

This will never work, ever.  Say you own a business and min wage goes up. Where does that extra money come from? You have to increase prices of your products accordingly. Additionally you cut the weak employees and increase the load accordingly on the now higher paid ones. As an employer at this time, break's are going to be precise and no phone time at all.

The best way to fight inflation? Don't elect morons like Biden who print money ad nauseum

there's no need to debate, all countries have the potential to be affected by inflation and the figure of a leader plays an important role in getting their country out of the possibility of inflation occurring, the us is a strong country but they have a president who doesn't know how to work lol.  currently, there is a lot of unemployment and i continue to monitor that there are many large companies that are laying off their employees, this is what should be avoided, if you increase the minimum wage then entrepreneurs will suffer, they are encouraged to fire and make their employees more efficient, raising the minimum wage is really a bad decision hard, it will never work.

[Adreman23]

My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

[boty]

My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

That's right, by creating more new money this will certainly make inflation worse and it will be more difficult for people to meet their needs because prices are unstable and for those who don't have a fixed income it will be even more difficult to meet their needs, if taxes are increased. against companies and governments not choosing to create new money would certainly be better because this can help economic growth and also people must have skills that they can sell to cover their needs when inflation occurs.

[dunfida]

My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

That's right, by creating more new money this will certainly make inflation worse and it will be more difficult for people to meet their needs because prices are unstable and for those who don't have a fixed income it will be even more difficult to meet their needs, if taxes are increased. against companies and governments not choosing to create new money would certainly be better because this can help economic growth and also people must have skills that they can sell to cover their needs when inflation occurs.

Government aware of that and we do know on whats the cons of printing out more money which it would really be having that huge inflation and we've seen on what happened on Venezuela.
Speaking about personal approach on fighting inflation then it would really be only way of having more source of income on which you could really be able to make yourself that at least be able to sustain
or simply having that counteract on such situation. If you are on minimum wage then it would be best that you should find up another source of income too which would be adding up into your
current income on which you wont really be that making yourself wary about having those inflation problems. Only to those who dont have plans will really be that suffering and could be able to felt out
those inflation effects.

[Miles2006]

Increase in minimum wage can help in some certain extend but can't fight against inflation fully, when the price of goods keeps increasing weekly due to poor economy structure workers still can't cope even with an increase in wages. The best here is to tackle the problem and find a way to handle such problem cause if price of goods keeps increasing it will definitely affect everyone and it takes time for the price to fall back rather the price keeps increasing and not just workers but traders will face same challenges.

[YOSHIE]

Is increase in minimum wage a good method to fight inflation?

As far as I know, the minimum wage only has an effect on their respective personal economies in boosting financial/individual economic income. My understanding is that the minimum wage is not a method to fight inflation, because these two factors have two conflicting methods.

The fact that the minimum wage received by individuals is no guarantee to stabilize the inflation that occurs, they still cannot fight inflation, I think the minimum wage has nothing to do with the influence on inflation.

[Alpha Marine]

Increase in minimum wage can be used to ease the pressure of inflation that increase in price of goods and services have on government workers. If the minimum wage has been increased, this will help the government workers to be able to be able to have more money to pay for goods and services after there have been rise in the cost of goods and services. But this is not the way to fight inflation, it is just a way to reduce the effect of inflation on government workers.

An increase in minimum wage doesn't favor government workers that much in the long run. Inflation is simply the skyrocketing of prices in an economy.
One thing that causes inflation is "too much money" in the economy. When too much money is chasing few goods, the prices of those goods go up.
Now, let's imagine the government increases the minimum wage of the country, that means the purchasing power of the people has increased, which means demand for goods and services will increase and we all know that "the higher the demand of a commodity, the higher the price of that commodity". So that means inflation will just increase, thereby defeating the purpose of increasing the minimum wage. And the higher the inflation rate, the more the currency loses value. In no distant time, the value of the previous minimum wage would be the same as the value of the new.

The government should look for the factors that are causing inflation in the country and tackle those factors. Increasing the minimum wage without fighting the reason for the inflation is a waste of time.
Increasing the minimum wage is just a thing a bad government does to keep its party in power. They use that to buy the hearts of the masses when in reality, they've done nothing.

[batang_bitcoin]

Increase in minimum wage can help in some certain extend but can't fight against inflation fully, when the price of goods keeps increasing weekly due to poor economy structure workers still can't cope even with an increase in wages.

Yes, it can help but that's the end of the help that you can get from the government and with your employer. After having an increase, that's all going to be your own battle and you need to fight against it on your methods that you know. Looking for side hustles and other ways to increase your income will help you deal with inflation. That's what will set as the reality that you have to come together along with the inflation and also with your expenses so as your cash flow.

[Maslate]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

Let’s just accept that inflation is here to stay. And even if that is a job of the government to beat this inflation, it’s undeniable that we are the ones suffering the most. So asking for a minimum wage increase can help a lot to ease our sufferings financially and emotionally. That’s the least a government can do to help us even if we all know that inflation will stay for good probably.

[bettercrypto]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Have you ever heard that the solution was to increase wages for employees in all countries around the world? agree because, in my research, I have never heard of anything like that, to be honest. Because if that method were effective, all the countries around the world would have done that for sure as a solution.

That's why, in reality, it's not easy or that easy for a company, especially for private companies. If they do that, for sure, there will be others who can close down. Instead of helping to provide jobs, there will be many more people who will lose their jobs. work. Therefore, that will not be an effective solution for inflation.

[barisbilgili]

Have you ever heard that the solution was to increase wages for employees in all countries around the world? agree because, in my research, I have never heard of anything like that, to be honest. Because if that method were effective, all the countries around the world would have done that for sure as a solution.

That's why, in reality, it's not easy or that easy for a company, especially for private companies. If they do that, for sure, there will be others who can close down. Instead of helping to provide jobs, there will be many more people who will lose their jobs. work. Therefore, that will not be an effective solution for inflation.

It is not easy to do this and it is not the only solution, the government must also regulate the prices of goods so that they are affordable because if the focus is only on increasing employee wages then there will be many things sacrificed.
Increasing employee wages might be an effort to fight inflation, but it must be realized that not all countries can do this.

Regarding job loss or the lack of job opportunities limited by the company, it is already included in management in minimizing expenses by the company itself.
I don't think it has any influence on the policies created to fight inflation.

[JayTrain]

In my view, raising the minimum wage to fight inflation has pros and cons. On one hand, it can improve the standard of living for low-income individuals and contribute to economic growth by increasing purchasing power. On the other hand, it may lead to higher costs for businesses, which in turn can result in price increases for goods and services, ultimately exacerbating inflationary pressures. It is important to consider all aspects of this issue and make decisions based on a comprehensive analysis of the economic situation.

[Albarq]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Have you ever heard that the solution was to increase wages for employees in all countries around the world? agree because, in my research, I have never heard of anything like that, to be honest. Because if that method were effective, all the countries around the world would have done that for sure as a solution.

That's why, in reality, it's not easy or that easy for a company, especially for private companies. If they do that, for sure, there will be others who can close down. Instead of helping to provide jobs, there will be many more people who will lose their jobs. work. Therefore, that will not be an effective solution for inflation.

an increase in the minimum wage for workers will actually not solve or reduce the level of the inflation problem. In fact, people's purchasing power will become weaker and the purchasing power of money will become less, thus the economy will weaken even if the minimum wage is increased to increase people's purchasing power but it will be difficult to recover. return.

[Zonyebuchi]

Well as for me, I think increase in minimum wage cannot fight inflation in any way. As we all know: Inflation is simply the continual increase in price of goods and commodities in the market.If there is increase in money supply without checkmating other factors like: High cost of production_ High cost of transportation of goods_ Increase in exportation than importation _High tax Levi on production and importation_ Higher demand and shortage in supply non governmental regulatory agencies to checkmate the prices that things are sold in the market and those deliberately hiding the products and goods that are meant to be displayed in sufficient quantities in the market for consumers e.g. The petrolatum products as the case may be.

[Yaqs15]

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

  I think i support your motion, even in my own country it happened like that, mine is even worse because citizens were suffering of this inflation of a thing and government did nothing about it. The only thing government could just say is fake promises. Almost a year now,   even minimum wage have not been announced, they are still deliberating on it.  Despite the fact that minimum wage is not the way out, because is just small population of the citizens that are civil servants. So if their wages are increased, it would only cause more damage to the rest of the people because the demand will be high which make the price to be high as well.

In my view, raising the minimum wage to fight inflation has pros and cons. On one hand, it can improve the standard of living for low-income individuals and contribute to economic growth by increasing purchasing power. On the other hand, it may lead to higher costs for businesses, which in turn can result in price increases for goods and services, ultimately exacerbating inflationary pressures. It is important to consider all aspects of this issue and make decisions based on a comprehensive analysis of the economic situation.

Government increasing minimum wage because of inflation, is like he's only playing with the sense of the citizens. because it solves no problem, it makes it worse.
         what about those that are not civil servants? What provisions does the government has for them?
And also even if this minimum wage is been done, some time, not all the level of the government complies like state and local government don't want to comply with the federal government when it comes to the issues like increments in the wages of the civil servants. Which makes it not to be balance even between the civil servants themselves.

[Hispo]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Increasing the minimum wage by its own won't do anything to increase the health of the economy of a country, I am sure of it because it is something we lived here in Venezuela for several years. We went through one of the most savage inflation periods in modern history and yet, all the president and the central bank could do was to increase the wages, which was useless, since the price for good and services also increased. It was one of the darkest times for this country.
A chocolate bar could cost like millions of our local currency and we had to remove about eleven zeroes off our banknotes because the prices of all things were getting ridiculous.

In my opinion, the best way to tackle inflation is to step up production of good an services, make the people of the rural zones to be able to yield as much food as possible, so the prices will find a good balance. Only when the production is high enough, then one should think about increasing the minimum wage, in order to stimulate consumption by the average worker, otherwise inflation will continue to grow and get going.
There is a good reason by the countries of the first world are also called developed countries or industrialized countries, it is because the rate of production of vital good and services in those places is high, so inflation can be easily controlled through mechanism like adjustment to interest rates, instead opting to print more money.

[shinratensei_]

In my view, raising the minimum wage to fight inflation has pros and cons. On one hand, it can improve the standard of living for low-income individuals and contribute to economic growth by increasing purchasing power. On the other hand, it may lead to higher costs for businesses, which in turn can result in price increases for goods and services, ultimately exacerbating inflationary pressures. It is important to consider all aspects of this issue and make decisions based on a comprehensive analysis of the economic situation.

there are many problem with it just like how economy works in an nutshell try to solve this one problem then other problem arise, as much as I agree with minimum wage increase, the price of goods will just also gonna increase alongside the increase of minimum wage, the additional money that the workers got just gonna get balanced out by the supply and demand, thats usually how it become in the long run.
but I guess government can have other solution to solve this problem but i'm not so sure this problem can be solved easily.

if government can intervene the prices of basic goods, subsidizing the low income household I think it will be more effective but with controlled approach, if not it will also have the same effect as raising minimum wage, the increase of inflation rate.
just like how housing crisis happened across the world where people with average salary could only dream of owning a property, this also need to be intervened by government and in a good way to keep the price low. thats just my 2 cents.

[ancafe]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

As one solution, maybe that is true because an increase in the minimum wage can provide convenience for the whole community, but it is much more important how the government can make the prices of necessities more stable. For the record, it is not easy to control goods in the market because there are those who play a role in seeking profit amidst the difficulties experienced by the general public. This is where the government's role is much more effective in controlling because they have accomplices to reach a wider reach.

Imagine that the minimum wage never increases and goods continue to increase in price and the next question is how can people meet their living needs amidst conditions like this? Decreased purchasing power will also have an impact on farmers, because the harvest results will result in the absence of value in the offer to buy agricultural products so that they are used to buy them at cheap prices by distributors.

[Spaceman1000$]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Have you ever heard that the solution was to increase wages for employees in all countries around the world? agree because, in my research, I have never heard of anything like that, to be honest. Because if that method were effective, all the countries around the world would have done that for sure as a solution.

That's why, in reality, it's not easy or that easy for a company, especially for private companies. If they do that, for sure, there will be others who can close down. Instead of helping to provide jobs, there will be many more people who will lose their jobs. work. Therefore, that will not be an effective solution for inflation.

I get your point, the whole idea of the increase in minimum wage is to help increase the purchasing powers of the citizens as against a rising cost of goods and services. Inflation is one economic issue that devalues the take home pay of most workers and it's something that must be addressed, for private company, there's a way they can go around it by modifying the salary scale of the workers on the lower level, in a bid to help them balance up a little, since they might not have the resource to upscale everybody's take home.

[Baki202]

In my view, raising the minimum wage to fight inflation has pros and cons. On one hand, it can improve the standard of living for low-income individuals and contribute to economic growth by increasing purchasing power. On the other hand, it may lead to higher costs for businesses, which in turn can result in price increases for goods and services, ultimately exacerbating inflationary pressures. It is important to consider all aspects of this issue and make decisions based on a comprehensive analysis of the economic situation.

Increasing the minimum wage will better the life of civil servants but the challenge is that the same time it will also affect the price in the market, and to me increasing minimum wage is not a good way to fight inflation, the better way to fight inflation is through policies to be able to control the price and in other for the government to be able to control the price is to also be part of the manufacturer, that way there will be competition in the market, that way they can regulate the price better, so minimum wage increase is not a remedy to me there other options affordability is the goal. And there are people in the government that can make this things happen but hell no they don’t care we all just hope for a better world.

[kotajikikox]

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No not really because as the price of commodities rise due to inflation no matter how much money you earn its value would be close to nothing. I remember watching a video where in there is a country and the inflation is so bad that printed money literally have no purchasing power and some of them are weaved into handbags or rags.

So it’s not really the quantity we are looking for but rather the value instead.

[Y3shot]

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

Raising the minimum wage of workers is not a solution to inflation if nothing is done about inflation.  If the government raise the payment of workers and nothing is done about inflation,  marketers will take it as an advantage to increase of products in the market. It is better to make everything as possible to reduce the level of inflation because when workers minimum wage increases because of inflation it will only benefit only people that are salary earners and those that depend on the little business it will really affect them which they may not even be capable to continue with their  business.

Inflation is a critical problem in a country,  and if their is nothing to be done about it will so much affect the economy that the government won't be able to pay the allowance of workers.

[milewilda]

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

Raising the minimum wage of workers is not a solution to inflation if nothing is done about inflation.  If the government raise the payment of workers and nothing is done about inflation,  marketers will take it as an advantage to increase of products in the market. It is better to make everything as possible to reduce the level of inflation because when workers minimum wage increases because of inflation it will only benefit only people that are salary earners and those that depend on the little business it will really affect them which they may not even be capable to continue with their  business.

Inflation is a critical problem in a country,  and if their is nothing to be done about it will so much affect the economy that the government won't be able to pay the allowance of workers.

But having that raise would really be something that will really be a notable action if it would really be done by the government on which having that increase is something that somewhat could be able to fight off that inflation or something that would really be that beneficial for most people who are really that getting their monthly salary. Yes, we are living in a world on which economic problems such as this where these kind of raise would really be a saving grace for them but of course its not something that government could really be always something to do on which there would really be those conditions that raise up on their wages is something that could be that easily happen and thats why on the time that inflation is really that creeping out then majority of these workers or wage earners would really be having that overdropped kind of living on the time that their salary isnt already enough for them to spend on. This is a solid condition that describes in our country today that all commodities and primary need prices do keeps on increasing but not the salary that we do able to earn on which this is something that results into disaster.

[Fortify]

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Raising the minimum wage can help to tame inflation but it cannot be used alone and unless many more measures are used at the same time it is likely to have the effect of making it worse. The biggest thing that is likely to get inflation under control is raising the central bank interest rate, as this forces borrowers to rein in their spending and rewards savers in an economy. This stops the cycle of cheap credit which can fuel big bubbles over time and sends it into reverse. However economies can also be effected by outside influence that they have less control over - like wars started by other countries (Russia for example) or even things like a worldwide pandemic which can screw up supply chains which take years to straighten out again.

[Moreno233]

an increase in the minimum wage for workers will actually not solve or reduce the level of the inflation problem. In fact, people's purchasing power will become weaker and the purchasing power of money will become less, thus the economy will weaken even if the minimum wage is increased to increase people's purchasing power but it will be difficult to recover. return.

You are actually right as your response is like hitting the nail by the head. Whenever there is inflation, workers usually demand increase in minimum wage as if that will solve the problem. What this do in reality is that it makes the economic woes the new normal. By this I mean, the increase in price will become accepted and the increased pay will not be able to compensate for it as price will continue to increase across board living the unemployed and under employed to bear the brunt. The only known solution to inflation is fixing the economy and eliminating the imbalance that lead to it, every other action taken apart from this will just be temporarily cautionary.

[passwordnow]

If you're the type of guy that's stagnant and relies solely your living to your salary, it does help. But for how long with that increase you'll have to wait again until you get another one? The inflation isn't going to stop anytime soon and before it's like every year we get to see inflation rate increases but this time is crazier, we get to see reports of it monthly and they're increasing like 1% monthly.
That's actually a lot if it's going to be merged and added for the entire year so, with your possible 5%-10% of increase as that depends on the capacity of the company and the inflation goes up depending as well on your economy's performance but let's make it into the crazy situation before but now becomes a norm like a 12% inflation rate where we get that from 1% monthly increase.
It's enough? to say, yes but it's not going to be enough for the upcoming years to come as your salary increase above minimum will be lesser in terms of your purchase power with the goods that are also increasing. Plus all of the expenses, rent/mortgage or any obligation that you're paying monthly. Many of those are going to be expensive as well as there's a domino effect that we get to see when inflation rate increases. Coming from oil, commodities, food, etc. Everything now becomes so expensive that even the food prices will also affect the other things that we consume and use.

[avp2306]

an increase in the minimum wage for workers will actually not solve or reduce the level of the inflation problem. In fact, people's purchasing power will become weaker and the purchasing power of money will become less, thus the economy will weaken even if the minimum wage is increased to increase people's purchasing power but it will be difficult to recover. return.

You are actually right as your response is like hitting the nail by the head. Whenever there is inflation, workers usually demand increase in minimum wage as if that will solve the problem. What this do in reality is that it makes the economic woes the new normal. By this I mean, the increase in price will become accepted and the increased pay will not be able to compensate for it as price will continue to increase across board living the unemployed and under employed to bear the brunt. The only known solution to inflation is fixing the economy and eliminating the imbalance that lead to it, every other action taken apart from this will just be temporarily cautionary.

What might also happened in that case is the company will force to layoff their workers to compensate those request. That's why people should not be so aggressive for getting their demands since there are companies that can't able to give an immediate raise especially if they are surviving in harsh economic state on their country.

That's why people nowadays should find alternative solution on their droughts and create some opportunities on their free time since there are lot of things that they can do especially that everything is digitalized and they can work or either sell some products online to get an extra funds for them to sustain their daily needs or get some extra funds for emergency purposes.

[slapper]

Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

Raising the minimum wage of workers is not a solution to inflation if nothing is done about inflation.  If the government raise the payment of workers and nothing is done about inflation,  marketers will take it as an advantage to increase of products in the market. It is better to make everything as possible to reduce the level of inflation because when workers minimum wage increases because of inflation it will only benefit only people that are salary earners and those that depend on the little business it will really affect them which they may not even be capable to continue with their  business.

Inflation is a critical problem in a country,  and if their is nothing to be done about it will so much affect the economy that the government won't be able to pay the allowance of workers.

But having that raise would really be something that will really be a notable action if it would really be done by the government on which having that increase is something that somewhat could be able to fight off that inflation or something that would really be that beneficial for most people who are really that getting their monthly salary. Yes, we are living in a world on which economic problems such as this where these kind of raise would really be a saving grace for them but of course its not something that government could really be always something to do on which there would really be those conditions that raise up on their wages is something that could be that easily happen and thats why on the time that inflation is really that creeping out then majority of these workers or wage earners would really be having that overdropped kind of living on the time that their salary isnt already enough for them to spend on. This is a solid condition that describes in our country today that all commodities and primary need prices do keeps on increasing but not the salary that we do able to earn on which this is something that results into disaster.

Talking about greater pay to tackle inflation misses the point. A superficial repair. No doubt, any stimulus helps struggling people right now. But long-term? Not enough. Think deeper: the government demands higher wages. But that cost is passed on. Companies boost prices to survive. Inflation is complex and ever-changing. The paycheck grows, yet what you buy stays the same or worse

This wage-inflation back-and-forth? That spiral is fragile. Businesses can only charge so much before customers leave. Employees may only expect so much before firms lay off. The system breaks down, not just numbers. Not blaming anyone. A holistic view is needed. We must first discuss why prices keep growing and salaries aren't keeping up, then find solutions to make the economy work for everyone

[bakasabo]

Raising the minimum wage can help to tame inflation but it cannot be used alone and unless many more measures are used at the same time it is likely to have the effect of making it worse.

I have already posted here - raise of minimum wage wont do anything, as employer will have to pay a higher social tax. Each worker will become more expensive for the company. It isnt necessary to be a genius to figure out that those extra expenses will be added to product and service price. Which is - inflation again. That is as if people would fight fire by burning everything around. Increase of minimum wage is no better than printing new money. It is called "we have a problem, but let others solve it".

[TEBTC]

Increasing minimum wage as it regards to inflation is good but should be taken only as a palliative measure to cushion the effects of inflation but the real thing to do should be looking at economic stabilization such as strengthening of your currency against the dollar and encouraging local production of goods and services in doing so foreign import rate will reduce and it will have it impact on the overall economic growth and stability