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

[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.

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[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.