Is increase in minimum wage a good method to fight 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.