Inflation Is The Kryptonite That Will End Our Decades-Long Monetary Policy Ponzi Scheme

QTR Fringe Finance ^ | 1-26-2022

[Toddsterpatriot]

All the anti minimum wage stance does is turn off about 100,000,000 working class voters.

Less than 2% of workers are at or below minimum wage. Why would that issue turn off 100 million voters?

[central_va]

Dude, people that work for a living all get paid by the hour, especially blue collar workers. They see the bottom of the wage scale as a horror show. If the minimum wage goes up it pushes up all boats. Some people actually work for a living, this may come as shock to many GOPers...

Wages are so depressed by the "magic" of gloBULLism that they could double and still be behind.

[Toddsterpatriot]

Dude, if your wages are significantly impacted by the bottom 1.5% percent of workers, you've got issues. If you think those issues will turn off 100 million voters, one of your issues is math.

Thanks for the graph from EPI. Wasn't there one from the CPUSA you could use?

https://www.heritage.org/jobs-and-labor/report/workers-compensation-growing-along-productivity

The explanation behind the charts is at the link.

The main takeaway....

"A major reason why some studies show a gap between pay and productivity is that they compare different groups of employees and ignore a portion of employees’ compensation. These studies measure the productivity of all employees as well as the self-employed. However, they only consider the compensation of some employees: private-sector “production and non-supervisory employees” covered by the Bureau of Labor Statistics (BLS) payroll survey.[17]"

"Measuring compensation inflation with the PCE increases average compensation growth from 47 percent to 62 percent. Much of the apparent divergence between compensation and productivity thus does not exist in any meaningful sense in the real world. It is a statistical artifact created by measuring inflation differently for productivity than for compensation"

[absalom01]

“Much of the apparent divergence between compensation and productivity...”

Could the majority of any actual divergence between compensation and productivity be laid at the feet of our open borders, and 20 MM plus illegal, low-wage easily exploited workers?

[Toddsterpatriot]

Yeah, millions of low skill illegals sure don’t help our minimum-low wage workers.

[Pelham]

“LOL. Raising the minimum wage has nothing to do with inflation”

Sure, because arbitrarily increasing the cost of an hour of work isn’t an increase in costs and can’t possibly erode the value of savings. I learned that from the Red Queen’s seminar in Wonderland.

[central_va]

There is no correlation between raising the minimum wage and inflation.

Look at this mess. There is no correlation between inflation and the minimum wage. None what so ever.

[Pelham]

Why you choose a chart that isn’t based on a minimum wage study is a mystery known only to you.

An NBER working paper that does examine the correlation of minimum wage and inflation is found here:

http://tankona.free.fr/nber25761.pdf

The chart on page 58 is specifically “Minimum Wage Changes and Inflation”. There is a time lag response and inflation is greater for industries employing larger numbers of hourly workers.

They will pass on their added costs to consumers if they can, and a mandated wage hike is an added cost. Whether that’s desirably public policy is a different matter.