Quote:
Originally Posted by a_Username
There is a correlation between minimum wage and inflation. Businesses that are effected by this type of regulation has to increase the amount of money their good is sold for in order to overcome the added expense of minimum wages. When the prices of goods are rising, so does the cost of living.
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But what causes people to need a higher minimum wage? Claiming it causes inflation seems backwards to me. Things become more expensive, so people need to be paid more in order to meet their needs. Sure, after that it becomes somewhat cyclical, for the reasons you said. But the first link in the chain isn't increased wages for the people at the bottom.