Quote:
Originally Posted by a_Username
That is not what I'm saying. If you take away what causes the prices to go up, then your question needs not to be answered. What is the cause of this inflation? Again, there are numerous reasons to why and minimum wage laws are one of them.
The concept of minimum wage is flawed. Your economic textbooks even tell you this, but what is more ironic is that the laws actually hurt the poorest and least productive peoples in the workforce.
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The cause of inflation is deficit spending and printing/creation of money out of thin air by central banks. Inflation by definition is an increase in the money supply. The value of money operates on the same supply and demand principle as the value of anything else. If the supply of money increases faster than the total available quantity of goods and services it is being used to purchase, its value goes down and prices increase.
Rising prices are not inflation, they are merely a symptom of inflation. The "cost" (i.e. value) of goods and services isn't going up, the value of the currency being traded for them is simply going down.