> Raising the minimum wage would simply make 2.6% of the working population better off at the expense of their employers.
But never the less those 2.6% percent will be directly responsible for the inflation since they barely get by now and if you increase their wages the prices will adjust accordingly so that they barely get by in the future. Also it has been shown that if you increase minimum wage all wages across the board will increase, even the highest ones.
> Central bank monetary policy causes the money supply to increase, creating inflation.
There is no evidence for that. The money supply has been expanded vastly in the last years but still there was almost no inflation. Why? because all the money arrived in the financial market where it "inflated" the value of financial products causing one bubble after the other.
There is a very easy way to make absolutely sure that the money arrives in the real economy (which will be the driver of "investment-worthy" projects in the future): raise wages.
But never the less those 2.6% percent will be directly responsible for the inflation since they barely get by now and if you increase their wages the prices will adjust accordingly so that they barely get by in the future. Also it has been shown that if you increase minimum wage all wages across the board will increase, even the highest ones.
> Central bank monetary policy causes the money supply to increase, creating inflation.
There is no evidence for that. The money supply has been expanded vastly in the last years but still there was almost no inflation. Why? because all the money arrived in the financial market where it "inflated" the value of financial products causing one bubble after the other.
There is a very easy way to make absolutely sure that the money arrives in the real economy (which will be the driver of "investment-worthy" projects in the future): raise wages.