Response to US $15 min wage small business & inflation concerns
We should be tying the min wage to inflation. But generally we're due for an increase, since at the fed level haven't done that in a while. At 7.25 the min wage was way behind inflation. Also, it's just better economics when people have more spending power. Other countries have economists in charge of this, instead of politicians. Tying to inflation might also constitute more than $15 as well.
You can also tie it to the small business size, and roll it in over time. “If you can’t pay a living wage, you shouldn’t be in business.” You could also get small business aid, but if you can’t make it work and pay people, while surviving yourself then doesn’t sound a competitive model. Also the spending power, and in turn profits, helps from increased wages.
Prediction is 1.4 million less jobs on the market, 4 million lifted out of poverty. ($15 min wage policy) It’s not perfect or black & white but a net benefit - that is if the way it works doesn’t tie to minor inflation.
We don’t have this min wage policy, because it failed to pass. However, the current economic consensus is that recently inflation has been rising due to sector-specific supply chain bottlenecks, covid related, semiconductors, oil, building materials etc. In general, because of reopening the economy, meaning it’s not ready. The fed is able to buffer this by increasing lending rates or tightening monetary policy.
Companies in a traditional capitalist model will most of the time not distribute their profits voluntarily via wage increases. This is why the min wage has existed,(in many places, increasing periodically) and makes sure this mechanism happens.
I used to be into ending the fed idea tbh, my issue with them now is that they give money to corporations at cheap rates(even 0% interest to wall street banks) but to taxpayers, predatory rates. It favors large corporations over the working class + small business currently, but could be remodeled to do the opposite. https://rooseveltinstitute.