@coachdrewglobal Minimum wage just creates more incentive to replace humans with automation, or cut jobs. The only thing that can cause raise in price of goods is rise in the demand or drop in the supply. If you care about wages, you should fight for increase in competitiveness, ease of creating businesses, so there are more businesses, and companies need to bid higher for the labor.
@dpc you are applying neoliberal economic theory directly to the real world. I fundamentally disagree with your theory. Thats OK.
@dpc also, this really isnt about jobs being cit and automation. Its about theory that increased wages will leave the working poor with too much money to spend/too much purchasing power, leading to inflation, leading to higher interest rates, meaning higher cost of borrowing. In other words, they tell me that our economy depends on a large group of people staying poor.
@coachdrewglobal I have never heard of such theory, and I agree: it seems like complete rubbish .
@dpc if you read between the lines, that is the dominant theory behind our current economy. We are taught that making things easier for “business” (owners of capital) is the best way to make things better for humans (labor). I agree that its rubbish, but some of your reply to my original toot seemed to embrace this theory.
@dpc when they say “the economy is overheating” they mean unemployment is too low, poor people have to much money to buy things, which causes inflation.
@coachdrewglobal Well. Companies need people to buy stuff to make profit, and thus pay their shareholders. So it's all complicated. The whole system is completely rotten, but complex and opaque, so most easy answers are wrong. :)
It could be true because it cuts into profits, but the NY Times had an interest piece too about another possible reason.