As the inflation, deflation, disinflation debate rages, with Fed rate cuts in the balance, let’s discuss some of the forces in play. 
The above image is from a Tweet that inspired this post.
Leo Terrell comments ‘McFlation’: $7 Egg McMuffin At McDonald’s Sparks Uproar
Where Workers will Get a Raise on January 1
Minimum Wage hikes will take effect in 2024 for 25 U.S. states. Here’s who is getting a Minimum Wage Increase.
The increases will boost the baseline pay to at least $16 an hour in three states: California, New York and Washington. In 22 states, the new minimum wages will take effect on January 1. However, Nevada and Oregon’s new rates will go into effect on July 1, while Florida’s will increase on September 30.
About 1 in 4 U.S. workers earned less than $15 an hour in 2021, according to the Center for American Progress, a liberal think tank. Workers in six states — California, Connecticut, Maryland, New Jersey, New York and Washington — will be guaranteed baseline pay that’s more than twice that of the federal minimum wage.
Some cities next year will also boost their minimum wage above the statewide level. Denver, for instance, will increase the city’s minimum wage to $18.29 an hour on January 1, topping Colorado’s rate of $14.42 an hour.
San Diego Community College District Ups minimum wage to $30.58, Nearly double California’s
How widespread are actions like this: San Diego Community College District Ups minimum wage to $30.58, Nearly double California’s
The SDCCD serves a large portion of San Diego County’s higher-eduction pie: Nearly 80,000 students attend its four campuses at San Diego City College, San Diego Mesa College, San Diego Miramar College and the San Diego College of Continuing Education.
Maintenance worker Edith Rangel, who is married and is raising a 5-year-old and a 9-year-old, is one of 250 workers whose income was boosted. Her raise bumps her pay from $22.13 an hour to $30.58, an increase of $338 per week, or nearly $18,000 a year. In aggregate, the school will now be on the hook for nearly $16 million paying just that group of employees.
How did the district arrive at the $30.58 figure? It wasn’t by accident — in fact, it was based on the Massachusetts Institute of Technology’s Living Wage Calculator, which has found that “two working adults raising two children in the San Diego metropolitan area need to make $30.58 per hour to support themselves and their family. A single adult with no children must earn $22.31 to support themselves,” according to the SDCCD.
Illinois Employers Will Pay the Highest Minimum Wage in the Midwest in 2024
The Illinois Policy Institute reports Illinois Employers Will Pay the Highest Minimum Wage in the Midwest in 2024
A 2018 University of Wisconsin, Madison study looked at the effects of Minnesota’s 2014 progressive minimum wage hike. The study found that youth employment dropped by 9% and restaurant industry employment overall fell 4% in the years immediately following minimum wage increases.
Moreover, empirical evidence suggests minimum wages do not elevate low-income families, nor reduce most forms of public assistance, but rather benefit individuals who are already employed.
The Land of Lincoln has increasingly struggled to attract employers due to the state’s high labor costs, nation-leading tax burden and large number of regulations on businesses.
A new report from the Tax Foundation ranked Illinois’ business climate as the 37th worst in the nation. Neighboring states ranked much higher in the 2024 report: Indiana ranked 10th, Michigan 11th and Missouri 12th.
Many will counter that few people make the minimum wage. That is undoubtedly true. However, increases in minimum wages place upward pressure on wages across the board.
What About Productivity?
Wage hikes are not highly inflationary if productivity goes up. Lately, productivity is on the rise.
The BLS notes Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all workers, including employees, proprietors, and unpaid family workers. During the current business cycle, starting in the fourth quarter of 2019, labor productivity has grown at an annual rate of 1.6 percent, as output grew at a 2.2-percent per year rate, outpacing hours worked, which grew at a 0.7-percent annual rate.
The recent jump in productivity is largely due to fewer hours being worked. But is productivity on the rise at McDonalds, fast food places, restaurants in general, or by government employees?
Industrial Production Up Slightly, Mostly on a Huge Auto Surge as UAW Strike Ends
On December 15, I noted Industrial Production Up Slightly, Mostly on a Huge Auto Surge as UAW Strike Ends
The Fed reports industrial production rose 0.2 percent in November, led by a 7.1 percent jump in motor vehicles and parts.
That accounts for some of the productivity gains in the fourth quarter.
Largest Healthcare Strike in History Underway
On October 4, I noted Largest Healthcare Strike in History Underway, Hello Biden, You Picketing This Too?
More than 75,000 nurses, pharmacists and other employees of the Kaiser Permanente health system walked off the job Wednesday in the largest U.S. healthcare strike in recent history.
In the contract talks, Kaiser said, it has proposed wage increases of 12.5% to 16% in total over four years, depending on the location.
Unions said the employer’s offer doesn’t go far enough to offset inflation. They are seeking a total wage increase of 24.5%.
The union ratified a new contract on November 9. Reuters reported “The new contract includes across-the-board wage increases totaling 21% over four years, an increased payout for employees under a performance-sharing plan and commitments to address a staffing crisis, including increased training, education and mass hiring events.”
Does anyone think productivity will rise?
Minimum Wages Hikes at California Fast Food Restaurants
On September 28, I noted Minimum Wage for Fast Food Workers Jumps 30% to $20 Per Hour in California
More inflation is coming your way. California again leads the way.The bill will force many small restaurants out of business or they will pony up too. If McDonalds pays $20, why take $15.50 elsewhere? The $4.50 hike from $15.50 to $20 is a massive 30 percent jump.More inflation is coming your way. California again leads the way.
Massive UAW and UPS Wage Hikes
GM, Ford, and UPS workers all received record contract increases in the fourth quarter.
UPS responded by cutting 12,000 back end jobs. These jobs probably were unneeded in the first place.
I commented on that result on January 30, 2024 in Companies Turn to AI Because Real Intelligence is Hard to Find
Since those were back office workers, productivity is sure to go up. But what will UPS do for an encore?
Across the board, I see huge inflationary pressure from wages. EV batteries are also a huge concern.
Critical Materials Risk Assessment by the US Department of Energy
Please consider Critical Materials Risk Assessment by the US Department of Energy
Rare earth elements go into weapons guidance systems, batteries, wind turbines, cell phones, flat-screen TVs, magnets, mercury-vapor lights, and camera lenses.
The US is heavily dependent on China for nearly everything in that red critical square. I list the percentages by element.
Trump Calls for Eye-to-Eye Tariffs
On December 26, I noted Trump Calls for Eye-to-Eye Tariffs, Huge Trade War No Matter Who Wins
Trump and Biden are in ever-escalating tariffs proposals.
So, how might China retaliate?
Ford Cuts Production of Electric Trucks
On January 20, I noted Ford Loses $36,000 on Each EV, Cuts Production of Electric Trucks
Q: What did Ford do as EV losses mounted?
A: It increased production of Trucks that people actually want.
Hello, that’s another boost in productivity.
Productivity Boost Looking Ahead
Much of the boost in productivity won’t be duplicated. And in most cases, there were huge wage increases with no increase in productivity.
But the wage hikes are real and lasting.
Is Inflation Down? That’s What President Biden Says
Let’s tune into a White House Statement on inflation to discuss what’s real and what is imaginary.
For discussion, please see Is Inflation Down? That’s What President Biden Says
Transitory Inflation?
Economists now widely believe in the softest of soft landings.
But here’s the key question: Is inflation transitory or is the recent decline of inflation transitory?
I suggest it’s the decline in inflation that is transitory until the Fed delivers a recession.
Financial asset price inflation depends on easy money (low rate, buybacks, etc) whereas food price inflation depends on price gouging resulting from agobusiness concerted decision (that doesnt involve farmers)
Powell needs to continue with QT. The FED needs to find Lowest Comfortable Level of Reserves (“LCLoR”). And that will be tricky with the mal-distribution of interbank demand deposits.
The FED should adopt the 1966 Interest Rate Adjustment Act, which drove the banks out of the savings business (which doesn’t reduce the size of the payments’ system).
That increases the supply of loan funds, but not the supply of money. Lending by the banks is inflationary, whereas lending by the nonbanks is noninflationary, other things equal.
And that will increase the real rate of interest for saver-holders.
The seasonal increase in money flows has now been reversed / washed out.. If the current trajectory remains intact then we could have deflation in the last half of 2024.
The deficits must be cut. We can’t afford to be the world’s policeman.
Powell’s a Keynesian economist. He thinks banks lend money. But the money supply always increases every time the banks lend/invest.
The Ph.Ds.at the FED think there’s no difference between money and liquid assets, hence they include retail money market funds in the money stock.
N-gDp has been a stark outlier, too high for too long. Yet the FED still manages the economy through interest rate manipulation and not legal reserves.
Lorie Logan gives a prime example of this delusion: “But in an efficient system, the costs of liquidity should be similar for banks and non-banks.”
Never are the banks intermediaries between savers and borrowers. The NBFIs are the DFI’s customers.
Usa cant afford to make war for Uk (irak, afganistan,ukraine, etc..) but letting china/uk accaparate all resource in africa/middle east is also not great.
I can’t imagine how or where productivity is increasing so I’m in the inflation camp.
We are going deeper into an unsustainable subsidy system. Housing and income subsidies are surely a form of corporate welfare – many goods are sold below their true, societal cost of production. The low wages which support the low price work only because of these external supports. Without the supports, the price would have to represent the true cost of labor or no one could afford to do the work. You get more of what you subsidize.
Then I’m seeing a widespread reduction in the attitude to work by younger members of the workforce. The idea of showing up on time and doing what you’re being paid to do seems so passe.
On top of that, we are increasing regulatory oversight from old and new directions, none of which improve productivity – labor, safety, environmental, and all the “woke” angles.
Maybe AI can put an end to much of this but, be careful what you wish for.
What you are seeing in the attitude to work by younger members of the workforce, are due to the Government and Parents subsidizing this behavior.
Once the Government, stops taking the working class taxpayers dollars, and shoveling them into the pockets of the undeserving then this will change.
This list is very long I might add. You have illegals, NGO’s, unions, government contractors, government agencies, government aligned organizations, government in general, BLM, transgenders, abcdef crowd, post office, IRS, public schools, public transportation, sanctuary cities, cities broke in general, college loans, restitution payments, Ukraine, etc.
You are correct. US Productivity has been declining for the last 5 years after increasing for the prior 50 years.
Many reasons for the recent decline. The biggest being the pandemic. But also demographics (mass retirements of highly skilled workers, without enough younger workers to replace them), and a disruption in globalization and free trade due to international tensions and tariffs.
I expect productivity to rise going forward as pandemic effects dissipate, demographics improve, and technology (particularly AI) begins to make a big difference. The remaining negative is deglobalization.
Before the pandemic, King Soopers sold small store brand cakes for $5. The pastry is now $8, a 60 percent inflation jump. Doughnuts that were 50 cents are now 80 cents, also up 60 percent. Inflation has moved into the phase were rising labor costs contribute to the spiral. Inflationary periods in the late 60s and early 70s mandated the government to freeze wages, to halt escalation. A political accord to abstain from raising salaries would spell disaster for the incumbent party.
Wow. You can still get doughnuts for under a buck!
My first post wasn’t accepted. I will try again
What is the future of inflation?
Based on which definition of inflation?
First: I assume we are talking about inflation as it relates to increasing prices and wages (as Mish used in his post) as opposed to the amount of money vs production.
Second: To all those who complain about how inflation is measured, I suggest you find a better measuring system because I certainly can’t be bothered to. I don’t think the government inflation statistics are very accurate, but I doubt if there are any other stats that are any better. And it just isn’t worth arguing about.
Third: I will take a stab at where wage and price inflation is going over the next decade or two, knowing full well that I will likely be completely wrong.
Fourth: There are so many wages and prices moving in different directions, that at best I can only cover a few of them.
Here are some of the major factors that I believe will influence inflation.
Energy: Our economy, our standard of living and our very lives are dependent on energy. The lower the price of energy, the lower the inflation rate will be. Every good we produce requires energy. Every good that we transport requires energy. The food we eat, the homes we heat and cool, the electricity we use; all require more energy. As the world population grows, and as economies grow, we will use MORE energy every year. So the cost of energy is a big part of what the inflation rate will be.
Fossil fuels still supply over 80% of our energy. For the last decade we have reduced our capex on fossil fuels, which will limit future supply. Limiting supply in the face of ever increasing demand means that there will be upward pressure on energy prices, unless we can meet our increasing energy needs with more nuclear and renewable energy. Which we are still not able to do. As a result, I expect that energy prices will contribute to a higher inflation rate.
Globalization: For the last three decades we have had a very low rate of inflation. One reason for this was globalization. A more open, competitive and free market global economy have reduced inflation significantly. That era of globalization is now disrupted and is likely to be further disrupted going forward. This will also lead to more inflation.
Technology: Technology is the second big reason that inflation has been low for the last three decades. Automation, computers, the internet, etc have dramatically reduced costs and improved productivity. Next up is AI. Which is predicted to continue the trend of lowering prices. As a side note, this will require even more energy use. But overall, Tech will continue to contribute to lower inflation. And AI might be a very big contributor.
Unions: In the past, when unions were more powerful and numerous, they helped unionized workers to keep up with inflation. Which in itself, helped fuel more inflation. Very few unions exist in today’s world. Their influence has waned. This will make it more difficult for wages to keep up with inflation. Which will help reduce inflation by making it very difficult for the majority of workers to maintain their standard of living. Unless they have the skills and talent to command higher wages on their own.
Government Spending and Debt Levels: Both have been increasing faster than the inflation rate for the last 30 years, with no apparent influence on the inflation rate. Globalization, Technology, Productivity and waning Union influence have been able to keep a lid on inflation.
Conclusion: For 2024 I expect inflation as measured by govt in the 2-4% range. Going forward, I expect the same for the rest of this decade. Upward pressure from energy and materials prices, and less globalization, somewhat offset by less pressure due to technology and fading union influence.
Second: To all those who complain about how inflation is measured, I suggest you find a better measuring system because I certainly can’t be bothered to. I don’t think the government inflation statistics are very accurate, but I doubt if there are any other stats that are any better. And it just isn’t worth arguing about.
Exactly what our dear benevolent leaders want to hear. They love sheep like you. I hope you don’t vote either it just doesn’t matter right? A placid flock of sheep is what they want and you fit the bill exactly.
Lol!
Let me know when you come up with a better measure of inflation.
Correct. I don’t vote. It’s a waste of my time.
I leave it for the sheep who think that their vote for party A or B will somehow improve their personal life. As if government is somehow going to solve their personal shortcomings and problems. Talk about stupidity.
I focus my attention on things I can actually impact. Like my personal health, wealth, family and friends.
What do you like to focus your attention on?
Again exactly what your dear leaders want a complicit complacent and ignorant populace that will let them do whatever those malevolent bastards want. Your statement about someone coming up with a better cpi is like telling someone that compains about their cars to go build one themselves. I am sure our forefathers had the same attitude as yours. What a condescending arrorogant poster you are.
Oh. Boo hoo hoo. Yep. I am condescending to several of the morons here. Though honestly, I simply ignore the majority of them. Since there is no IGNORE button I make it a point to never read what they post, even if it’s in response to me. Why should I waste my valuable time on morons?
I will have to add you to that group. But before I do:
You didn’t answer my question.
What do you like to focus your attention on? Other than whining and complaining like a petulant child.
Good summary! I’ll add a few factors mostly re-inforcing your de-globalization argument. The U.S. continues to broaden military-economic conflicts and extend sanctions on other countries, e.g. China, raising commodity prices (LNG, oil, food products, electronics); plus, conflict will increase bottlenecks on critical sea lanes and other costs. Trade wars will mean higher tariffs and (probably?) a deteriorating dollar, increasing the costs of imported goods. More military spending at home means diverting resources to more guns, less butter, suppressing supply (and increasing prices) of the latter. Droughts, declining water tables, and higher fossil fuel prices impact costs of agricultural inputs, reducing yields and increasing food prices. Etc. Etc.
All good points.
Regarding shipping. The Panama canal is operating below capacity due to a drought. Perhaps some recent rain there will help.
The Suez canal and Red Sea shipping route are operating below capacity due to Houthi attacks.
These problems add 2-4 weeks to shipping times. This increases shipping costs by quite a bit and interrupts economic production all over the world.
If inflation stays between 2-4% then it seems the Fed rate will stay close to where it is now since their goal is 2%. How do you see that impacting the stock market over the rest of the decade?
From 1973-1981 The inflation rate was higher every year, but arguably one, than it is today (what they say). So why again is the idea of rates shooting up into double digits, so unfathomable?
Things are far worse in this country, financially speaking. We owe more, spend more, make less and talk more, so no surprises right?
When you take into account, the dire shape of much of our Country’s infrastructure, and just the cost to become stable again, could be overwhelming. We need massive cuts everywhere and in everything unfortunately…
Inflation was not measured the same way in the 1970s as today. The relative importance of goods vs. services was also different. So the historical inflation rate numbers are not directly comparable, just the trends.
What is the future of inflation?
Based on which definition of inflation?
First: I assume we are talking about inflation as it relates to increasing prices and wages (as Mish used in his post) as opposed to the amount of money vs production.
Second: To all those who complain about how inflation is measured, I suggest you find a better measuring system because I certainly can’t be bothered to. I don’t think the government inflation statistics are very accurate, but I doubt if there are any other stats that are any better. And it just isn’t worth arguing about.
Third: I will take a stab at where wage and price inflation is going over the next decade or two, knowing full well that I will likely be completely wrong.
Fourth: There are so many wages and prices moving in different directions, that at best I can only cover a few of them.
Here are some of the major factors that I believe will influence inflation.
Energy: Our economy, our standard of living and our very lives are dependent on energy. The lower the price of energy, the lower the inflation rate will be. Every good we produce requires energy. Every good that we transport requires energy. The food we eat, the homes we heat and cool, the electricity we use; all require more energy. As the world population grows, and as economies grow, we will use MORE energy every year. So the cost of energy is a big part of what the inflation rate will be.
Fossil fuels still supply over 80% of our energy. For the last decade we have reduced our capex on fossil fuels, which will limit future supply. Limiting supply in the face of ever increasing demand means that there will be upward pressure on energy prices, unless we can meet our increasing energy needs with more nuclear and renewable energy. Which we are still not able to do. As a result, I expect that energy prices will contribute to a higher inflation rate.
Globalization: For the last three decades we have had a very low rate of inflation. One reason for this was globalization. A more open, competitive and free market global economy have reduced inflation significantly. That era of globalization is now disrupted and is likely to be further disrupted going forward. This will also lead to more inflation.
Technology: Technology is the second big reason that inflation has been low for the last three decades. Automation, computers, the internet, etc have dramatically reduced costs and improved productivity. Next up is AI. Which is predicted to continue the trend of lowering prices. As a side note, this will require even more energy use. But overall, Tech will continue to contribute to lower inflation. And AI might be a very big contributor.
Unions: In the past, when unions were more powerful and numerous, they helped unionized workers to keep up with inflation. Which in itself, helped fuel more inflation. Very few unions exist in today’s world. Their influence has waned. This will make it more difficult for wages to keep up with inflation. Which will help reduce inflation by making it very difficult for the majority of workers to maintain their standard of living. Unless they have the skills and talent to command higher wages on their own.
Government Spending and Debt Levels: Both have been increasing faster than the inflation rate for the last 30 years, with no apparent influence on the inflation rate.
Globalization, Technology, Productivity and waning Union influence have been able to keep a lid on inflation.
Conclusion: For 2024 I expect inflation as measured by govt in the 2-4% range. Going forward, I expect the same for the rest of this decade. Upward pressure from energy and materials prices, and less globalization, somewhat offset by less pressure due to technology and fading union influence.
“Many will counter that few people make the minimum wage. That is undoubtedly true. However, increases in minimum wages place upward pressure on wages across the board.”
That prevents equity, equal incomes.
I noticed the lowest average price of this year’s Superbowl ticket is around 9k almost double last year’s price. You can obtain a premium seat for around 36k if you’re the woke pretentious type. Besides the game you’ll be provided with the Black National Anthem courtesy of the NFL’s DEI police.
Uncle Joe attacked the Hooties again, tonight.
COLA is down. Transfer payment deflated. 20 million illegal immigrants compete with
min wages. Turnover of MickeyD store’s mgr is high. Dr Robert Lustig : feed your gut with fiber. Eat real food. Stay away from junk, processed food to keep the mafioso away, who will charge thousands of dollars, for every $10/$20 u spent in MCD, treating
the symptoms.
UNCLE FING JOE IS DESTROYING
THE US OF A
It’s the ladies (Karens in particular) who voted for Joe because virtue signaling and “feels rather than reals”.
For 1 year, between Oct 2021 and Oct 2022, US1Y climbed from zero to 4.7%. Since
then the 1Y osc in a trading range. In Oct 2022 SPX bottomed. In Jan 2024 SPX
reached a new all time high. All rates – 2Y, 5Y, 10Y, 20Y and the 30Y – osc in a trading range, for over a year, under Fed rates, for the first time in history. What should the Fed do if traders lift SPX to 5.5K/6K.
So, as usual nobody can spot the pea in this shell game. When WM and other offenders pay their “Associates” a non working wage the Taxpayers have to subsidize this. The real problem is that Corporate & Executive remuneration has gone insane!
Btw, the minimum wage in the late ‘50’s was the equivalent of about 25-27 bucks an hour inflation adjusted.
The Illegal Invasion is also not helping matters for the Native Population with regard to unskilled wages being stuck below subsistence levels for 40 yrs.
This is what happens when your country descends into Fascism- not National Socialism, but good old fashion Fascimo.
Those public/private partnerships, like Big Pharma and the public health agencies. Throw in some NGO’s just for fun.
YOU READY FOR THIS
CHRISTMAS I WANT DOWN TO VISIT MY DAUGHTER IN CT
WENT TO MCDOO
GOT A SAUSAGE EGG HASH BROWN AND COFFEE IT COST ME $ 14.25 US MONEY
THE SAME THING UP HERE IN CANADA
WHERE I LIVE IN IS MONEY COST ME $ 5.85
ON US MONEY
BOY YOU GUYS ARE GETTING
THE OLE UNCLE JOE FUCKING
Insightful commentary from the everyday MAGAT.
truflation.com has year over year inflation at 1.35% as of Feb 3, 2024; the caveat is their index is more volatile than the CPI so it is opposite of something that the fed would use.
The BLS has been showing deflation the last few months so their annual figures will soon be in the 1% range. I got downvoted for saying this a few weeks ago. The BLS figures are completely detached from reality but the BLS creates reality because their official figures determine things like social security COLAs, tax thresholds, etc.
Correct there is a transient decrease in the rate of inflation but the trajectory in up. Deficit spending, onshoring, wage inflation, tariffs, war and supply disruptions, will put upward pressure on pricing. The purchasing power lost to this bout of inflation will never be resorted,our savings are worth less now. Trump and Biden are economic moronic illiterates, yes tariffs are counterproductive and inflationary. As long as it appeases their voters by making them think its helping them those traitors will do anything. I don’t think a recession will help. All these cost pressures are not affected by a recession, we will get stagflation. THe trillion dollar question is what will the fed do if they can’t control inflation and need to raise rates. Our national debt interest payments will go into a death spiral.
The national debt interest payments are already in a death spiral. Two years ago the Feds were paying $200 billion annually, today they are paying almost $800 billion and you can go to nationaldebtclock.org to watch that number as it rises ……..
Taxes will have to go up.
Folks who cannot spread peanut butter, brew coffee, pack a lunch, or cut a chicken will suffer.
As long as the government is hellbent on spending without a budget and without the debt ceiling even factoring in until 2025, per their insane agreement to delay that, those deficit dollars have to go somewhere. That is massively inflationary on its own as a deficit in one place becomes a surplus in another. The current trajectory is horrifying to look at. The step-change in inflation, even if the rate returned close to their desire, is something the country has had to swallow like drinking from a firehose. That McDonald’s receipt is a perfect example. When Wal-Mart is changing prices every 2 weeks and the market is at all time highs, the longer this persists the more likely it will remain elevated. They cannot seriously consider lowering rates–but that won’t stop them. The interest on the current budget deficit at 5.2% is 100 billion and the interest on the entirety of the debt is soon to approach $2T! I’ve never been more despondent at where we are at fiscally. The Fed caused a monetary problem and ignored the fiscal forces while they dithered using the term “transitory”. They asymmetrically view data, raising rates years after inflation has taken hold while lowering rates at the first sign that the economy might be thinking about readying their foot to approach the edge of tapping the brakes, a mere puff of smoke that someone out there is facing a strain due to higher rates. I’m not sure how this gets resolved as we are no longer able or willing to accept any economic pain that a recession would create–every risk, pain, hardship requires congressional intervention and backstopping with moral hazard embedded in our culture. Can’t even envision us working through this.
Excellent synopsis of the situation we are in.
Minimum wage? Is there any job in the us that actually pays meaningfully less than $20 an hour at this point anyway? What actual effect would this have?
I answered that question if you read.
“Many will counter that few people make the minimum wage. That is undoubtedly true. However, increases in minimum wages place upward pressure on wages across the board.”
Also …
Minimum Wage for Fast Food Workers Jumps 30% to $20 Per Hour in California
Correct. The raising of the minimum wage reduces the spread between skilled worker wages and unskilled. The skilled will demand more $$ for their proficiency.
Helpful tip: if you want to save money don’t eat at freeway service plazas like this guy with the expensive egg McMuffin.
At Panera, a small Mac and Cheese that comes with a tiny bag of chips was $7.29. It’s way les filling than an Egg McMuffin and it was not at a freeway service plaza.
First of all, apparently, no one knows (or refuses) to calculate inflation correctly. The government figures are a total joke and not representative of the “true inflation” rate that is impacting many Americans.
We have essentially an economic politburo bolviating propaganda that the sheep lap up. No one holds them accountable for the bs they try to sell us.
By design my good Man. Inflation benefits the Sovereign and the Elites. It crushes the Working Class and creates a system like LATAM where through repeated inflations there is essentially no Middle Class anymore.