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Originally Posted by godfry n. glad
However, redistributing labor activity from high-paying non-productive armaments into peacetime production would go a long way to dampen the short-term uptick in expected spending as the relieved debt-ridden pare down their debt loads and upgrade their living standards.
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Surely that's the effect of the redistribution from munitions to 'useful' products, not from a minimum wage hike. I don't see an automatic increase in living standards because of an increase in minimum wage, indeed, I see no reason why the cost of living should not increase in accordance with the minimum wage hike: Either directly, as higher costs of manufacture/service are passed directly onto consumers, or indirectly as people selling realise that although demand for an item may remain the same, people will be better able to afford something as they're being paid more: They can afford to raise prices on rent, services, goods, whatnot, because the most basic-waged person has more disposable income. I note you touch on this with your inflation comment, but I see no overriding reason to actively bring an inflation problem on in such a manner, particularly given the disparity in effect between the states of a national minimum wage. If the benefit of an increased minimum wage is definite, why are not more states increasing their minimum wages to the $7 or $8 mark on their own? They're obviously legally capable of doing it if they think its a good idea for their economy.
NTM
Re: The first 100 hours agenda
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