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Pribnow · 3844 days ago · link · · parent · post: How does raising Minimum Wage not cause inflation?
If you increase minimum wage both cost to producers and demand/spending by consumers increases. Theoretically the small amount of inflation accounts for less than the increased demand/spending. Assuming again that inflation is less than the increase in wages, workers will still have more to spend than they did before (even if it's less than if no inflation had occurred). Because humans aren't perfect logic machines it's a lot harder to predict how stuff like this will affect the economy than lots of economists (and especially non-economists reporting what they've heard from economists) will admit. I'm definitely not an economist, though, so I can't really give much more of an argument than the vague argument I've just presented.