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RE: 'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing 'If you boost minimum wages you are boosting the economy from the bottom up,' economist argues

in #money8 years ago

I struggle to see what the benefits are. With more money floating around sure in the short term it helps parts of the economy but it causes a scarcity in the supply of goods due to more purchases happening. This causes an increase in the cost of goods (due to being rarer or their reagents being rarer) and now we are back where we started. Higher wages but with the same purchasing power as before.

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The benefit is overall growth for the economy which results in increased prosperity, improved quality of life and a decrease income disparity.