On 3/9/2021 11:16 AM, Scott Lurndal wrote:
knuttle writes:
On 3/9/2021 9:16 AM, Leon wrote:
On 3/8/2021 3:46 PM, wrote:

I don't know how many of you worked through 60 and 70's but during that=20
time the minimum wage increased 60%. I was working as a gofur in a=20
grocery store while going to college, and looked forward to each=20
increase, as when the minimum increased Everyone in the store received a =

corresponding raise.

HOWEVER as a result of 60% increase in the minimum wage, we were=20
experienced double digit inflation rates in the 70's as the effect of=20
the minimum wage worked its way through the entire economy.


Come now. The double digit inflation rates were a direct result of
the embargo.

When was that? I recall price freezes on everything on the early 70's.
Before 1974. And I do recall gasoline still being 19cents a gallon in
1972.



Can you cite _any_ research that supports your assertion that the
abnormally high inflation was caused by the minimum wage increase?



The minimum wage was $1.14 in 1961.
It was raised to $2.00 in 1974, for an increase of 86 cents.

Here's research from the Boston Federal Reserve:

https://www.bostonfed.org/publicatio...increases.aspx

Key findings:
A 10 percent increase in the minimum wage in a Metropolitan Statistical
Area (MSA) is associated with an overall (all-items) inflation rate
that is 8 basis points higher relative to MSAs that do not change their
minimum wage. Yet this rise in inflation is not evenly distributed
across all goods and services. Minimum wage increases have the largest
and fastest measured impact on food prices, especially on food consumed
away from home: a 10 percent rise in the minimum wage leads about a 0.3
percentage point rise in prices on food away from home for the first year
after the wage increase, and an additional 0.1 percentage point the second
year after the increase. The rise in inflation is slower to feed through
to prices on other goods and services, primarily due to a slow price response
in the service sector. By the end of the second year, the total city-level
rise in inflation amounts to a 0.3 percentage point increase for a 10 percent
rise in the minimum wage.

Spending on dining out increases, so businesses make more money.

Spending on durable goods increases, so businesses make more money and
more credit is available to lower-income workers.

Debt is lowered in households with lower credit scores.



I know that the democrat activist will blame the inflation on business=20
and the finance community, but they live in a world of their own.


Pot Kettle (no pun intended) Black.


Certainly both sides have guilt.