Reply to post: Re: inflation

Raising minimum wage will raise something else: An army of robots taking away folks' jobs

Alan Brown Silver badge

Re: inflation

"making the min wage rise....none of a rise....and yes the rise flows up through the immediate chain... those on £8 want £9 those on £9 want £10 etc etc"

They may want that, but what _actually_ happens is that the variation flattens out and more people end up on the minimum wage or only slightly higher as the wages of those below them are lifted.

The economists call it wage compression and it was theorised a long time ago. Observations seem to show they're right on this one.

WRT minimum wage costing jobs: "Yes, but not nearly as many as the monied scream it will" - and people being paid extra tend to be slightly more motivated (there's only a tenuous link between pay and motivation overall once you get to middle-income brackets, but at the low end people who aren't financially stressed out are happier and do tend to work better)

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