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The NYT reports that in a unanimous vote, the Seattle City Council went where no big-city lawmakers have gone before, raising the local minimum wage to $15 an hour, more than double the federal minimum, and pushing Seattle to the forefront of urban efforts to address income inequality. "Even before the Great Recession a lot of us have started to have doubt and concern about the basic economic promise that underpins economic life in the United States," says Council Member Sally J. Clark. "Today Seattle answers that challenge." High-tech, fast-growing Seattle, population 634,535, is home to Amazon.com, Zillow, and Starbucks. It also has more than 100,000 workers whose incomes are insufficient to support their families, according to city figures and around 14% of Seattle's population lives below the poverty level. Some business owners have questioned the proposal saying that the city's booming economy is creating an illusion of permanence. "We're living in this bubble of Amazon, but that's not going to go on," says businessman Tom Douglas. "There's going to be some terrific price inflation."
(Score: 0) by Anonymous Coward on Thursday June 05 2014, @09:27PM
Think of it this way.
Something costs 100 dollars today. With inflation in 10 years at 2% it will be ~120.
Now lets say I GIVE everyone 100 dollars. What happens to the price of a good? It naturally goes up. As I getting 'free' money am more willing to spend it. As in effect it makes money worth less...
However, if you want to read up more on it here is a very good source of it
http://steshaw.org/economics-in-one-lesson/chap06p1.html [steshaw.org]
http://steshaw.org/economics-in-one-lesson/chap13p1.html [steshaw.org]
http://steshaw.org/economics-in-one-lesson/chap15p1.html [steshaw.org]
http://steshaw.org/economics-in-one-lesson/chap24p1.html [steshaw.org]
and what that has fuck all to do with the minimum wage.
http://steshaw.org/economics-in-one-lesson/chap05p1.html [steshaw.org]
http://steshaw.org/economics-in-one-lesson/chap19p1.html [steshaw.org]
Min wage is about 1-2% of our GDP however it is 10-15% of our workforce. For me and you spending an extra 50 cents on a burger is no big deal. For people who make min wage they do not come out ahead. In fact they usually come out behind.
But go on thinking obamacare is the best thing ever to happen. Right now it might all be roses. But in about 5 years. *EVERYTHING* in medical care is going to go thru the roof. Like most economic theories people only think 1 step out and forget the golden rule of all economic theories. Everyone is a dick.