our dollar is weak

anonymous asked:

wow someone took economics 101. You must also realize then that raising min wage would raise demand for g&s causing revenue to grow and offset rise in cost??? So businesses can maintain profits.

You’re basing the idea that a raise in demand is spurred by more disposable income caused by increasing the minimum wage. This ignores that I’ve already stated people: A) Will be let go from their job if their labor is not valued above minimum wage. B) The inflation associated with minimum wage actually devalues any increase in pay a worker might see. C) Increases in the cost of living can be spurred on by raising the minimum wage. So when people suggest pegging and raising the min wage to inflation, they’re creating a situation analogous to a dog chasing its tail. The cost of living will always rise higher as the minimum wage increases and poor workers will never see their lives improve, all while speeding inflation.

I will concede that businesses that sell exports may see a rise in revenue because a weaker dollar, due to inflation, makes it cheaper to sell our goods and services abroad. The thing is about a weak dollar is that it reduces the purchasing power of each dollar; which is actually reducing real wages.

I took a little more than econ 101.