I don’t buy that for a second.
Sorry, have had a busy couple of days.
Inflation won’t affect a fixed rate mortgage, but it will affect the adjustable rate loan.
Hardly the detailed response I gave you. I feel neglected. I propose a new Minimum Attention law that will force other to give me a just amount of their cognitive facilities.
Sorry, but housing, grocery, and gas prices are how we judge how well or poorly the economy is doing - open the business section of your local newspaper - that’s what they’re reporting on. Not the prices of burgers and motel rooms.
You responded with some right wing think tank pieces offering predictions about the effect of the minimum wage. There isn’t a whole lot anyone can say about them, because they are all pretty much back of the envelope conjectures.
Patently false- when the bureau of labor statistics publishes an inflation rate they use the core rate of inflation which excludes highly volatile items, most notably gas and food.Sorry, but housing, grocery, and gas prices are how we judge how well or poorly the economy is doing - open the business section of your local newspaper - that’s what they’re reporting on. Not the prices of burgers and motel rooms.
And you’re right - minimum wage levels have little or no effect on these things.
Again - open today’s business section to the financial page, and read what they are reporting on.
Do local newspapers do nation wide surveys that determine the inflation rate? Does the Fed act based on what is written in the business section of the local newspaper?
Those are the prices that we concern ourselves with, to know what is going on in the economy, and to know whether there is inflation, or not.
“We”? The government employs thousands of economists who’s job it is to determine the inflation rate so that the Fed can set an appropriate monetary policy- guess what? They ignore gas and food since you can’t fix a hurricane that drives up the price of gas and food with monetary policy. You’ve got local newspapers on your side, I’ve got the federal government- you know, the people who actually have the power to define the inflation rate.
Hopefully, we don’t pay those people quite so badly as that - after all, they’re in charge of the safety of our food supply
I’d be quite shocked if farm hands, warehouse/distribution employees, janitors and cashiers made more than minimum wage.Hopefully, we don’t pay those people quite so badly as that - after all, they’re in charge of the safety of our food supply
Right, which is why I said “many (perhaps most) mortgages were negotiated by someone with an ounce of sense and the payment is static throughout the life of the loan.”
I beg to differ.
Job difficulty, required skills and contribution are usually all related, but it’s through the labour market that different sorts of work are assigned an average hourly rate or salary, not an employer’s balance sheet.
I forgot to address this earlier. Your claim is that sound economics says that the minimum wage is a cause of inflation. If you are correct, then I am sure there must be some economists who make this claim. Perhaps you can cite some research. Because if the minimum wage causes inflation I am sure that it must be taught in most graduate schools. Providing the evidence should not be that hard for you.
The minimum wage contracts supply by raising the costs to business.
Nice try. Let’s ignore the fact that if the money supply stays constant then an increase in prices in one area mean they have to fall someplace else. i.e. if we all have $100 to spend and the price of hotel rooms goes up from $50 to $55, then we only have $45 to spend on other goods, so the sellers of the other goods will have to lower their prices to sell their goods.