Re:What harm do minimum wages do?
by throwawaysea on Wednesday August 19, 2020 @03:11PM
(#24214808)
> This will be the case as long as we have monetary policy based on the idea that "100% employment is the apocalypse"
Can you share where you are deriving this from? I don't think monetary policy is based on this idea. I think it is based more on managing inflation and economic growth, with employment impacts being a side-effect.
> It seems like it is accepted as fact that 100% employment would lead to hyperinflation
I also don't think it is that 100% employment would lead to hyperinflation. It's more that full employment might imply inflation has taken place, meaning that a basket of goods/services might cost more (in terms of number of Dollars). But maybe I don't understand the argument here?
Can you share where you are deriving this from? I don't think monetary policy is based on this idea. I think it is based more on managing inflation and economic growth, with employment impacts being a side-effect.
> It seems like it is accepted as fact that 100% employment would lead to hyperinflation
I also don't think it is that 100% employment would lead to hyperinflation. It's more that full employment might imply inflation has taken place, meaning that a basket of goods/services might cost more (in terms of number of Dollars). But maybe I don't understand the argument here?