Re:When Stockton gave people cash, they got jobs
by txsoftwaredev on Tuesday May 11, 2021 @02:18PM
(#27121508)
They can raise wages, and some companies already have (Chipotle). But they will pass that cost on to the consumer and now your worker's raise is negated as inflation eats it up.
Re:When Stockton gave people cash, they got jobs
by GcVmvNhBsU on Tuesday May 11, 2021 @02:53PM
(#27121986)
The assumes the price of goods outpaces wages raised. NYC minimum wage buys you more McDonalds in NYC compared to Alabama. So the cost of goods in NYC has not risen past the gains in wages.
Re:When Stockton gave people cash, they got jobs
by arcticbull on Tuesday May 11, 2021 @03:52PM
(#27122680)
Inflation is actively managed by the Fed, they can simply constrain supply of money. There's almost no world in which this doesn't happen anyways, given the macroeconomic climate.
I hear a lot of talking heads explaining that there's more jobs posted now than ever but people just don't want to do them. Therefore, we should cut unemployment benefits. My take on it is... how about instead, they raise wages?
It's really strange to hear the exact same talking heads decry that wages have remained stagnant for decades. It's not like the stick is the only mechanism we have to incentivize behavior.
[edit] Labor market prices are a function of supply and demand; a good way to raise wages is to constrain supply. This is a nice way to do that, IMO.