It's high-time that we doubled the National Minimum-Wage in America!

And that's when things get ugly...because when the workers ask if all that insurance money will be given to the employees in higher wages, and the boss says no way...good luck managing those workers...

 

If only you had a clue about business...

 

consumers don't cheer inflation ever they change their spending patterns, obviously!!!!!!! If business could get away with raising prices they would do it, OBVIOUSLY!!!!!!

 

if I didn't you would not be so afraid to say where I don't have a clue.

 

all agree, and???????????????????????????????

 

why should we pay taxes for even that role??? Are adults too stupid to know if the floor is slippery? Should we inspect their homes to make sure they are safe there too. Did our Founders have safety inspectors here to make sure American was safe enough or did they want freedom?

 

And when business cannot increase income to offset forced higher costs then everyone loses...

 

We do build and inspect buildings to help assure safety.

Your founders were clueless about the 21st century...

 

An entitlement is simply an undeniable 'right' to do something or to have something. You appear easily offending and unwilling to accept what was simply presented as a minor correction even when someone has agreed with you in general.

I'll let that slide as pointing out anything I don't agree with 100 percent would probably lead to your taking offense.

 

They simply hire more part timers. My wife's kid has to deal with that. His employer won't give him more than whatever the max number of hours allowed under Obamacare until the employee insurance mandate kicks in. Under no circumstances will they allow him to go over that max, they'll work shorthanded or hire more part timers if they need it.

 

That doesn't cause inflation. It forces a re-prioritization of expenditures and some businesses will go under and many people will lose their jobs.

 

So you think when the cost of business goes up that the prices of goods and services remains static? A business only has a couple of choices; reduce costs and/or increase the prices of their goods/services. If the consumer won't pay the higher prices then the business closes it's doors if the profit picture is not adequate. When the business does increase their prices consumers are dealing with inflation...

 

Why would workers suddenly be worth more to the company?

 

Both of you are right. When overhead prices go up, a business will cut costs by cutting benefits and payroll first. When they cut as much as they can there, they will raise prices to make up whatever shortfall is left.

 

They would not be worth more but others on this thread believe if a company has extra cash some of it should be given to employees in higher wages...

 

That wasn't the point. Inflation is a general rise in price levels. Given a fixed supply of money, if prices rise in one area, they must go down in another area. Inflation is always a function of money supply.

Sometimes increased prices due to costs going up is called "Cost-Push Inflation", but it's not really inflation.

 

No, and it's not what I argued, so don't go throwing that strawman around.

Given a fixed money supply consumers will have to choose to pay more for some things and pay less for others. Are you familiar with supply and demand? As demand falls, prices go down. Some sectors will see reduced prices as consumers spend less in them. Other sectors of the economy will see price increases, but it can't be economy wide because the money supply doesn't increase. It is only increases in the money supply that cause inflation.

 

generally not true,
1) if you can get away with cutting benefits and payroll you do it now since its a super easy way for management to improve bottom line and their paychecks.
2) if you can get away with raising prices management does it now again to improve bottom line and their paycheck or company profits.

 

generally some of it would be given to employees to keep their pay competitive. Any increase in profits thus must be shared with employees. Its an essential aspect of capitalism.

 

We have inflation every year in the US...on average everything increases in price...

 

With low interest rates, and changes to how much reserve banks must hold, ALL of them are lending more money therefore more money supply...

 

You just don't get it...business will only pay whatever they must pay in order to hire and sustain the appropriate employees...period!

 

right, and what they must pay is more than anybody else to be competitive, thus profits always must be shared as they increase. They face the same pressure to provide the best products. Republican capitalism is blessed and competitive. Do you understand?

 

if there was more money in any meaningful sense there would be higher prices. We have not seen that yet although the Fed thinks we are close, but then they have been hoping we were close for 5 years.

 

Yes, and that's due entirely to Fed monetary policy expanding the money supply.