Cost of Living
Every time the government raises the minimum wage, prices must theoretically rise as well. Some states have a cost of living wage that requires a business to add an additional wage to the minimum wage. The workers make more money, then spend more money, and this gradual inflation is related to the rise in cost of living. The minimum wage is an extremely minor part of inflation or cost of living increases. In fact, the minimum wage has not kept up with inflation over the past 30 years. Inflation has much more to do with monetary policy and credit.
Read more about this topic: Economic Issues In The United States
Famous quotes containing the words cost of, cost and/or living:
“It is not enough for theory to describe and analyse, it must itself be an event in the universe it describes. In order to do this theory must partake of and become the acceleration of this logic. It must tear itself from all referents and take pride only in the future. Theory must operate on time at the cost of a deliberate distortion of present reality.”
—Jean Baudrillard (b. 1929)
“It may cost me twenty thousand francs; but for twenty thousand francs, I will have the right to rail against the iniquity of humanity, and to devote to it my eternal hatred.”
—Molière [Jean Baptiste Poquelin] (1622–1673)
“In my short experience of human life, the outward obstacles, if there were any such, have not been living men, but the institutions of the dead.”
—Henry David Thoreau (1817–1862)