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 and/or living:
“Greeting people doesn’t cost you anything except a roll of your tongue.”
—Chinese proverb.
“For me, as a beginning novelist, all other living writers form a control group for whom the world is a placebo.”
—Nicholson Baker (b. 1957)