Cost of living and Minimum Wage.
What should we do?
Should we raise the minimum wage? With the country getting more and more expensive every year due to rising inflation along with a higher cost of living. People are starting to wonder if we should raise the minimum wage to combat this. Their argument is that if we pay people more for a service than that combats the rising cost of living. This is true from a perspective after all if we pay people more that allows workers to buy more and become more financially safe. Contrary if we think economically raising the cost it takes to make a product will result in corporations raising the price it takes to sell the product. Raising the minimum wage doesn’t combat rising cost of living. When corporations are forced to pay workers more because of laws then corporations in order to keep their financial status and stay profitable businesses will charge more for their service. So if we can’t raise the minimum wage what can we do?
People want to raise the minimum wage because living is so expensive, so instead of raising the minimum wage how about we make living less expensive. In order to make living less expensive, society would need a crucial set of assets. Some examples include low fuel prices, safe open markets, and low government spending. Low fuel prices would allow corporations and consumers to travel for less. Allowing corporations to transport goods cheaply into our society would vastly elevate supply thus driving down prices. Secondly corporations should be allowed to do business in a safe and open market. If we allow corporations and businesses to come in and compete in our society. Then we create a thriving business environment where consumers have more power in where they choose their money. Lastly, low government spending. Economics is all about supply and demand. This includes not just goods but currency too. If we allow governments to pour vast amounts of money into the system then the power of the currency goes down and cost of living goes up. We should all hold the government accountable for spending because their spending contributes to the financial status of the society.
Raising the minimum wage will not combat the cost of living. Instead, we should put policies in place that enforce the power of our currency. Economics is all about supply and demand, cost of living is rising because demand is rising, and supply is staying the same. In order to combat this, we must increase supply. Lastly to incentivize supply we must create a competitive and cost effective space for business.