Inflation - what is it?

[shpritc]

Off-topic, mind explaning how raising minimum wage increases inflation? I probably sound naive, but it just seems counter-intuitive to me

It raises the cost of doing buisines, thus raising the cost of goods produced, thus making the money you made less valuable.

What people forget is raising minimum wage has the effect of raising all wages across the board over time. For example if you make $7 an hour, but the minimum wage is raised to $7 an hour, so all the less skilled employees under you are now making the same as you, you would demand a raise right?

By the logic of raising minimum wage, you might as well make it so everyone makes at least $100,000 a year no matter what. Think about what would happen if that was enacted, and you will understand how it causes inflation.

Also to Older then dirt, since when did inflation stop any government from forcefull tax gathering.

 

[KrikkitTwo]

I'm no economics major, but it seems to me that inflation is then an inevitable side-effect of a progressive economy. Deflation might theoretically help to bring it under control, but to my knowledge it usually only happens when the economy suffers as a whole, not as a deliberate tool to counter inflation.

well if a "progressive economy" is one where even the poorest people have a lot of money then inflation is great for that (there are people in Zimbabwe making 10x more "money" than they were last year.. the fact that they are starving on that money is the problem inflation causes)

If a "progressive economy" is one where even the poorest people can buy a lot of stuff.... well that means it depends purely on high productivity for even the most menial job and/or Redistribuition of wealth (where wealth is taken from the people with productive jobs and given to those without productive jobs)... inflation/deflation is an unrelated factor.

Inflation/deflation has little to do with overall economic growth (it does have something to do with it but only a little)

 

[boarder]

You should be able to build buildings that control inflation.
It is annoying when its extremely high.
Its like they don't want us to be able to have a huge empire, what with city costs and inflation.
Takes some of the fun out of the game IMO.
Who wants to have 6 citys,not me I want 60

 

[KrikkitTwo]

You can easily have a Huge empire... The MOST one City can cost on Deity level is

8, # of Cities cost (4 with courthouse)
~10, Distance Cost (5 With courthouse... most will be less)
19 Civics (Police State, Caste, Environmental, OR, Vassal)

for a total of 28
add in max inflation (100%) and that is 56 gpt per city

Assume 3 Trade Routes of 2 each... and one on the city tile
That requires 10 Cottages per city (no Free Speech) if you have No Marketplaces, Banks, etc.

If you build Marketplaces Banks, etc. that requires ~4 Cottages per city Easily Achievable


If you have Free Speech, then it is 7 or 3 Towns per city (depending on Presence of Merketplaces, Banks, etc.

If you pick any other Economic civic you get a boost as well (not just cost savings)

A size 60 ciy empire is possible, it just takes time and work.

 

[kcbrett5]

However, my family explained how this was a bad move. Here is why.

You should stop listening to your family. This theory of yours is pure lunacy. The minimum wage hasn't increased since 1998. Are you suggesting that my cost of living in 2006 is the same as it was in 1998? I guarantee you it isn't. Every year my rent goes up, my utilities go up, my groceries go up. I don't have official stats but the cost of living goes up 2-3% every single year. So by holding the minimum wage constant, you are just increasing the # of people who live in poverty. Their income stays the same, while all costs go up anyway.

You sound like you have drank a bit of the neo-con republican kool-aid.

 

[KrikkitTwo]

Minimum wage isn't the Only (or even primary) cause of inflation, but it can contribute.

 

[King Flevance]

You should stop listening to your family.

You should stop quoting people before you read their post.

This theory of yours is pure lunacy. The minimum wage hasn't increased since 1998.

Then the idea of taking minimum wage to 4.75 came out. Of course, naturally, I was all about this as it meant more money in my pocket or so I thought. (months later it raised to the 5.15 it is now)

This is what I am talking about. In '96 it went to 4.75. Sometime after, '98 if you say so, it went to 5.15.

Are you suggesting that my cost of living in 2006 is the same as it was in 1998? I guarantee you it isn't. Every year my rent goes up, my utilities go up, my groceries go up. I don't have official stats but the cost of living goes up 2-3% every single year.

Dude, read. I covered this, as a matter of fact it was my point.

So by holding the minimum wage constant, you are just increasing the # of people who live in poverty. Their income stays the same, while all costs go up anyway.

Actually, poverty has their income drop slightly. I covered all of this, you didn't read.

You sound like you have drank a bit of the neo-con republican kool-aid.

You sound like you drank before coming to the forums.


EDIT: LOL! I just realized I think you are under the impression that cost of living has nothing to do with minimum wage. So if minimum wage was raised to 1000/hr it would have no effect on cost of living. You need to run for congress.

 

[kcbrett5]

OK. I just realized that you don't even know your own point. I will simplify mine to make it easy for you to understand.

Minimum wage has not increased since 1998. Inflation has increased every year since 1998. Therefore, inflation is not a direct correlation with minimum wage.

Got it? Or do you need more help?

 

[King Flevance]

I never said it was the sole contributer. I said it is a factor. If you don't belief it is a factor - dont simplify, elaborate.

One of the reason inflation has went up over the last 8 years is due partly to minimum wage increasing. The economy is adjusting to the switch, this takes time. If it has nothing to do with inflation, $1000/hr will not effect the economy at all. IN fact, from all I can gather form your arguement, raising minimum wage to 1000/hr is the solution to poverty.

 

[saleg37]

OK. I just realized that you don't even know your own point. I will simplify mine to make it easy for you to understand.

Minimum wage has not increased since 1998. Inflation has increased every year since 1998. Therefore, inflation is not a direct correlation with minimum wage.

Got it? Or do you need more help?

Dude, calm down.

Nothing in the economy is affected by just one thing and everything takes time. Saying that one thing can be a little...off... doesn't neccessarily mean that by eliminating that thing is a be-all end-all cure, in this case, the relation between a raise in minimum wage and a rise of inflation.

Isn't Japan's economy in deflation? It is possible to do. But what effects would that have on an economy?

 

[naterator]

sounds like you're drinking some kool-aid of your own there, kcbrett5. if you increase the cost to produce and distribute goods, then you increase the cost of those goods.
Got it? Or do you need more help?

 

[NT_Jedi]

Raising minimum wage is bad on many levels...
first it will cause the price of most things we buy to increase. I know this because way back when I was working for Arbys restaurant. Min wage went up and the owner then explained he would now raise the price of all the food... which he did.

second bad effect is that most companies do not compensate for the increase of minimum wage if you're earning above minimum wage already. Thus if you're earning $7 or $12 and hour and min wage increases the only thing these people get is to pay more money out of their pocket for lunch.

third bad effect is raising minimum wage encourages companies to pay under the table... even go as far as paying illegal immigrants. Why do they turn this direction because they want their company to survive. I won't give any company names, but I've seen hotel staff and cleaning companies which had employees that spoke zero english. Here's just one story... while working for a big well known hotel I noticed their entire cleaning staff spoke zero english(20+ people).

 

[shpritc]

Not to mention pretty much anyone working for minimum wage should be either in high school, retired, or its a second source of income. If you dont fit into those categories and your living on minimum wage, you need to seriously rethink your life.

 

[saleg37]

Not to mention pretty much anyone working for minimum wage should be either in high school, retired, or its a second source of income. If you dont fit into those categories and your living on minimum wage, you need to seriously rethink your life.

I would throw into that category any immigrant who comes here, and works in order to learn English and adjust to the new culture.

 

[shpritc]

I would throw into that category any immigrant who comes here, and works in order to learn English and adjust to the new culture.

Actually a fairly large percentage of legal immigrants come here and bust there buts, often owning thier own busines, they usually have the right attitude to take advantage of opportunities here.

Ilegal immigtrants, at least the ones I know, are usually paid under the table, thus no taxes so often they are doing better then minimum wage as well.

Getting paid better then the minimum wage is not difficult.

 

[sherrick13]

A minimum wage is horrible for the economy.
All it is is a price control on labor.

Imagine if the .gov enacted a price control on gasoline at $5.00 a gallon. No one could charge less. What would that do to our economy? Price controls on labor have a greater effect because labor is even a larger part of the economy than gasoline.

You are paid what you are worth. If minimum wage is not enough than make your labor worth more.

The guy that said just make it $50 an hour is right on. If we can legislate poverty away than lets just do it. Make companies pay everyone $100k a year with a 4 bedroom house and a Mercedes. Viola no more poverty.

 

[cfacosta]

Pragmatically....minimum wage has very little effect on either inflation or poverty. The federal minimum wage is not even worth anything because most states have their own, higher one. Beyond that, a very small percentage of the country works for minimum wage. The primary problem for those below the poverty line is not wage rate, but getting a job in the first place.

Really, minimum wage is used more as a political tool than a method of achieving anything. Currently it is being used by democrats to try and get votes going into midterm elections and by republicans attempting to use its enforcement to curb illegal immigration. Neither party is really trying to control inflation or poverty.

 

[oneeye]

So if you choose the slavery civic that should get rid of the minimum wage increase inflation problem right?

Hey do you think bush already clicked us to police state/ theocracy on the sorry game of civ he's playing?

go republicans....

 

[porkdiesel]

Insert mouth into balloon --> blow outwards.

Haha, i'm pretty sure you want to insert the balloon into your mouth, not hte other way around!!

 

[cfacosta]

No cuz if he was a real warmonger, we'd be rampaging through China right now. Everybody knows you always bring down the strongest civ first. The weak guys in the desert aren't gonna add much to our domination score.