Are prices already going up to adjust for the new minimum wage?

So coffee went up. I just started paying attention to this now to see if this is in response to the minimum wage increase and possibly obamacare.

Washington, DC – Today the U.S. Senate and House of Representatives introduced the Fair Minimum Wage Act of 2012, companion bills that would raise the federal minimum wage to $9.80 by 2014 and impact millions ofworking Americans. The introduction follows a National Day of Action in which thousands of workers and their supporters held approximately 50 events in 30 cities in a call to raise the minimum wage, boost job creation and address the nation’s growing economic inequality.

source

Just coincidence? How many small business's will this affect? I think most small business is barely holding on. The money in the economy is not real it's getting pumped I to the system by the banks. It's all debt.

Now everyone in the country who this doesn't affect is going to be making less money due to the buying power of their money. Prices will go up for everything.

originally posted by: onequestion
Just coincidence? How many small business's will this affect? I think most small business is barely holding on. The money in the economy is not real it's getting pumped I to the system by the banks. It's all debt.

If you keep using logic, nobody's going to be able to argue with you.

a reply to: badgerprints

I wish more people would understand this. I mean read the link and how this came about.

Oddly enough, I was just telling my GF how happy I am that an election is coming up. Gas in my area has gone done 50 cents a gallon in the last few weeks. Enjoy it while I can I guess.

Are the price increases a result of the minimum wage increase or simply further lowering of the dollars buying power though?

With tons of money getting pumped into the system it was bound to eventually result in the dollar being worth less, wasn't it?

a reply to: onequestion

My two cents is that dollar devaluation (printing money) is what's leading to inflation. It doesn't need minimum wage hikes. In fact back in the 50's, the average house cost $9000 and gas cost 25 cents, and minimum wage was $1 an hour. But minimum wage won't by 4 gallons of gas today, and today the average house cost is $311,400. So we've gone from 9,000 hours of minimum wage work to buy a house to around 40,000. So minimum wage has really devalued as well. I don't know what the effect of raising it will be, but the problems I see are deep.

But that's just my two cents. (which would have been worth a quarter in 1955!)

a reply to: 200Plus

In that scenario they will both probably have a similar affect.

a reply to: tridentblue
That's a lot to consider.

a reply to: onequestion

Which came first, currency inflation or the minimum wage?

The minimum wage is simply a way for the government to ensure workers are, at the very least, earning a living wage. An increase in the minimum wage is not what causes prices to increase. Prices increase due to currency inflation. If prices do go up after a rise in miniwage, those new prices reflect the amount of inflation since they last raised the price and the only reason they were able to keep the prices lower was because they were legally allowed to pay their workers less than a living wage.

The problem is not minimum wage. The problem is currency inflation and the repercussions from the way banks, corporate america and the banks have been playing fast and loose with the world economy.

Fix inflation and you will fix minimum wage and prices increases in the process, so maybe that should be the focus.

a reply to: onequestion

Prices were up before that. You have to appease the stock holders and board of directors. You will pay more for less forever.

a reply to: xDeadcowx

Here's a good chart, notice how when the gold standard leaves, the money printing goes wild, and inflation goes strait up.
www.ecominoes.com...
Also notice that the inflation adjusted minimum wage has gone up and down in comparison, with a peak in 1968, but none of this has effected that straight wild climb in inflation in the chart above. The climb isn't slowing at all.
justeconomicswnc.org...

Prices aren't REALLY going up, the value of the dollar is dropping and is worth less.

A loaf of bread could be bought for a dollar bill at one time but since the dollar bill is worth less now it takes 2 of them to buy the same loaf of bread.

Most people don't understand about how the value of the dollar affects prices of items.

I shop once a month, and save receipts. Every month for the past 5 months I spend $25-$30 more for exactly the same staples.
When I put food in my pantry, I notice how the cans are smaller- the tuna is a tad less in diameter and 1/4 inch shorter. Vegetables, soups, baked beans....the cans are all shrinking.

Cereal boxes have gotten shorter, narrower and have less ounces in them. Some of the most popular brands have stayed the same size, but the ounces in them are decreasing.

Seems upper management will go to any length to increase their incomes. They have resorted to all forms of deception in order to rake in record profits.

Now I'm mad again.

a reply to: mwood

I understand how it works. I have bought items for 5 decades. When the economy gets going does the price drop? hell no.

originally posted by: mwood
Prices aren't REALLY going up, the value of the dollar is dropping and is worth less.

A loaf of bread could be bought for a dollar bill at one time but since the dollar bill is worth less now it takes 2 of them to buy the same loaf of bread.

Most people don't understand about how the value of the dollar affects prices of items.

that's too funny. Bread used to cost 50 cents.

I can remember when minimum wage was $5.15 an hour. I could live on that. Now I have to make 3 times that to have the same standard of living.

Well on the brighter side of things gas seems to have dropped a bit in price in good ol michigan and then Ohio went I went to visit my folks. Although I can tell you all that working at Walgreens and doing price changes I have noticed quite a few things go up; but on the flip side maybe one or two things will go down about 5-10 cents? Since I work nights and we do not do price changes at that point I cannot state as to what they are changing to now. The majority though that I have noticed are all increases and our minimum wage went up from 7.75 to 8.15 I believe.

originally posted by: tridentblue
Also notice that the inflation adjusted minimum wage has gone up and down in comparison, with a peak in 1968, but none of this has effected that straight wild climb in inflation in the chart above. The climb isn't slowing at all.

It's a situation PURPOSELY set up, so that one segment of society always receives an increase...while the rest can only expect to make due, whilst watching their dollar buy less and less as the years roll on.

I have always wondered how banks & corporations can have the audacity to - no matter the economy - expect, no, DEMAND profits year after year - FORBID they "break even", just once. If workers demanded their wages increase yearly as well, we all know who would be on the losing end of that proposition.

This could change immediately, if enough turned their backs on materialism. The problem is, that the poor have had no choice but to do just that. It's the rest that continue the cycle and perpetuate the continued insanity...until it's their turn to surrender.


ETA: Personally I am not poor, nor am I rich. However I have recognized materialism for what it is, and buy only essentials these days, a list that is almost laughingly small. In comparison to the life commercials and society expect one to desire - for the good of the economy, but of course - or at least those running it.

The things that matter most to me are friends & family, good company & good conversation & of course beloved pets; the things that cannot EVER have a value placed on them - by anyone.

a reply to: MoonBlossom

You're absolutely right, it's the focus of materialism in our culture that needs the fundamental change. If we can't do that... well then we're going to destroy ourselves and this planet. We value the accumulation of useless "stuff" over things we actually need. More so these goods that we buy, especially electronics, either quit working in a couple years or go out of fashion.



From my point of view, OP, the USA has corporations and the Governments banker buddies to blame for rising costs rather than minimum wage. Get off the gold standard, keep interest rates low, remove banking restrictions bam! runaway inflation coming to a country near you. Corporations also have their hands in the pockets of our politicians which means that if they were to keep the minimum wage at a rate equal to inflation then well it would be a bit higher than 9.80 and well, corporations really don't want that. Adjusting for inflation it should be somewhere around 10-11 dollars, but some argue anywhere from 15-21 dollars an hour is a more correct number. So while the feds are hoping to raise it to 9.80, it's better but not enough and they know that. Of course they wont crack down on corporation's CEOs and other top brass taking most the profits either...

More things are losing value in this country than the dollar.

originally posted by: onequestion
a reply to: badgerprints

I wish more people would understand this. I mean read the link and how this came about.

Don't feel too lonely there are a lot of use that due. But we're pushed off the side and told to be quite, and to stop trying ruin a "good thing". Seems like all we can do anymore is sit on the sidelines and watch other take their sugar coated poison with a smile.

You can't stop someone from digging their own grave and jumping in, can't even stop others from digging a grave for you as well. But you can fight when they try to push you in it.