The Instigator
Rokgutarist
Pro (for)
Tied
0 Points
The Contender
amoliterno945
Con (against)
Tied
0 Points

Is Minimum Wage Increasing Inflation and Increasing the Average Citizen's reliance on the Government

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Voting Style: Open Point System: 7 Point
Started: 3/4/2015 Category: Economics
Updated: 2 years ago Status: Post Voting Period
Viewed: 597 times Debate No: 71110
Debate Rounds (5)
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Rokgutarist

Pro

Minimum Wage increase = easier to get hands on money = more people have it = value starts to plummet = prices skyrocket = inflation.

That's how it increases Inflation. This is how it's increasing reliance on the Government; Minimum Wage increase = more expensive to hire/keep employees = fewer jobs = more people unemployed = them turning to government welfare programs to get food in their stomachs = increased loyalty to and reliance on the goverment.

The More Leverage on the average citizen the government has, the more power it has.

Well, this will be fun. Let me hear your arguments and counter-arguments to this subject!
amoliterno945

Con

The argument makes sense from an academic perspective and holding "all else constant", but for the situation right now in the US this won't be the case. One fact right now being the federal reserve is having a problem increasing inflation, mostly because people's perceived FUTURE income growth has been reduced. For example, if my salary increases from $20k to $25k am I going to spend more? Probably a bit. However, I won't apply for credit to buy a HOUSE because I don't expect my salary to double or triple in the next ten years because the economy is not expected to strengthen enough. Perceived future income is a big variable because it encourages people to use credit.

Additionally, there is evidence that suggest that younger americans are not only discouraged from investing in the stock market, which has been a huge vehicle on increasing wealth, but that they are also saddled in excessive debt. An extraordinary amount of millennial are burdened by student loans particularly. This deprives them of making big purchases such as homes and cars which have been significant in powering the overall economy, utilizing construction, manufacturing, planning, etc.

For prices to increase you have to think beyond the poor man buying a few more consumer products from the local retailers. Large purchases by many people are needed. We need to see a strengthening middle class for demand to effectively impact inflation.

Several government studies suggest mild increases do not have the effects of job losses and inflation :http://www.dol.gov...
Debate Round No. 1
Rokgutarist

Pro

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amoliterno945

Con

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Debate Round No. 2
Rokgutarist

Pro

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amoliterno945

Con

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Debate Round No. 3
Rokgutarist

Pro

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amoliterno945

Con

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Debate Round No. 4
Rokgutarist

Pro

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amoliterno945

Con

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Debate Round No. 5
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