Any person who does not understand economics will argue that minimum wage being raised is a good proposition, but please, educate yourself if you’re one of those people.
“How could more money be a bad thing?”
If minimum wage is raised, a lot of stupid people are going to be happy at first. They think it means more money to live off of, but what it really means is terrifying. Instead of giving people more, they will print more money to supply the minimum wage demand and throw inflation sky high. Anything that currently costs $9.50(USD) would become $15.00(USD)
The Federal Currency Printers are responsible for creating money, but when they print new bills, there isn’t suddenly more money in the world. Otherwise, there would be an unlimited amount of money, which is a fantasy. Money was once simple and based on real value.
The creation of dollar bills was the beginning of inflation. There were tons of gold and silver apparatuses being used as currency that could be weighed and valued. When bills were introduced, they represented a specific weight of gold or silver. The time was known as the gold standard.
When the government got rid of the gold standard, it allowed the Federal Bank to make loans without having the gold to back it up. The interest earned does not add to the value of anything, but it makes the government look as if it’s helping the economy, when it isn’t.
There is a set value behind the total of money printed in a country. If a country only has a million dollars worth of product, then the more it prints, the less each dollar is worth. The United States has consistently been printing too much money. That’s what inflation is. The number of products and services is not enough to sustain the amount of bills being printed.
The inflation won’t necessarily stop or slow down there. Inflation happens when stocks drastically change or when large investments fall through. It would become very easy for a spiral of chaotic events to lead the world into a WWII German-esque economic collapse.
Share the education for the love of God, please. Don’t let the general public fall for this horrifying trick that could make gas the price of gold and gold unattainable.
It’s happening right now. There really isn’t any time left to waste.