[quote=The-Shoveler]My guess as to what will happen,
Remember this is what I think is most likely to happen IMO, not what I think should happen but what I think is most likely to occur.
The Gov will first raise minimum wage to around 9 or 10 dollars then tie it to CPI.
Wage inflation will then reach about 5 to 6% and may even get to 7% by 2018.
Anyway that’s what I think is most likely to occur but we will see.
There were way too many differences in Fed Gold deposit requirements which kept the fed from printing money during the great depression, so there are no comparisons to what is occurring now and what happened then. Even Minimum wage did not start until 1938.
The wheel barrows of money to buy a loaf of bread thing is not likely in any event.[/quote]
There’s only about 3.5 million worker at or below minimum wage which represents only 2-3% of the total labor force. Over half of those worker are 25 or less. Do you really think a slight boost in minimum wage is really going to get the ball rolling on significant wage inflation across the board. I have my doubts especially with globalism and automation.
