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The Minimum Wage and Inflation


yesterday have mmm mmm I don’t know exactly how I want to
characterize the fellow called but he calls with some regularity from
Virginia and I i think I’m I’m I’m guessing that he’s somebody
who does this for a living but any a he call a buddy said you know do you
really want to raise the minimum wage because then you’re mcdonald’s
hamburgers gonna cost more and we on this big debate about the minimum wage and I just completely neglected even
mention the fact that the hamburger wouldn’t have to cost a
penny more if mcdonald’s made a little less profit their corporate profits not
as theirs for corporate profits in general are at the highest level in the
history the Republic worth their CEOs and senior executives
took a little less money those salaries are at the highest level in the
history the Republic they could easily pay their workers were more bernie we got into the impact you know
the the suppose it inflationary impact to the minimum wage I said please
identify for me any one year since 1939 when the minimum
wage is passed 38 when I was passed when raise the minimum wage produced
inflation he was unable to do that and James came did some math on this and some very interesting stuff here he said the minimum wage has been
increased 22% time since 1939 republicans have increased it eight
times democrats increased it 14 times the average percentage increase was
sixteen point two percent which did not produce inflation and if you look at it in decade-long
chunks and the president is proposing not
raising the minimum wage tomorrow morning he’s proposing minute you know
phasing it in over several years so if you look at it decade-long charts
what you see is that the decade of the forties there was one
hundred and fifty percent increase the minimum wage no significant inflation as a
consequence of their in the decade in the fifties was a 53 percent increase in the minimum
wage again didn’t jack up prices to the
extent that there was inflation all through these times it was very purposeful reduction in the
value of the dollar largely by the fat in order for the
government to be able to pay off its debts with cheaper dollars very simple
stuff had nothing to do with minimum wage the decade of the sixties it was 39
percent increase in the minimum wage the decade up the seventies a 93 percent increase in the minimum
wage the decade of the eighties which was
bush and a reagan it was only a 22 percent
increase the minimum wage in fact a 1 I’ve the carries a time when the
minimum wage really didn’t go out much at all are and inflation was quite significant
during that period time oddly enough the decade of the nineties a 35 percent increase the minimum wage
and the first decade of the 21st century a 40 percent increase the minimum wage
not have those they have produced inflation in fact the
average decade-long increases but sixty-two percent now if you were to raise today’s minimum
wage by 62 percent it would be eleven dollars and 76 cents
an hour which is in the neighborhood have the nine dollars an hour that Obama is
proposing or the ten dollars an hour that Bernie Sanders and others are
proposing ten dollars and fifty cents an hour’s
work would be if we just inflation’s just 22 1968 so once again you know we need to raise the minimum
wage and there will be no negative fallout from

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