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Yeah, but then how would capitalists exploit you?
See, if it doesn’t increase with inflation then there is a good chance they can delay giving you an adequate raise for a long time. And, when they do give you a raise, you’ll probably just need to accept less than if you had been receiving them all along.
I hope you’ll consider the capitalist here. He does need to create endless revenue growth, even if that means squeezing his employees until they can’t afford to live.
Cost of living adjustments need to become a regular and expected demand from workers. Because yes, if they conveniently fail to give you a raise that at least meets inflation every year, they are effectively cutting your pay in a way that the legal system has absolutely no problems with.
Edit: Not just minimum wage, ALL wage. Inflation adjustments are the bare minimum for the company to be maintaining your value. Performance raises etc. need to happen in addition to that.
Got to think about those poor business if they have to pay a nickel more for labor they would be broke
Joking aside, minuim wage is a hot issue. One side fully believes that minuim wage is in fact a bad thing and shouldn't exist. So for them putting a bill out that auto raises it would be counter productive to ~~their interests~~ business being able to hire with supply demand
If a business cannot function while paying a decent wage it should not exist.
Businesses with unrealistic business plans fail everyday, it is a basic function of capitalism.
It is not a society's responsibility to prop up business ventures that waste capital by continuing to pursue uneconomically viable enterprises.
And further more, if a business pays it's employees such a low rate that they need government assistance and the company is so important that they need to be subsidized like that, the company should be owned by the government.
Somewhere, a Walton just sneezed.
They already lie about inflation to make it look like the economy isn't in dire straits. Indexing minimum wage to inflation would make them lie even more.
The minimum wage should include 1 voting share upon the worker joining the company that can only be given up by leaving the company. No voting shares should be held by anyone that isn't currently working at that company
Economists think that directly tying wages or prices to inflation can cause inflationary spirals. CPI is based on prices, and raising wages will eventually raise prices and CPI, so if you raise wages based on CPI, it can enter a positive feedback loop.
It might be ok if the feedback is slow enough or if the minimum wage influences a macroeconomically insignificant proportion of wages.
Economists must think Belgium doesn't exist. See this document explaining how automatic indexation happens for all Belgians (including those on pensions) without there being a higher inflation than in the other countries: https://www.abvv.be/sites/abvv/files/2023-01/Index_EN%20final.pdf A lot of it is: we simply get the raise a little quicker and without a fight, and only have to fight for real wage increases. Where in other countries they need to wait for the next wage negotiations and then fight to keep the real wage and hopefully increase it too.
Belgium is probably also macroeconomically insignificant in the euro zone
We definitely don't want that, since that hurts everyone, sapping value from wages and savings. I'm definitely not an economist. I was just thinking about how long we go in-between minimum wage increases and how it impacts prices every time it goes up. I was wondering if it would have less of an impact if it was raised incrementally instead of sudden big increases.
I was wondering if it would have less of an impact if it was raised incrementally instead of sudden big increases.
It probably does yeah. You can clearly learn sth about power within our system by seeing which jobs adapt their wages to inflation first. Aside from the ones who are in high demand anyway.
The quick answer is cola should be built into the system. Neither party has taken minimum wage laws seriously. States have taken it more seriously than the feds. All jobs should be required to give a cola increase every year.
I'd be okay with that, but only if it is diet.
Yup
Let's tie it to company revenue