But it's not true that rising the minimum wage would immediately be cancelled out by inflation. That would be true only if everybody was earning minimum wage.
Increasing the minimum wage from 5 to 50 dollars is unlikely to cause a 10x inflation, it more likely would cause a 3x or 5x inflation.
The poor would have more and the rich would have less.
It would likely reduce the spread of wealth in the society, improve social cohesion and in general may turn out to be a good thing.
But it's not true that rising the minimum wage would immediately be cancelled out by inflation. That would be true only if everybody was earning minimum wage.
Increasing the minimum wage from 5 to 50 dollars is unlikely to cause a 10x inflation, it more likely would cause a 3x or 5x inflation.
The poor would have more and the rich would have less.
It would likely reduce the spread of wealth in the society, improve social cohesion and in general may turn out to be a good thing.