Do higher wages necessarily cause inflation, or are we confusing changes in individual prices with a broader monetary problem? Milton Friedman’s ideas provide the starting point for this September 2024 discussion of labor costs, money, purchasing power, and the obligations of a society that expects people to support themselves through work.
I argue that fear of inflation should not end the conversation about livable wages. The episode considers what happens when taxpayers supplement low pay, and whether tax incentives could help small businesses pay more without simply imposing costs they cannot carry. It is a case for examining the whole system (workers, businesses, and public assistance) rather than treating wages as an isolated expense.
Read the essay and sources: https://joelkdouglas.com/2024/09/10/do-higher-wages-cause-inflation/
