Argentina hikes minimum wage by 25 percent

[Zippyjuan]

Raising wages to fight inflation is counter- productive. This will raise producer costs which will in turn be passed along to consumers in the form of even higher inflation. A nasty spiral. It may help politically in the short term, but economically it is not helpful in the long term.
http://www.miamiherald.com/2011/08/27/2377300/argentina-hikes-minimum-wage-by.html

The Associated Press


BUENOS AIRES, Argentina -- Argentina will raise its minimum wage by 25 percent to keep pace with inflation.

The minimum wage in Argentina is already among the highest in Latin America. The latest increase raises it to $2,300 pesos, or about $550 a month.

Private analysts say that Argentina also has one of the highest inflation rates in Latin America, along with Venezuela. They say official government numbers vastly underestimate consumer price increases.

Unions had wanted a 41 percent increase in the minimum wage, while business groups started the bargaining at 18 percent. President Cristina Fernandez praised both union and business leaders late Friday night for reaching an agreement.


Read more: http://www.miamiherald.com/2011/08/27/2377300/argentina-hikes-minimum-wage-by.html#ixzz1WFoXvaWf

 

[Petar]

I don't think that a higher minimum wage equals "inflation", but I do think that it leeds to the same effect (higher prices).

I think it makes a lot more sense to define "inflation" as an increase in the money supply, and subsequent currency devaluation.

 

[The Free Hornet]

The least I can pay somebody is zero.

Minimum wage laws define the minimum amount of productivity or value-added service (per unit of time) a worker can have (don't forget to include mandatory insurance and employer-paid payroll taxes or other mandated benefits).

It is a way of putting an unreasonable - sometimes impossible to achieve - burden on the least trained, least experienced, least educated, and least capable workers. The unions push for it as it benefits some - not all - of their members. Ignorance and stupidity cause others to support it. WTG!

 

[libertybrewcity]

i wonder how much miners get paid.

 

[hazek]

Raising wages to fight inflation is counter- productive. This will raise producer costs which will in turn be passed along to consumers in the form of even higher inflation. A nasty spiral. It may help politically in the short term, but economically it is not helpful in the long term.
http://www.miamiherald.com/2011/08/27/2377300/argentina-hikes-minimum-wage-by.html

Don't you think the more important consequence from this idiotic policy is the higher unemployment because of all the jobs that are now too expensive getting destroyed?