Deflation Could Cause First Minimum Wage Cut Ever

[bobbyw24]

Deflation Could Cause First Minimum Wage Cut Ever
Vincent Fernando|Oct. 15, 2009, 1:34 PM | 761 |6


Deflationary forces might take their toll in a very tangible way for Colorado's minimum wage earners.

The state could be the first ever to adjust down minimum wage due to a falling consumer price index. While the minimum wage will only fall four cents per hour, if passed it will clearly be an extraordinary example of discipline.

USA Today: Other states with adjustable minimum wages have seen their consumer price indexes fall, such as Ohio. But Colorado is one of the few states where the law is interpreted to mean the wage can fall. Other states are planning to keep wages flat.

In Florida, deflation would reduce the minimum wage to $7.21, but the state's minimum wage already matches the federal wage, so Florida workers' paychecks won't change.

The change will be subject to a public hearing. If in the end Colorado's wage adjustment gets shot down, then we'll be reminded once again why it's so much easier for governments to err on the side of inflation.

And though this will be controversial, this is a good move on Colorado's part. One reason, many economic historians believe, that the Great Depression was so damaging, and caused so much unemployment, is that while prices fell, labor costs could not adjust.


http://www.businessinsider.com/deflation-reduces-minimum-wage-2009-10

 

[FindLiberty]

The good signs that I still want to see are: CONSTITUTIONAL SOUND MONEY RESTORED and Ponzi schemes exposed.

Another good sign would be reducing the size and scope of gubermint, slashing all forms of taxes, and immediately reducing all government employee wages and benefits BY AT LEAST 30%

Hope for the future would involve repealing even more laws, restoring Constitutional government, AND MAKING EVEN LARGER CUTS IN THE SIZE AND SCOPE OF GOVERNMENT.

The nation would stand a better chance of recovery if the minimum wage is reduced to zero, and when all the parasites are removed from the host.

 

[MichelleHeart]

Yes, employment is needed more than ever. As much as I'd like to believe that a consistent deflation rate will occur, we're only going to see hyperinflation post-recession with the way things are going right now. With the Fed printing more money, increasing the money supply, spending debt, and destroying the dollar, we're screwed.