Quote:
Originally Posted by MX425
The added costs will also only trickle down and increase inflation. So now the grocery store has to pay the stock boy / cashier more money. This doesn't come from a magic safe in the back, they will raise the price on their products, thus raising the cost of living.
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I don't quite agree with this. Inflation is first and foremost (maybe only) a monetary thing - central bankers, who cause inflation, like to blame inflation on people's stubborn insistence on scratching out a living but that's not really the case.
Anyway...I'm not going to demand bread and milk because a stockboy got a raise, and breadmakers and milkmakers aren't going to supply less either. (well, they might if their costs go up to a point to where the supply curve shifts, but let's keep it simple....). If demand doesn't go up and supply doesn't go down then prices ought to remain about the same.
What's more likely to happen is that you and I are going to simply spend more time standing in line at the register or stepping over boxes sitting in the aisle because the grocery store doesn't hire somebody new to replace the last guy that quit.