Economy, Inflation and Minimum or Base Wage March 9, 2021
The Evolution of Human Intellect
Inflation is a natural phenomenon of social advancement usually a new product of human intellect and it’s natural result is efficiencies and increased management, including government. This is because as I have said, the production or economy, of a society must be properly managed and utilized by it’s government particularly during developmental (as I believe we have been and are now) stages to be successful. Inflation does not have to be and is not restricted to price but also and mainly, especially currently and during developmental stages, to volume of product and it’s household value. The purchasing power of the majority of our households has not kept up with or been maintained in balance with production costs or output (value or life value) of our society, ‘volume inflation’, associated with the new products of creation, primarily coming under the umbrella of technology or technological advances at this time. Reduced purchasing power of the labor majority of a society causes a gap or loss to governmental revenue which then causes a rise in costs of subsidy or unfinanced welfare at the government level of economic expenditure. Moreover, in the case of America, the government has not kept up with the utilization of new products which yield efficiencies, technological advances, creating a compounded societal monetary loss and burden rather than being the entity of broad and equitable sustainability as it is supposed to be.
I believe a minimum wage of around $15 is very much needed and even required for a successful US society, government, and economy. I don’t believe general inflation of prices is inevitable nor can it come to be as this would cancel the reason of raising a base wage of economical necessity which allows growth of an economy and society and the purchasing power of human development. And while purchasing power can increase productivity or creativity and therefore inflation, as I have said, I believe at this time we will ‘only’ be catching up with our past social advancements and increased prices would be counter to the natural phenomenon of economy of scale i.e. balance, progression, magnitude or size Economies of scale – Wikipedia. This time, as well, our economical, governmental, and societal adjustments may also come with more and greater heretofore unseen or unknown efficiencies of God’s Kingdom, Humanity. Perhaps across the World.
I do have concerns about the rising expense to small businesses caused by an increase in base wage that is in large part derived from mass utilization of technological advances and therefore economies of scale have already been achieved and believe a more social approach to maintain their workforce is necessary. This could come, for example, in the way of healthcare and retirement/investments. It should be paid for by economies of scale, taxes, as a societal redistribution of currency as a result of the common need of product for economic development for and by the betterment of all and it’s retail support. This should be maintained until a new economy of prosperous small businesses form a new ‘hierarchical economy(ies)’ filling the need of community and a new (lesser) cost of subsidy is realized. I do not wish to wait until 2025 to implement compensation base of $15 an hour. Costs of living could be decreased by sharing the costs of common human requirements like healthcare, emergency expenditures, and investment/retirement.
The poverty created by our current minimum or base wage is a reason that unemployment may serve one better than work. Work must provide prosperity as I have written and it must provide principal and serve visions of a future.