inflation

People, especially elected public officials, who are in favor of inflation support things that cause it. A recent example is that the US Congress just raised the minimum wage.

Supporters of inflation lie and say things like the increase will only affect a few minimum wage workers. The truth is that tens of millions of union employees have written in their contracts that if the minimum wage goes up, they automatically get the same percentage in increase.

So if the minimum wage goes up 10%, union workers earning $20 per hour, get a raise to $22 per hour, union workers earning $30 per hour get a raise to $33 per hour, union workers earning $40 per hour, get a raise to $44 per hour, etc.

This starts wage price spiral. The costs of labor go up, so companies raise their prices to compensate for the increased cost. That makes the cost of living go up, so Congress raises the minimum wage to help ( as they claim) low wage workers. What really happens is that the increase gives a raise to well paid union members. This rasies to cost of doing business, so companies raise their prices, etc. etc,.