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Is Minimum Wage the Chicken or the Egg?

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By GrafitiRex @ Adobe Stock

You will often hear arguments over the minimum wage in an inflationary environment. Some argue that higher prices mean people need to be paid more. And other argue that higher pay for employees will push up the prices of goods and services, like $16 cheeseburgers. But when states lock in minimum wages, one thing is certain: prices may stabilize, but it will be a lot harder for them to go back down. Like a ratchet, price floors lock the economy out of declining prices. This year, twenty-two states will raise their minimum wage. You can see the increases on the map below from the Economic Policy Institute:

Action Line: Most of the states raising minimum wages already have high living costs, and many of them already have high minimum wages. Which came first? If you’re living in a high-cost state where politicians seem intent on taking every penny, it may be time to look for a better America. Begin your search with Your Survival Guy’s recently released 2024 Super States. Then, click here to subscribe to my free monthly Survive & Thrive letter.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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