I touched on this in one (or more lol) of my tangents.
Where is this good outcome you speak off? All these western nations are staring down a barrel with the exception of tax/banking havens and nations with a commodity to population asymmetry.
> If minimum gets pegged to inflation, low-income earners will simply take home a bigger portion
The entire economy runs on the margin. Traders get to experience this visually with the orderbook where you have bids/asks and the resulting liquidity/depth.
When you have a minimum wage pegged to an inflation "adjusted" rate, you're opening a Pandora's box of positive feedback loops resulting in the creative destruction of the economy.
This is not just a prediction, its exactly happened to these "20 other countries" including the US (to an extend). These countries use to be industrial powerhouses that accumulated immense wealth during their imperial past, look at them now.
P.S.
Just read your last two paragraphs, don't you see how it reads like a bedtime story?
Energy cannot be created not destroyed. When you dictate every human must have a minimum economic value of X, what do you think happens to the denominator X is measured in?
What do you think happens to an entire subset of low margin businesses that rely on unskilled labour.
What do you think happens to the banks and businesses that invested, loaned or leased land to those low margin businesses.
What do you think happens the streets/towns/cities those businesses to used to exist in?
Moreover, what do you think happens to your country when your adversaries or other countries start eating your lunch.
Again not a guess or prediction, this is whats been happening of more than half a century now and you want to deal with the consequences by doubling down.
Where is this good outcome you speak off? All these western nations are staring down a barrel with the exception of tax/banking havens and nations with a commodity to population asymmetry.
> If minimum gets pegged to inflation, low-income earners will simply take home a bigger portion
The entire economy runs on the margin. Traders get to experience this visually with the orderbook where you have bids/asks and the resulting liquidity/depth.
When you have a minimum wage pegged to an inflation "adjusted" rate, you're opening a Pandora's box of positive feedback loops resulting in the creative destruction of the economy.
This is not just a prediction, its exactly happened to these "20 other countries" including the US (to an extend). These countries use to be industrial powerhouses that accumulated immense wealth during their imperial past, look at them now.
P.S.
Just read your last two paragraphs, don't you see how it reads like a bedtime story?
Energy cannot be created not destroyed. When you dictate every human must have a minimum economic value of X, what do you think happens to the denominator X is measured in?
What do you think happens to an entire subset of low margin businesses that rely on unskilled labour.
What do you think happens to the banks and businesses that invested, loaned or leased land to those low margin businesses.
What do you think happens the streets/towns/cities those businesses to used to exist in?
Moreover, what do you think happens to your country when your adversaries or other countries start eating your lunch.
Again not a guess or prediction, this is whats been happening of more than half a century now and you want to deal with the consequences by doubling down.