Most, if not all, laws should include annual inflation adjustments. That includes minimum wage, social security, food assistance, as well as minimum fines for breaking laws. Inflation is built into this economic system. The Fed is mandated to keep inflation at 2%, we should not be surprised that these laws become outdated.
It feels like an unnecessary way to keep politicians relevant since they have to keep voting to update these figures instead of just building inflation into the law.
If the minimum wage would be inflation adjusted, then businesses would need to compete on innovations, good products and efficient processes instead of cutting costs at the laborer.
This would either lead to an inflation loop or permanently lower profits to be extracted for the inept capitalists. Who is going to finance the campaigns then?
It is possible. My country has laws that specify penalties such as “x months in jail and/or a monetary fine of the nth degree” where the amounts for each degree get updated every once in a while.
Most, if not all, laws should include annual inflation adjustments. That includes minimum wage, social security, food assistance, as well as minimum fines for breaking laws. Inflation is built into this economic system. The Fed is mandated to keep inflation at 2%, we should not be surprised that these laws become outdated.
It feels like an unnecessary way to keep politicians relevant since they have to keep voting to update these figures instead of just building inflation into the law.
It is by design.
If the minimum wage would be inflation adjusted, then businesses would need to compete on innovations, good products and efficient processes instead of cutting costs at the laborer.
This would either lead to an inflation loop or permanently lower profits to be extracted for the inept capitalists. Who is going to finance the campaigns then?
It is possible. My country has laws that specify penalties such as “x months in jail and/or a monetary fine of the nth degree” where the amounts for each degree get updated every once in a while.
Agreed, this is probably also why antitrust is pretty shit now