Why you don't set the minimum wage to $70K

[RolloTheGreat]

$70K people are poor and unsuccessful compared to CEOs.

This would frighten me more than anything else, the resulting inflation would totally destroy my buying power and lower my standard of living. I'm not rich enough to pay double or triple for everything, and if they raised everyone to $70K it's pretty much guaranteed they wouldn't give proportionate raises to those of us who worked and invested in ourselves.

We'd have a society of people making $70-$120K, and everything would cost 2-3X as much.

I'm not too worried though, most businesses would be instantly bankrupted if they went to a $70K minimum wage.

I have news for you.  Raising wages does not magically cause the Mint to print more money.

Inflation is not only tied to printing more money.

http://economictimes.indiatimes.com/defi...-inflation

Cost push inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc.

http://www.investopedia.com/terms/w/wage...spiral.asp

The wage-price sprial suggests that rising wages increase disposable income, thus raising the demand for goods and causing prices to rise. Rising prices cause demand for higher wages, which leads to higher production costs and further upward pressure on prices.

Good examples are Silicon Valley or MS economies, lots of income in area = higher prices.