Wouldn’t the deportations increase the demand for low-paying jobs resulting in increasing salaries?
[1] https://www.npr.org/sections/thesalt/2018/07/31/634442195/wh...
Would Americans work those jobs if those jobs paid well?
Regardless of the fact that a lot of poor people don't live in the areas where most of those jobs are but they do get their produce from there..
The top 4 counties in the US for agriculture production are all in the central valley in California.
Which in turn will create more pressure to increase the salaries until it reaches the equilibrium that satisfies everyone.
The alternative is to use de-facto slave labor just for the sake of cheap food?
The lower your income is, the bigger the % you spend on necessities like food. So when those go up, the lower incomes are again hit the hardest as they spend a higher percentage of their total income on it. And these are necessities not nice to haves
I am not. You are confusing transient effects with the equilibrium state.
Btw, for low wage employees everything is a significant % of their wage. The only meaningful way to increase their wages is to decrease the supply of cheap labor. This is exactly what happened during Covid where no one was willing to work for $8/hr and the wages went up.
When people realize that their wage doesn’t guarantee good living they will look for a better job or demand a raise.
If a lot of the farm workers in California are gone how does that help the people in Nevada or Michigan that are unemployed... You think they're going to fill those positions?
> When people realize that their wage doesn’t guarantee good living they will look for a better job or demand a raise
Wow... When your job requires no education or training? I guess everyone who works 2 or more jobs in the us needs to talk to you. They're all missing this obvious point.
Rising salaries will lead to inflation. Expecting anything else is fantasy
No. Riding salaries do not lead to inflation by themselves. What leads to inflation is the increase in money circulating on the market. In other words: printing money leads to inflation.
This is nonsense. If an economy doubles and the money supply grows 10%, you get deflation. If the money supply is stable and half the country gets bombed, you get inflation.
Price levels are a function of both money demand and money supply. Ignoring the demand side of the equation doesn’t work.
Nope. This is one of the reasons we had insane inflation after Covid: we printed too much.
For example, here: https://www.investopedia.com/ask/answers/042015/how-does-mon...
You can have an economy with zero money printing that experiences inflation or deflation.
You said in the comment above.
How do you read “price levels are a function of both money demand and money supply” and get that?
Going back to the top, you claimed “riding [sic] salaries do not lead to inflation.” That is nonsense. Even if we ignore that rising salaries cause the money supply to increase through increased velocity, wealth effect and credit creation. (This is why when the economy is strong central banks raise rates to keep price levels stable. You have to destroy money to make up for the money being created by the private sector.)
In other words, to keep inflation at bay, one of the things you do, you restrict money supply.
Again, nobody said money supply doesn’t affect price levels. But in this example, rising wages caused the inflationary impetus without any money printing. To correct for that, the money supply must be reduced.
If you’re piloting a plane, deflecting the control surfaces will move the plane. But so will winds. If winds buffet your plane you have to deflect control surfaces to get back to where you were. That doesn’t mean the wind doesn’t exist.
Rising salaries can cause inflation all on their own. Even in an economy with a fixed money supply. (So can printing money, but nobody was debating that.)
Not necessarily, if price of product A goes up and I have to buy that it means I have less money to spend on product B. Meaning demand on product B goes down so its price goes down.
If we go back to the point that we're talking about, being how it affects the lowest incomes, then you can see how an ever increasing % of their income is locked up in food/housing etc.
By your logic "What leads to inflation is the increase in money circulating on the market." Why is the rate of inflation even a value that isn't known beforehand? Surely we control our own printers, no?