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Why is it that wherever minimum wage is highest, the cost of living is highest?

Landon Caeli

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Just curious if anyone has ever noticed this, and if so, what are some of the arguments that can prove that correlation is not related? If we all agree that increased minimum wages are in fact related to inflation and increased costs of living, then how do we justify this as a good solution, when it obviously hurts even those whose wages are increased?
 

essentialsaltes

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what are some of the arguments that can prove that correlation is not related?
Why would anyone need or want to do that? Let's grant the correlation. Next up is determining whether the two factors are causally linked. And then which direction the arrow of causality points.

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Landon Caeli

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Pommer

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Why would anyone need or want to do that? Let's grant the correlation. Next up is determining whether the two factors are causally linked. And then which direction the arrow of causality points.

View attachment 377018
So to fight climate change, we need more pirates?
 
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BNR32FAN

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Just curious if anyone has ever noticed this, and if so, what are some of the arguments that can prove that correlation is not related? If we all agree that increased minimum wages are in fact related to inflation and increased costs of living, then how do we justify this as a good solution, when it obviously hurts even those whose wages are increased?
It’s always been this way. When I was 15 years old the minimum wage was $3.35 in Texas I believe, but I got a job in Waikiki Hi. at Jack in the Box starting at $5 per hour. That was over 35 years ago. That’s why I’ve been telling my kids if you want to get a boost in life, get a job in a place with a high cost of living like Boston, Chicago, LA, New York, etc and work towards buying a house. Once it’s paid for you can sell it and move back to Texas and buy 2 houses, one to live in and one to rent. Or you can buy a house and start a small business. And it’s not just minimum wage that is higher it’s pretty much all wages across the board that are higher in high cost living areas. When I was doing concrete demolition in Texas about 10 years ago for $20 per hour, people in Chicago were getting around $35 per hour for doing the same job.
 
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RileyG

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A simple explanation is that when cost of living outpaces minimum wage wage, then minimum wage wage increases to compensate.
Yeah, that makes sense to me!
 
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Oompa Loompa

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A simple explanation is that when cost of living outpaces minimum wage wage, then minimum wage wage increases to compensate.
I have a feeling that this is going to be a chicken or the egg argument.
 
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sjastro

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Why would anyone need or want to do that? Let's grant the correlation. Next up is determining whether the two factors are causally linked. And then which direction the arrow of causality points.

View attachment 377018
I am always wary eating icecream when having a bath.

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Fantine

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  • Alaska: $14.00 (effective July 1, 2026)
  • Arizona: $15.15
  • Arkansas: $11.00 (for employers with 4+ employees; $7.25 for fewer than 4)
  • California: $16.90
  • Colorado: $15.16
  • Connecticut: $16.94
  • Delaware: $15.00
  • District of Columbia: $17.00
  • Hawaii: $14.00
  • Maine: $14.15
  • Maryland: $15.00
  • Massachusetts: $15.00
  • Michigan: $10.33
  • Minnesota: $10.85
  • Nebraska: $12.00
  • Nevada: $12.00
  • New Jersey: $15.92 (6+ employees) / $14.23 (fewer than 6)
  • New York: $17.00 (NYC, Long Island, Westchester) / $16.00 (rest of state)
  • Oregon: $16.30 (Portland metro) / $15.05 (standard) / $14.05 (non-urban)
  • Pennsylvania: $7.25 (federal applies)
  • Rhode Island: $16.00
  • South Dakota: $11.85
  • Vermont: $14.42
  • Virginia: $12.77
  • Washington: $17.13
  • Washington, D.C.: $17.00
States with federal minimum wage ($7.25/hour) Minimum-Wage.org+1

  • Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia (some localities higher)
Pennsylvania and Virginia aren't low cost state, and neither are many parts of Texas and Georgia.

It would be more accurate to assess poverty levels to see whether wages in certain states are adequate or inadequate. I imagine most minimum wages are inadequate--but how inadequate.
 
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