Minimum wage hikes cause price hikes

JEFFERSON CITY, Mo. (AP) — At Granny Shaffer’s restaurant in Joplin, Missouri, owner Mike Wiggins is reprinting the menus to reflect the 5, 10 or 20 cents added to each item.
A two-egg breakfast will cost an extra dime, at $7.39. The price of a three-piece fried chicken dinner will go up 20 cents, to $8.78. The reason: Missouri’s minimum wage is rising.

Wiggins said the price hikes are necessary to help offset an estimated $10,000 to $12,000 in additional annual pay to his staff as a result of a new minimum wage law taking effect Tuesday.

Increasing prices cause increasing interest charges,helping the  economists  bit, unless you are one of those Magical Fed economists. 20 states have raised the minimum wage, likely pushing half our inflation rate.

We have a choice. Some economists would have the Fed operate off equilibrium, leading to boom and bust cycles.  Some economists have figured out that it is not nice to force our accounting system off track.