> The real question is why the misconception that minimum wage increases result in broad upward price spirals is so common when you can figure out why that's unlikely with math most people have learned by the time they're teenagers.

Owners of companies have an incentive to encourage us to think this, firstly because it’s a distraction from the true cause of inflation (their greed), and secondly because a public resistant to the idea of raising the minimum wage helps them keep their profits higher.

> "Inflation begets inflation. When people are expecting price rises they're also more accepting of them," he says…

> "Greedflation is the idea that corporate profit expansion is contributing to high inflation. This has moved from a fringe view to the mainstream in Europe and the US in the last year, and there's a debate going on about it in Australia,"…

> When the governor of the Reserve Bank of Australia, Philip Lowe, last month told the National Press Club that "rising profits are not the source of inflation pressures we have", he was accused by The Australia Institute think tank of a dereliction of duty. A report from the institute earlier this year said that 69 percent of excess inflation – inflation above the Reserve Bank's 2.5 percent target – came from high corporate profit margins.[0]

[0] https://www.rnz.co.nz/programmes/the-detail/story/2018891366...