> I wonder how these studies captures the way the workers have more money that immediately flows back into the economy, benefiting everyone.
I think you left out the part about, "and at what point that creates inflationary pressure."
I think you left out the part about, "and at what point that creates inflationary pressure."
On the other hand, if people were going into debt with high interest credit cards, then it's very possible that demand doesn't actually change. Instead credit card debt gets paid off, or surplus income is banked as savings.
Is wage the only cause of inflation we care about? Guess so.