[ars]

It's not really that complicated. If everyone has more money, then everyone can afford to pay more, so prices will rise to consume that extra money.

And you are back where you started. Or you have to raise prices again, in a never ending loop.

I suppose you can hand out ration cards for food and housing, so those never have a price, just a government supply. That's the only "out" I can think of to keep the loop from happening.

[glenstein]

I mentioned this in a different comment, but this assumes the uniform distribution of inflation, which isn't how it works.

Different segments of the economy can function as shock absorbers that bear the brunt of inflation, while other segments of the economy see their prices rise more slowly then the increase of wages.

Different sectors of the economy face different degrees of surplus and strain, and the relations between those structures are always up for renegotiation as new money enters the system.

[tshaddox]

You seem to be assuming that all this new money comes out of thin air, which might be a plausible way to think about central banks issuing new money, but it doesn’t seem to be a natural way to think about changing the minimum wage. Changing the minimum wage makes specific things cost more, which isn’t the same as creating new money or “giving everyone more money.”