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Originally Posted by nofx
ssp <3 :]
The minimum wage concept, it is believed, can help limit the possibility of deflation of a currency or overall economy. Similarly, it is believed that a maximum wage could limit the possibility of inflation of a currency or economy. This is achieved by the creation of a relative economic bar; meaning that any given economy, relative to its working populace, cannot inflate past the point of the relative maximum wage or deflate past the point of the relative minimum wage. Therefore, the economy effectively hovers between points of inflation and deflation. It is argued that the working populace in an economy that has both a minimum and maximum wage is, therefore, bound to live in the middle of the two economic wage points. This, supporters argue, is advantageous due to the fact that most historians agree that strong economies are supported by a strong middle class.
from wiki
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Yeah that's in line with what I said. It's true that if everybody would spend all their money at once then that would create a hugh inflation, so inadvertantly capping buying power would decrease the risk and the size of inflation, but what you create is a mediocre economy which won't be poor, but will never be rich.
You can compare it to somebody working for a boss for 40 years. You know he's never going to be a millionaire but granted that he doesn't loose his job, he will never have to live in poverty either.