I had a thought regarding minimum wage and price floors today. My thought is this:
Minimum wage doesn’t have the same severe consequences that other forms of price control (like gouging legislation or gas price caps). Part of that is because the increase is phased in, but I also wonder if some of it is due to that, in the US anyway, prices tend to rise over time. This would mean that any floor would, naturally, be ineffective after a short period (or would become less effective over time).
What I am looking for you, dear readers, is information on other price floors (like milk supports). I’d like to see how accurate my thought is over multiple items. I’d also like to see if linking price floors to some inflation measurement is more likely to cause the negative effects to be more noticeable then a floor that is only set at a nominal place.