Nope. If the increase in minimum wage matches inflation then there is no net effect; the VALUE of their wages stays the same relative to the cost of living. ?? I didn't say that. I said that people willing to work for a wage doesn't make sense as an argument against any specific minimum wage. (Size increased so you don't miss it this time.) Right. It doesn't say anything about how raising the minimum wage increases inflation, either. Does that mean that that effect does not exist? Or are there effects of the minimum wage that are not covered in the FLSA? The minimum wage is a good tool to use to reduce poverty, by helping ensure that a person with a full time job doesn't fall below the poverty line. That is not in the FLSA either; it's simply math.