In the most pedantic sense no. Inflation can technically only be created by increasing the money supply artificially. However this has a similar effect venue it applies unneeded artificial pressure to a free market.
This is also happens to be easy way to buy votes, using none of your own money, and has been a tried and true political play for many decades.
> In the most pedantic sense no. Inflation can technically only be created by increasing the money supply artificially.
This is the definition of “monetary inflation” rather than the more common “consumer price inflation” that everyone who isn’t a particular kind of crank means when they use “inflation” unmodified in general use (rather than internally in a very specific academic/research community.)
> However this has a similar effect venue it applies unneeded artificial pressure to a free market.
“Free markets” do not, and cannot, exist in the real world; they are not merely an idealized concept, but actually one that requires assuming contradictory things.
> This is also happens to be easy way to buy votes, using none of your own money, and has been a tried and true political play for many decades.
The long series of advocacy from multiple sides, early legislation, referenda against that legislation, and labor, industry, and government negotiations to reach a mutually tolerable resolution that resulted in this law can be described as many things, but “an easy way” to do anything is not one of them.
(The initial minimum wage increase is a tiny part of the law, whose main function is setting up a new industry regulatory authority with labor, franchisee/restaurant owner, and franchisor/chain owner representation, with general statewide regulatory authority over industry working conditions in the state.)
True, it should be modeled as an input commodity adverse price shock -- as if the prices of some other essential, say wheat or potatoes had jumped by 30% -- though only for restaurants that fit the criteria.
This is also happens to be easy way to buy votes, using none of your own money, and has been a tried and true political play for many decades.