That will cause it to remain a political football just like it is right now, with the political parties fighting over what the "goal for wages" should be.
That's the point of politics in a self-governing democracy. To settle on a common purpose.
Except when you have a two-party system, that doesn't work. Instead, you end up with a yo-yo when the two parties disagree. The U.S. is not really a properly functioning democracy, though it is still several steps up from non-democracies.
You don't want the minimum wage to be too high, because having the minimum wage be just a living wage and not arbitrarily more gives people motivation to work harder to earn more money.
To the contrary. High wages motivate employers to increase worker efficiency. They are the ones that can organize the work force to be more efficient and invest in technology. The idea that workers can be motivated to make themselves collectively more productive is ridiculous.
Yes, and "increase worker efficiency" means "cut the number of workers". Paying fewer people more money is exactly why Republicans think we have a bad economy. And they aren't entirely wrong.
Businesses can do that anyway.
You missed the point. By having a set goal for wages you tell employers how much return on investment they will get from increasing productivity. Higher wages, higher return on investments.
They don't get any return on that extra investment. If every employer is increasing their wages at the same time, the higher wages aren't going to make it possible to bring in higher-caliber workers than the competition. The only way you get a higher return on investment is if you pay more beyond the prevailing wage.
If you think either party is going to set good minimum wage policy, I have a bridge to sell you.
That is an argument against any minimum wage, including one set to inflation.
It really isn't. The fact that the two parties disagree is because they have different goals. One party is more focused on the interests of the individual workers and the other party is more focused on the interests of the wealthy and corporations, and the best policy is a healthy balance between the two. Having a fixed permanent policy should minimize the meddling of either side.
"Inflation" is just a government created artifice to measure the increase in prices. There are several versions and they have all been manipulated over the years for political purposes. So instead of arguing over what the wage should be the political argument is an esoteric discussion of inflation measures that no one can evaluate or participate in.
The problem is that our government hasn't bothered to touch the minimum wage for sixteen years. Fixing that problem so that buying power doesn't deteriorate is an urgent need, and has been for some time. Even an imperfect inflation adjustment is still better than flat wages for decades while cost of living goes up.
Its a way of disempowering people and letting a narrow elite make the decision without any real accountability. People think their social security check will be tied to the "cost of living" until they actually try to live on it.
The cost of living adjustments have actually been pretty reasonable, from what I've seen, at leasts for people who have higher levels of Social Security income. The problem comes for folks living at or near the poverty line. It doesn't take much of a hit to your bottom line to break your finances when you can barely make ends meet, so adjusting once per year doesn't work out very well during periods of rapid inflation. And yes, you're going to have the same thing with anything tied to inflation or any other approach unless you adjust it monthly. That might be worth considering. I have no strong opinion on the matter.
A minimum wage tied to inflation will work the same way. The measure of "cost of living" will be adjusted so that people imagine the wage is keeping up with the actual costs. And the arguments around methodology will be too arcane for people to hold the folks making the "adjustments" accountable.
Realistically, there is no single measure of cost of living that is perfect for all people in all situations or all locations. But even if it doesn't precisely track the real-world cost of living, it can't do worse than sixteen years with no increases. And it is still better than the target growth you propose significantly lagging behind CPI-W, because that would also require an act of Congress to fix (and as previously noted, it has taken 16 years for them to fix it so far).