Minimum wage causes inflation. Nothing more.
A 10% increase in minimum wage will, at best, have no impact on a person's buying power. More likely, though, it will negatively impact that person's buying power.
Worse, it will severely lower the middle class's buying power, as people who currently have wages above minimum wage are unlikely to see an increase in their wages. Thus, someone making double minimum wage is now making less than double minimum wage...yet all prices will be higher.
We've dug ourselves a whole with our minimum wage laws. People stupidly expect them and demand them, regardless of their actual worth to a company. Those people don't, however, realize that an arbitrarily mandated wage means fuck-all where it really counts: prices at the store. A person making a minimum wage of $8/hr can buy 2 gallons of gas at current price of ~$4/gal with an hour's work. Increasing that worker's wage (and all other workers who also make $8/hr) arbitrarily to $12/hr does not mean that the person will now be able to afford 3 gallons of gas...he'll still only be able to afford 2, as it'll now cost $6/gal.
The person making $16/hr, though, gets fucked because where he could buy 4 gallons, he'll now only be able to afford 2.5 gallons. He's not getting a raise just because the scum on the bottom rung have had their wages arbitrarily set.
Minimum wages are bad for the economy, and anyone who thinks that wages will fall to $0.01/hr without a minimum wage is a fucking moron.
A 10% increase in minimum wage will, at best, have no impact on a person's buying power. More likely, though, it will negatively impact that person's buying power.
Worse, it will severely lower the middle class's buying power, as people who currently have wages above minimum wage are unlikely to see an increase in their wages. Thus, someone making double minimum wage is now making less than double minimum wage...yet all prices will be higher.
We've dug ourselves a whole with our minimum wage laws. People stupidly expect them and demand them, regardless of their actual worth to a company. Those people don't, however, realize that an arbitrarily mandated wage means fuck-all where it really counts: prices at the store. A person making a minimum wage of $8/hr can buy 2 gallons of gas at current price of ~$4/gal with an hour's work. Increasing that worker's wage (and all other workers who also make $8/hr) arbitrarily to $12/hr does not mean that the person will now be able to afford 3 gallons of gas...he'll still only be able to afford 2, as it'll now cost $6/gal.
The person making $16/hr, though, gets fucked because where he could buy 4 gallons, he'll now only be able to afford 2.5 gallons. He's not getting a raise just because the scum on the bottom rung have had their wages arbitrarily set.
Minimum wages are bad for the economy, and anyone who thinks that wages will fall to $0.01/hr without a minimum wage is a fucking moron.
