Quote:
Originally Posted by NTJedi
Providing tax breaks to the rich won't bolster the economy or provide higher wages. Increasing minimum wage has not improved the lives of those working minimum wage as the rest of the market adjusts upwards as well... the $1 menu's from fast food restaurants have been disappearing as a result. Another bad side effect of increasing minimum wage is other businesses don't match the increase... thus if you're earning $6.25/HR and minimum wage is increased from $5.00 to $6.15 you're out of luck and closer to the poverty level.
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There's just no way on earth that paying the very poor another 20% is bad for them. Yes, technically it shifts the median wage upwards and statistically takes more people into poverty. But if another family goes from just above the poverty line to just below it because the extremely poor got a pay raise, it makes pretty much no difference to their household finances.
The market cannot shift that far up either. To counteract a minimum wage increase from $5.00-6.15 dollars would take inflation of 20% suddenly occurring. Bear in mind the rest of the population towards the middle class don't see pay rises when minimum wage is increased, so although wage rises are inflationary, the overall inflation is a tiny fraction of the wage increase for the minimum wage.
Also, when you say other businesses don't match the increase, I don't think you're right by the requirements of basic economics. Companies pay more because they need to attract better staff. When minimum wage goes up, if they want to keep attracting those better non-minimum wage staff they have to raise their wages. This will send ripples outwards increasing wages.