Will the increase in minimum wage next month be self-defeating?

Question

Seems the people it's designed to help will be hurt the most. Minimum wage employees shop at stores employing minimum wage workers and those stores will increase their prices in response to the increased payroll. The "extra money" workers get from the minimum wage increase won't buy more because of the increased price in items these workers purchase. Fixed-income people will hurt the most. People buying luxury items might not notice much.

Answer 1

it will create pressures in employers and likely result in higher unemployment.

Answer 2

Minimum Wage does nothing more than pass the cost of production onto the consumer.

Does anybody really think that a business employing a min.wage worker is actually going to eat the cost of that increase?  That business will just raise prices on their widgets, services, whatever.. Which really means that "We The People" get taxed to pay for Min.Wage.

In my opinion, labor should be a commmodity and wages dictated by supply and demand.

Answer 3

And people like me who make a little more than minimum wage - that used to be considered "decent for an entry level" - are now getting closer to being the same as the minimum wage people. My wages don't change, but prices go up anyway...

Answer 4

You forgot that when Min wage goes up fewer people are employed. Min wage wasn't meant to raise a family on. It is meant to bring people out of subsistence. The Minimum that ONE person needs to live and eat and have shelter. If you want to make more money, get more education.

Answer 5

not to mention every time minimum wage goes up, I get closer and closer to being a minimum wage employee.

Answer 6

I think you may have just answered your own question there. If the minimum wage increases, firms hire less workers.

Answer 7

yes we will all go down 2gether