quote:
For this to be the case all the goods and services they consume would have to be totally produced by minimum wage workers. If you double the minimum wage then those workers will not have double the buying power but they will not be "just as poor".

Let's say you currently make $12.25 an hour.

Let's say min wage goes from 7.25 to 15.

Are you going to say, wow, thanks, now I'm at 15? No, you are going to demand, because your job is "harder" than min wage, to still be paid that premium to min wage. So, now you are going to want $20.25 an hour. And companies will have to pay it in order to keep production up, or, they will outsource or automate.

Taking min wage to 15 impacts a lot more people than those making min wage. That ripple effect is going to be what drives prices higher and make the poor people (nor anyone else) have any real net impact.

Also, a lot of union wage scales are based as a multiple of min wage. This is the real reason why so many democrats support an increase in min wage, because it results in an increase for union jobs as well.

This post was edited on 7/19/19 at 2:29 pm

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Posted by Obtuse1

Westside Bodymore Yo

Member since Sep 2016

26160 posts

Posted on 7/19/19 at 2:55 pm to LSUFanHouston

quote:
That ripple effect is going to be what drives prices higher and make the poor people (nor anyone else) have any real net impact.

I am aware that there are knock-on effects but the problem with your profer is the price of every good and service the minimum wage earner consumes would have to double for them to be functionally as poor. You certainly have valid points but your hypothesis is a bridge too far.

I get it nobody wants to pay more for the goods and services they consume. It is a very complex situation even for Nobel laureates in Econ to predict so we aren't going to be able to do it on a napkin. I was simply pointing out the logical flaw in your argument. This is another in a long list of topics that the majority of people see solely through a political lens and 99% of the time it leaves both sides incorrect however hard they fight against the notion they could be wrong. It is like arguing the Laffer curve, everyone argues like they know where the top of the curve is but the guy that postulated the curve, with his Yale and Stanford Econ degrees, was the guy smart enough to know he wasn't smart enough to add the numbers on the X and Y-axis.

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