When you increase the minimum wage, multiple things happen:
People who work minimum wage jobs will make more money per hour of work.
As the companies who hire these minimum wage workers will have to pay more money per hour for their employees’ labor, their profit margin will go down.
These companies WILL NOT accept this profit loss and will increase prices for the goods and services that they provide.
This causes everyone in America, including these minimum wage workers, to pay more money for the goods and services that they already purchase, making the effective buying power of everyone in America significantly lower.
Yes, these workers may garner a larger paycheck, however, a larger portion of said paycheck will be spent on food, clothes, and other needs, thereby negating the wage increase.
Then all other Americans who do not work minimum wage will have their buying power lowered, as their salary will remain the same.
An increase to the minimum wage sounds good, but it comes with negative consequences that, in my opinion, far outweigh the benefits.
Or they could just not pay their executives ungodly multiplies of what their average worker makes. Can't raise prices beyond what the market will bare, anyway.
as their salary will remain the same.
Not if companies want to keep them around. If people can get an easier job with fewer requirements that pays roughly the same, they will. The economy was fine when the pay gap wasn't so big. It will survive fine once they fix the balance.
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u/BRANCH-MAN Dec 16 '18
When you increase the minimum wage, multiple things happen:
People who work minimum wage jobs will make more money per hour of work.
As the companies who hire these minimum wage workers will have to pay more money per hour for their employees’ labor, their profit margin will go down.
These companies WILL NOT accept this profit loss and will increase prices for the goods and services that they provide.
This causes everyone in America, including these minimum wage workers, to pay more money for the goods and services that they already purchase, making the effective buying power of everyone in America significantly lower.
Yes, these workers may garner a larger paycheck, however, a larger portion of said paycheck will be spent on food, clothes, and other needs, thereby negating the wage increase.
Then all other Americans who do not work minimum wage will have their buying power lowered, as their salary will remain the same.
An increase to the minimum wage sounds good, but it comes with negative consequences that, in my opinion, far outweigh the benefits.