A question concerning economics & minimum wage

[Teeqoz]

sabvre42 said:

Teeqoz said:
Higher minimum wage = more spending by people (people with low wages spend more of their money than the über rich ones who just keep their money in stocks/bank accounts etc.) which leads to more demand, more products sold, less crime, and is overall good for society. Temporarily, some jobs might go away as those businesses that rely on paying their workers a sub-livable wage are forced to restructure, but quickly enough, businesses will adjust, and voila, you'll have a better society.

Thats a REDICULOUSLY flawed argument. Minimum wage causes cost of living inflation. If you double their income, they will NOT see double the spending power. The working poor (above minimum wage) and the middle class will actually see their spending power go down, and therefore there will be LESS products sold, and less demand.

Also note that those working at minimum wage now make up more than enough money in government assistance that their spending power will remain the same or go down.

Prices won't increase proportionately to minimum wage increase, not even close. Consumer goods are priced for the middle class, not for the lowest earners, so while prices might increase somewhat, their purchasing power would still be substantially higher. And isn't part of the point that it shouldn't really be possible to have a job yet still need food stamps (or whatever else governmental assistance you mean)?