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sabvre42 on 04 February 2016
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Teeqoz said:
sabvre42 said:

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)?

No. Government assistance is better for the economy than forcing the market to use a minimum wage.

Also, a $15 an hour minimum wage would cause a 20-40% cost of living spike depending on your region. The poor would not see their purchasing power go up AT ALL. Minimum wage workers are already compensated by the government. The middle class on the other hand would have their purchasing power go down as employers are not going to adjust the market up 20-40%.