A question concerning economics & minimum wage

[SuaveSocialist]

Azuren said:

SuaveSocialist said:
Minimum wage was designed to rise with inflation/cost of living/productivity, but wound up stagnating a few decades ago. Bumping it up to 15$ would put it at the level it's supposed to be at, and with certain safeguards in place would continue to rise with inflation/cost of living/productivity. The middle class would be healthier/growing and that is good for the economy.

Except the assholes at the top of every company wouldn't except that, and raise prices across the board to continue making the disgusting amount of money they're making. So no, it wouldn't help. It would cause a depression or inflation.

That exact argument was used to prevent the implementation of minimum wage in the US inthe first place.  The doomsday prophecy didn't turn out to be true.  That exact argument was used to prevent spikes in minimum wage in the US before.  Again, the doomsday prophecy didn't turn out to be true.  

There's a historical precedent for minimum wage rising without triggering a depression or runaway inflation.  In fact, there's a historical precedent for a healthy minimum wage playing a good role in a healthy economy.

In the US, minimum wage has stagnated when compared to cost of living; the middle class has been shrinking for decades and objects in motion tend to stay in motion until acted upon by an equal or greater force.  When minimum wage does not meet the cost of living, the middle class disappears.  If you want to picture the US without a middle class, take a look at how Mexico is coping.

Believe whatever you want, though.