In the short term, there would be layoffs. In the long term, the economy adjusts for artifically inflated wages, through inflation (making the dollar less valuable).
The poor are hurt 2 ways by minimum wage increases...first they get laid off, then, even if they don't, inflation eats away at their buying power.
Minimum wage has only one practical purpose....to get people who don't understand economics to vote for candidates who promise them increased wages. That's why it always comes up around election time.
If anyone seriously thinks that with some voodoo, you can magically make an hour of labor worth more, then why not really use that magic, and make minimum wage 1 million dollars per hour? If (as the people who promote minimum wage increases propose) the magic really works, then why not make everyone millionaires, so everyone can afford large houses in nice neighborhoods, fancy cars, and other nice stuff?

Sounds like you believe in trickle down VOODOO economics. Working people can't afford to buy product to grow the economy if they are just scraping by enough to pay rent & put food on the table.

I wonder how long all the corporate Exec's would last if they had to live on minimum wages.

Voodoo, is when someone thinks that with the wave of a pen, they can magically make an hour of labor more valuable.
I say fine...if they think magic works, then prove it! Raise the minimum wage to $500 per hour nationwide. Follow low-income workers for 2 years, and see if their standard of living changes.

If anyone would want to see what an increase in minimum wage would do. Just consider is the minimum wage was raised to $50 an hour. It would be good by jobs and good by companies.

are you hiring? LOL

Best Answer.

Why don't you look up the studies that were done rather than spreading this kind of gloom and doom propaganda?

not if like i said the price of living went down. they would be able to afford to pay higher wages. secondly people would be able to afford to live as well.

Same tired old neo-con economic blah-blah, mac. Despite screams to the contrary, increases in minimum wage have no inflationary or negative employment effect.

If this is really true, then why stop at a few cents raise? Why not go for serious raises? How about $200/hour? If there are truly no inflationary or negative employment effects, then wouldn't it make more sense to bring people into the upper class, instead of simply letting them scrape by with a few cents increase?

Ed, hyperbole does not help here.

The claim is that minimum wage increases have zero inflationary impact, and zero negative impact on unemployment levels.
The claim is either true or false. If you are so confident that it is true, then let's go ahead and raise the minimum wage significantly. Let's put all low-income workers in the upper class. Since there is zero risk to the economy, I don't understand the hesitation.

ill, comment on this later, k my man works for you know who.. =)