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by Kequc 3974 days ago
As a general rule prices in a capitalist society are already as high as they can be. Any higher and they would be undercut. When a company becomes large and therefore able to produce goods for less money, the price doesn't fall, profit margins increase.

These large businesses are the ones paying employees the federal minimum wage. Only thing that happens is their profit margin shrinks a tiny amount. As long as the profit margin is in the black the business will continue to operate.

It puts more money into the pockets of consumers, who are the drivers of the economy.
2 comments
JonFish85 3974 days ago
"As a general rule prices in a capitalist society are already as high as they can be."

What you're discounting is that once the minimum wage is raised, the market can bear higher prices, and will move accordingly.

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ealexhudson 3974 days ago
It's not a huge number of people on minimum wage that would be affected by an uplift: in the UK in 2014, there were around 1.5M minimum wage jobs, 50% of which in hospitality, cleaning and retail (so, many not full time). The average wage shift would be virtually imperceptible and the extra spending power of those on the minimum wage does not translate to measurably higher prices (in the UK the minimum wage has rarely followed average earnings, and it's difficult-almost-impossible to measure the spending of minimum wage earners separately).
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davis_m 3972 days ago
It isn't just the people on minimum wage that would get a raise. Anyone making between the current minimum wage and the new minimum wage would receive a pay bump.

I don't have the numbers, but I would guess that there are more people within a dollar or so of the current minimum wage than there are actually at the minimum wage. The trend in the US is for people to at least get nominal raises that would technically raise them above minimum wage, but well below the proposed new minimum wage.

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civilframe 3972 days ago
This assumes that the economy is perfect, which is far from the truth. Prices are not already as high as they can be. Such a thing is meaningless in economics.
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