LogFAQs > #970441869

Overlooking that it'd ramp up inflation, force small business owners to work more hours because they can't afford labor, create incentives to outsource even more labor, jack up inflation, and generally fuck up the country, it sounds like a great idea. But why stop there? Why not go for $25/hour? or $40/hour?

teddy241 posted...

The lower middle class got sucked into the working poor. Meanwhile rich get richer.

Well, the lower-middle class get fucked, anyway -- as does the middle-class whose expenses get pumped up. The rich mostly just stay rich.

It also fucks over a lot of industries.

Lokarin posted...

I was gunna link a bunch of studies... like this one: https://www.nber.org/system/files/working_papers/w12663/w12663.pdf

But it turns out there are too many confounding factors to make reliable predictions without extreme changes to minimum wage... For example, the evidence shows that increasing minimum wage does not significantly affect inflection and for the most part does improve the quality of life of a region... the rate of disemployment also increases, and the degree of such is straddling the line of not knowing if it's a net good/bad or whatever - so it seems more like increasing the minimum wage just vampires more wealth from the bottommost bracket, it's good for everyone except them.

...

But I also found studies claiming the exact opposite... :/

Basically ,unless a grand experiment is done where a large region has either no minimum wage or a very high minimum wage there's no way to know for sure

Overlooking that we've seen massive inflation in recent years partly thanks to increases in wages (and -- in some industries -- continuing supply chain disruptions), this would be a very extreme change. It would effectively more than double the Federal minimum wage and it'd be a huge increase even for states with a high minimum wage (for context, the highest minimum wage at the state level will be $15/hour and this is a 33% increase).