We should consider the current situaion.
Folks who make the minimum wage and have a child are eligible for welfare, food stamps and other programs. Paying more reduces that welfare cost.
There are indeed lots of jobs that will be lost. I submit that many of those jobs SHOULD BE LOST. The obvious example is that of marginal small businesses that pay the minimum to their workers so that the family owners can just get by. What would happen if these businesses closed? Would the number of people eating out go down. No, of course not. More successful businesses would serve the public. These workers would need to find jobs at those establishments or elsewhere.
Let us say that we are now getting our meal at our local small Chinese restaurant for $25. That price is artificially low because of the sweat shop labor. If these marginal businesses were replaced by restaurants that could succeed if they charged us $35 because labor costs were higher, would society be better or worse off.
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Just BTW, many low cost stores have increased their labor costs. Last I heard, Walmart was not in danger because they pay their employees a minimum of $11 an hour in GA where it is acceptable to pay minimum federal levels. Walmart would survive well with the proposed schedule of minimum wages increase. After all, the current minimum wage (adjusted for inflation) is lower that when it was first implemented so many years ago.
Folks who make the minimum wage and have a child are eligible for welfare, food stamps and other programs. Paying more reduces that welfare cost.
There are indeed lots of jobs that will be lost. I submit that many of those jobs SHOULD BE LOST. The obvious example is that of marginal small businesses that pay the minimum to their workers so that the family owners can just get by. What would happen if these businesses closed? Would the number of people eating out go down. No, of course not. More successful businesses would serve the public. These workers would need to find jobs at those establishments or elsewhere.
Let us say that we are now getting our meal at our local small Chinese restaurant for $25. That price is artificially low because of the sweat shop labor. If these marginal businesses were replaced by restaurants that could succeed if they charged us $35 because labor costs were higher, would society be better or worse off.
====================
Just BTW, many low cost stores have increased their labor costs. Last I heard, Walmart was not in danger because they pay their employees a minimum of $11 an hour in GA where it is acceptable to pay minimum federal levels. Walmart would survive well with the proposed schedule of minimum wages increase. After all, the current minimum wage (adjusted for inflation) is lower that when it was first implemented so many years ago.
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