It's an interesting paradox... Biden has floated the $15 min wage idea.
With the advancements in automation technology, minimum wage increases mandates won't have the same net impact that they would've had 30 years ago.
Even the CBO has acknowledged that a $15 minimum wage could have some detriments.
https://www.cnbc.com/2021/02/08/rai...would-cost-1point4-million-jobs-cbo-says.html
The net trade-off would be
Pro: you lift 900,000 people out of poverty
Con: 1.4 million jobs lost by 2025
So, unless someone has an air-tight plan to create 1.4 million jobs over the next 4 years (that can't be easily automated away), that swift of an increase to the minimum wage could have a downside.
If you're looking to increase the minimum wage (which I'm not entirely opposed to), the key is selecting the right amount to increase it by.
It can't be so low that it basically has no effect (very few people actually work for minimum wage in comparison to the overall labor force)
80.4 million workers age 16 and older in the United States were paid at hourly rates, representing 58.3 percent of all wage and salary workers. Among those paid by the hour, 542,000 workers earned exactly the prevailing federal minimum wage of $7.25 per hour.
...so raising the minimum wage to, say, 8.25 an hour is unlikely to have any sort of dramatic impact as the number of people making between 7.25 and 8.25 is pretty small.
However, if you make it such a dramatic increase, that a business owner looks at the numbers, and realizes that it's cheaper to hire a few additional software developers and invest in some equipment to automate than to give a substantial portion of their employees a massive raise, then that's what they're gonna do.
Or, in meme-format:
View attachment 298974
So the key is finding the right balance. My gut tells me they should be targeting something more in the ballpark of $9.25/hour to test the waters and observe the net impact for a few years before trying to make the jump to $15/hour.
That also gives small business more time to adjust... Let's be honest Walmart and Target can absorb those increases in labor costs quite easily based on the number of "units moved" in comparison to the number of employees. Walmart could simply increase the price on everything they sold by a couple cents, and entirely offset the new labor costs. A small regional grocery store wouldn't have that luxury. ...and I can't imagine that "worker advocates" would be too keen on supporting measures that would make big box retailers have an even greater advantage over "the little guy".