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[–] Hobnobs 6 points 83 points (+89|-6) ago 

My question is this, if everyone is making more money won't costs just go up to compensate? Won't employers just work people less ours, or fire employees to keep costs down. If they don't, costs will go up for consumers. It just seems like everything will eventually work out to be the same as it is now.

I think that raising the minimum wage is an easy sell. It's sexy, but it's just a band-aid. I DO think everyone has the right to earn a livable wage, especially if they're busting their ass 40 hours a week. What I feel we need more than a minimum wage increase is tax reform and better protections for low level jobs like retail and food service workers.

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[–] Beowolve 9 points 38 points (+47|-9) ago 

Yes you are right. That is what happens. It isn't a permanent solution, just a bandaid on a bigger set of problems.

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[–] tothetop 0 points 12 points (+12|-0) ago 

Do you have any evidence to support this? I feel like this gets thrown around but I haven't seen any evidence to support it.

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[–] josemon 3 points 10 points (+13|-3) ago  (edited ago)

Yes and no. It depends on the business. A corporation like McDonald can afford it easy without rising their prices. They just pay less to make more profit. The rest, yeah somewhat. But more people will be able to afford more as well.People with a lot of money will be able to afford higher prices. In the end it is them that will suffer the most, having their money mean less compared to the average and they are the ones that will resist this the most. I think it's not a bad idea because of the amount of money the Feds have printed has already diluted the economy a lot, and the value of the dollar should reflect this, but doesn't. If they don't inflate eventually it will blow up, just like in Argentina (they were keeping the value of their peso at 1 USD but this did not reflect what was truly going on with their economy, only an illusion)

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[–] Repetitivemotion 0 points 0 points (+0|-0) ago 

it's not a solution to all of our problems, clearly. But people are already working 60 hours a week and still barely paying their bills. Most companies will only have to raise prices by a quarter or two to afford the labor costs. Most people will actually be able to go out and buy products and services, increasing businesses cash flow. And if it was such an easy win as /u/Hobnobs said, then why is it such a hotly debated topic. Seems kind of the opposite.

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[–] FreshieD 3 points 28 points (+31|-3) ago 

That assumes that the cost of goods is directly tied to the cost of labor, which isn't the case. The relative increase in prices is less than the relative increase in purchasing power that occurs with a higher minimum wage.

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[–] 123_456 6 points 7 points (+13|-6) ago 

That assumes that the cost of goods is directly tied to the cost of labor, which isn't the case.

Nope. It has a direct connection. You're 100% wrong. Labor is the main cost to a business.

[–] [deleted] 0 points 2 points (+2|-0) ago 

[Deleted]

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[–] PraiseIPU 0 points 4 points (+4|-0) ago 

Costs go up about $0.30 to every dollar the minimum wage is raised. http://www.fool.com/investing/general/2014/06/08/what-will-a-higher-minimum-wage-cost-you-at-mcdona.aspx

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[–] Rigoleto 0 points 2 points (+2|-0) ago 

I'm on my mobile so I can't link sources, but I'm pretty sure that prices don't double or anything to accomodate a wage increase like this. Prices will go up a buck or two but won't skyrocket. Some guy in a thread similar to this had a bunch of sources for it. I'll see if I can find it when I get home.