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[–] flyawayhigh [S] 3 points 55 points (+58|-3) ago  (edited ago)

Edit: @brainbaobao did a much better job than I did on the studies here, so I cut that part out of this reply. (Less reading for all):D

THE BIG PICTURE

Minimum wage is very low compared to historical standards when the economy was better. If nothing else, we know that we can have a good economy with a much higher minimum wage, since we have before. Our economic problems lie elsewhere.

What this clearly shows is ... the minimum wage is not responsible for bad economics, even if some would lose their jobs in the immediate aftermath. But that too, is tenuous, as the above studies show.

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[–] brainbaobao 0 points 10 points (+10|-0) ago 

I agree. The people who are actually affected are only the people getting paid minimum wage. Those individuals currently do not have much, if any money to spend, and are essentially bystanders in the type of economy we have.

I also agree that we need more case studies on this. These estimates are thrown around as if they were absolutes, even though they don't have much backing at all (I highly suggest Innumeracy for further reading on this, it describes this phenomenon extensively)

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[–] akuta 0 points 3 points (+3|-0) ago  (edited ago)

The people who are actually affected are small businesses that wouldn't be able to pay a minimum wage that raises their payroll upwards of 45% or more... This is not a good thing for small business. It is not a good thing for people who work for less than 15 an hour (because those jobs will be lost), and large corporations that can afford to pay their workers that much still won't and will ship more of their jobs offshore. The only real beneficiaries to this high of a minimum wage are large corporations who then have even more reason to remove local (US) jobs and put them into the hands of people who cost much less to do the work.

The only discernible option for small businesses would be to drastically raise their rates/costs/fees in order to make up for this change, which in turn puts them in a difficult position to compete with large corporations who are doing (and will do more) what is mentioned above.

Edit: I want to note, I'm not against raising the minimum wage... but raising it to 15 an hour (minimum wage is intended for labor that does not require advanced education) is really a bad idea.

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[–] PM_ME_UR_NOODZ 1 points 0 points (+1|-1) ago  (edited ago)

even if some would lose their jobs in the immediate aftermath. But that too, is tenuous, as the above studies show

You're misunderstanding the studies. Studies show the effects of real world examples of wage hikes of like 10-25% scheduled far in advance of when the law takes effect. The market can adapt to that far better than a jump from 7.25 to 15.

Market shocks cause unemployment regardless of whether businesses or the economy as a whole could adapt because it doesn't allow sufficient adjustments. It would even contribute to the "rich get richer" phenomenon because only those with deep pockets could survive. McDonald's, Starbucks, Pizza Hut, they'll find a way. Those little local shops would be toast.