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[–] NedTaggart ago 

Ok, follow that up and answer me this...

If you double minimum wage, Where does the money come from to pay the employees?

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

If you double it instantly? Nowhere. Businesses fail. Everyone loses.

If you double it very slowly? Then purchasing power for lower income workers slowly rises, allowing them to spend more, thus increasing profits for businesses, which in turn gives them the ability to pay more when the next minimum wage hike comes.

Prices will rise, but not nearly as much as purchasing power. And the community as a whole will benefit: if someone isn't making enough to properly feed themself, buy clothes, go to the movies, go to restaurants, buy a couch, take transit, or see a dentist, then the community is losing possible revenue. But if they're earning more, then they're able to afford these "luxuries" and funnel much of their increased earnings back into the economy.

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[–] Ishamoridin ago 

The business will go into the red briefly before the market adapts, but many businesses operate on a deficit for periods of time, they'll just increase their debt a little comparatively. I'm not saying no businesses failure will be attributable to the change, but it's not going to be nearly as significant as it's made out to be unless people go around scaremongering.

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[–] NedTaggart ago 

You still haven't said where the money comes from. Are you suggesting that the companies foot the bill out of profits? Are you thinking they will pass it off to their customers? Do you implement rules that lowers the companies tax liability so they can pay the employees with the difference?

Money flows in a circle, Who is responsible for providing the extra money to the employee.