OT: US President (US Dom Players only)

[NTJedi]

Originally Posted by Agema

There's just no way on earth that paying the very poor another 20% is bad for them. Yes, technically it shifts the median wage upwards and statistically takes more people into poverty. But if another family goes from just above the poverty line to just below it because the extremely poor got a pay raise, it makes pretty much no difference to their household finances.

It's not bad for the very poor it provides the very poor a short term benefit, but it's bad for the working class just above them. When minimum wage increases the vast majority of those small businesses either cut staff and make the remaining staff work harder or raise the prices for food/services provided.
The family above the poverty line which is pushed closer to minimum wage DOES suffer because of the adjustment businesses must make. When I was a teenager I worked in the fast food restaurant and recognized the owner had no choice except to raise prices every time minimum wage increased. One example is our grocery stores with employees earning minimum wage (not the cashiers)... as minimum wage increases the grocery stores balance the increase by raising food prices. There's plenty of articles describing the long term effects of raising minimum wage.

Originally Posted by Agema

Also, when you say other businesses don't match the increase, I don't think you're right by the requirements of basic economics. Companies pay more because they need to attract better staff. When minimum wage goes up, if they want to keep attracting those better non-minimum wage staff they have to raise their wages. This will send ripples outwards increasing wages.

In the majority of cases these other businesses do not match the increase of minimum wage. I've never met anyone such as friend, relative, coworkers who reported receiving a raise because minimum wage increased... unless they were at minimum wage. Simply walk around and ask the employees at small businesses and you'll see. Also the more minimum wage increases the more companies will consider sending call center job overseas!