7 years ago
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Why Minimum Wage Hikes Work, in 3 Charts
The biggest argument against raising the minimum wage is that it’s going to end up cutting jobs. By having to pay each worker extra, the cost of producing goods or services will increase. So, the argument goes, employers will either pass that cost off to customers (by raising prices) or try to find savings elsewhere (by investing in equipment rather than workers, or reducing the hours their employees work). Either way, the total demand for labor will drop.
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If people have more money to spend, they will buy more goods. But this means putting money in then hands of people, which the billionaires don't like. Instead, it's better to threaten to fire people if they have to pay them more.
The argument against raising the minimum wage is a mirror image of the trickle down argument, and it is equally stupid.
Edit: Making the argument clearer.