Ok, so the economists have proven that minimum wage does little to help anyone out. And Mitch even had a great post here about the cost of production and minimum wage.
Now the Dems have decided to push through their campaign promise to increase minimum wage by $2.10/hr. That would take it to over $7/hr. But does this really help anyone out?
Yes, those earning minimum wage will have a bigger paycheck. But the inherent cost or anything we purchase is the result of the cost to produce it. When the cost of producing a cheeseburger goes up as a result of the cost of labor to produce it, has the person receiving the raise really increased their purchasing power?
If raising the minimum wage increases the cost of production, those in poverty will still be there, but the cost of their necessities will have also increased.
In Costa Rica, the daily and/or hourly wage is far less than it is here, but the costs of living is also much lower therefore those earning it can still buy necessities. If you raise the cost of labor, you also increase the costs of everything that results from it. But it sounds good and feigns sincerity well to say you support minimum wage.
