The minimum wage argument

I’m going to keep this one fairly simple.

The most consistent argument against increasing minimum wage is that cost of goods is increased to completely absorb it, which since the rest of us don’t get that increase hurts everyone else.

1. Does the price of goods increase when minimum wages are not increased? yes.
2. Is the rate of increase of price of goods more, less, or the same (on average) after a minimum wage increase? the same.

If the ‘problem’ happens regardless of whether the alleged trigger occurs AND when the trigger is pulled there’s no change in the problem, the trigger isn’t a trigger.

Now can we push it to absurdium? Oh, sure, let’s push minimum wages to a million dollars a day or something like that. At that point yes, we’d have forced in inflationary response.

But when the change stays low – to ‘minimum living standard’ or such – then it is neither absurd nor the cause of the problem claimed.

Are there other potential problems? Probably, but not this one.

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