It's amazing that folks who claim to care about the lower class can not understand how raising minimum wage will only hurt them. Forever and a day I hear left-leaners complaining about business people, corporations, and entrepreneurs and I hear them tell us all to put ourselves in the shoes of the poor and consider what it is like. Okay then, how about the reciprocal? How about it the socialists among us put thoseselves in the shoes of businesses then? Let's talk.
Pretend you own a small business, I know that's hard for left-leaners to do, but indulge me for a moment. Let's say your labor costs increase overnight and you realize you can not make money anymore, no profit. What do you do? Well, you do a little tree trimming and you raise prices. When you tree-trim, that means you cut hours and / or employees, and you raise your prices, but when you do, you find you have less business coming in or that if you raise your prices you start to lose most of your mainstay customers. You cut labor again, fewer jobs even still. What about at the corporate level?
Same dynamics but with shareholders (owners) calling the shots. There was an interesting piece in Reuters on February 10, 2014 titled; "Barnes & Noble shares rise on news of job cuts among Nook staff," by Phil Wahba which stated; "Barnes and Noble shares rose by as much as 9.6 percent on Monday after news that the bookseller cut jobs from its team of hardware engineers working on its money-losing Nook digital books and e-reader business.
Right so, Yes, Wall Street is rewarded when it gets ride of dead weight, and lays off employees, you just wait until minimum wage new rules hit! It's basically economics 101. Interestingly enough there was an article in the Wall Street Journal on the same day, an editorial from ABC's chief White House correspondence that suggested; "A Minimum Wage That Will Work" by Robert G. Strayton who suggested that there was "a way to create millions of jobs for people the stimulus did not help."
It appears obvious to me that we do not need a minimum wage increase right now, as we do not have any real inflation, but by creating a higher minimum wage we will automatically have wage inflation within a year or two, then what? Inflation really hurts the poor, more than anything else, especially if they do not own many assets to offset, like real estate for instance. Well, please consider all this and think about it.