What will happen to the now $15-25 jobs if the min wage becomes $15?

Raising cost of minimum wage does cause the cost of things to go up - but not nearly as much as the wages went up. If someone makes $10/hr now and would make $15/hr with an increase, their income goes up 50%. But a business's costs only go up a fraction of that since their costs aren't 100% labor. So it can cause inflation, but it also essentially makes the poor relatively wealthier vs everyone else. It's been seen time and again everytime we raise minimum wages.

The OP's point is valid about the next tier of employees. I have employees making about $12-$20/hr, and it varies partly by responsibilities and partly be quality of the work done. We can handle raising wages to $15 over a several year period by raising prices some - since our customers will have more money, it's not a huge deal. But it compresses our wage scale and makes it harder to reward our best employees or those that do more. And it's harder for us to compete with jobs that used to pay $8/hr also going up to $15/hr.

Generally speaking, a min wage increase is necessary - it should just be tied to inflation annually and then it wouldn't be. But its a lot lower today than it was in the past after accounting for inflation. $15 is probably an overshoot, but I think a national hike to $10 or $12 over a 3-4 year period would be a good starting point, and then tie to inflation after that.

 

Marginal increases - that's true. But going from $7.25 to $15 over a few years is not really marginal - that's a more than doubling of wage costs in heavily low-wage industries and can't just be accounted for through profit margins.

 

I dont disagree with anything you have stated. Its spot on.

What I have an issue with is the idea that $15.00 is the stop gap to the long term solution. Doubling minimum wage in Seattle is not the same as doubling minimum wage in rural Idaho. Its the blanket statement that bothers me. What do we do in 10 years when 15.00 is no longer enough?

Now as you stated, minimum wage should be loosely tied to inflation and for the most part, the workforce is. In my area, I dont think I could pay someone minimum wage to just sit on a bench and keep it warm for 40 hours a week. Now if I should go 10 miles over to true 'rural' area, people would be happy to make $15.00 an hour in their town. True minimum wage jobs do exist in these towns, however its frequently the mom and pop shops that everyone is so eager to protect from big business like Walmart and Lowes.

There is much more that NEEDS to be done than simply raising wages. Over the years, I have come to understand the greed of corporate america. It comes down to the philosophy of 'A fool and his money shall soon depart'.

 

$7.50 is just a ridiculously little amount of money to pay anyone. That hasn't changed in 20 years - it should be double by now.

 

It put pressure on those wages to go up. Employee have more choices - they can take less skilled works for the same pay. They can become dissatisfied and move to a higher paying job. Won’t happen over night but there will be additional pressure for wages to go up.

A reduction on gov assistance and higher tax revenue help all tax payers.

 

Less than 2% of Americans make the minimum wage. This is a silly argument.
By raising the minimum wage all you are doing is letting a business know instead of
hiring a high school kid you should put in a digital order kiosk.

I don't know why we're even talking about this. 2019 was one of the greatest years for
low income earners in terms of wage inflation, benefits offered and job offers.

It wasn't the government that made those jobs, it was government getting out of businesses
way that made those jobs.

 

Could you point to the examples of when raising the minimum wage resulted in an increase in the unemployment rate?

 

LOL

 

It's called demand side economics...

 

I know! Let's cut taxes for the rich, again...maybe we can even sneak in an entitlement cut or two!!! It'll all trickle do, right??? LOL

 

What happens when people make 30k a year make 40k a year in the year 2020?

LONG LINES FOR TOILET PAPER AND CAVIAR

PUTIN'S DREAM COME TRUE COMRADES

 

This. Higher cost states can build from that increased base.

 

I want to commend @Senator for looking after the $15 - $25 per hour work force. You're doing a real lion's share of work out there.

 

Nm

 

half of all workers make less than $15

https://fortune.com/2015/04/13/who-makes-15-per-hour/

 

Why would people making that wage feel they needed to compete with people making minimum wage? The people making minimum wage and the people making that wage should both know the people making much more than that have plenty to spare and they should be united to get their fair share from them instead of worrying that the guy below them got a tiny break in their pay.

 

Let the market determine the wage but I can tell you one thing... the economy will BOOM!!! because middle and lower class spend 100+% of their income so in the short term they will have an explosion in buying power. Long term wages and the cost of goods and services should stabilize but will still be great for the economy so long as executive wages stay flat because really the inequality gap is the biggest issue now.

 

Most people would not take a wage cut of 25 percent of their income to move to an easier job. .