Susmakech
Rookie
Yeah my example wasn't exactly right in the sense that it isn't the government who pays the worker, it's the employer. But my point still stands, as it's the government who dictate minimum wage raises. What I meant is they gotta take the money somewhere, it doesn't grow on trees. Whether it is your employer or the government, a bigger payroll automatically equals bigger expenses too. Corporations won't cut into their profit margin that's for sure. So let's take retail stores and grocery stores as an example because 90% of those working in these establishment are paid minimum wage. So the New York minimum wage is of 8,75/hour and you want to raise to $15, it's almost double! That piece of steak or that white t-shirt you're selling for $5 well you gonna need to raise it to $7,50 AND hope that more customers buy it too as that product price raise isn't gonna be enough on it's own for such a radical pay raise. Basic comptability.
Now that being said i'm not qualified to analyse the mid and long term effects of such a radical change, but on the short term, it spells economic disaster all the way. Plus those getting paid above minimum wage, whatever their salary might be, will want and need a pay rise too.
? Companies can try to push that cost to the consumers and cause inflation, so consumers should be better at buying better deals abroad if that happens. When companies wake up to reality, and realize both how much money there now is out there, and they should be trying to get their share, inflation and prices will go back down again.
