What do you think of this argument against raising the minimum wage? (user search)
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  What do you think of this argument against raising the minimum wage? (search mode)
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Author Topic: What do you think of this argument against raising the minimum wage?  (Read 2551 times)
dead0man
Atlas Legend
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Posts: 46,560
United States


« on: April 05, 2014, 05:55:06 AM »

The argument goes like this:

A business employs some people at $10 an hour (which is the minimum wage in this scenario) and other workers at $12 an hour. These are the two lowest pay levels at said business.

Now, the minimum wage gets raised from $10/hour to $12/hour; what happens to the employees who were paid $12/hour before the minimum wage is increased? Their wages won't be increased (or so the argument goes) any time soon, and wage increases for them will actually be delayed, yet they have seniority and experience over the minimum wage employees.

Is this a valid argument?
That's not what happens.  What happens is the guys that were making $12 an hour are now going to be making $13 and either:
A.a small percentage of all "low end" employees get let go and the ones left have to work a little harder (just a little as the person(s) let go will be the worst) or
B.they increse the price they sell widgets at

Neither is as bad as the no minimum wage increase people will say.
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