Since the inception of establishing a “minimum wage” the very basic coin of the realm,the cent, has become valueless. Todays penny costs more to make than its assigned value. Even Canada stopped making them..
Yet this is not an argument for abolishing the coin itself. But to point out when a minimum wage rate is raised it affixes a given rate of inflation to the period of time it’s emplaced. All raising the minimum wage does actually is devalue the dollar because costs (purchase prices) eventually get adjusted in time, which is never discussed by those advancing the argument, to compensate for the devalued increase..
When economists discuss monetary value, which is really and should be the purchasing power of that unit. They allways refer to the top value of the coin of the realm. In our (US) case it’s the dollar which is composed of 100 cents. Not the most basic unit which is the penny. Whenever a” minimum wage” is mandated by government The value; meaning the purchasing power of the most basic unit of the currency involved, gets devalued . What governments should be doing is set policies which maintain or increase the value of their most basic unit of their currency. Not support policies with incremental devaluations of it so that those fractional units of their currency in our case the nickle, then the dime, then the quarter, et-cetera eventually become a valueless.dollar .
A case in point is in the 1940’s a candy bar cost 5 cents when the hourly minimum wage was $.50 per hour. What does it cost today ? Likewise what were the costs of basic goods and services during that period of time as compared with todays basic wage feel good tinkering ? The result is that todays everything for a dollar stores are yesterdays five and dime.
Who gets hurt the worst when these adjustments are decreed by government? It’s those living on fixed incomes who’s income and savings value are based on previous purchasing power of previous era wage levels such as social security . They get whacked by devaluation . Because their savings are not adjusted to the previous current rates of inflation. and that also includes living on government subsidies. Eventually those subsidies eventually get increased.but not those living on what’s known as “Life Savings” .
When these feel good socialists frauds under the democrat party banner propose these increases. That is never considered as they pound their breasts claiming they’re for the little guy. All they’re doing is un-necessarily raising the price on goods and services broadening the demand that those affected seek help from them..
So what does Small Business tell a good employee who has been working for 3-4 years and has worked up to $10/hour? We’re not just talking about unions whose wage may be tied to minimum wage.
The hurt to everyone will be exponential in ways that Morons like Biden and his boss can never see, because they have never worked anywhere in their lives.