Minimum wage hikes take effect for 880,000 workers across the U.S.

Fast Company ^ | July 01, 2025 | Sarah Bregel

[b4me]

as did greedy Americans who hired illegals as lawn care, nanny’s, house cleaners etc etc and paid them cash as opposed to hiring legal citizens with businesses or self employed trying to make their living.

Too many Americans want to cut corners themselves, then blame others for why we have a problem.

[Bonemaker]

Restaurants closing like flies in Chicago!😀

[econjack]

No, they are not. The higher wage costs are pushed onto the customer as much as possible, but at the higher price, consumers buy less...especially in the short run. Less sold means fewer resources needed, including labor. Unless the demand for the product is perfectly price inelastic (almost never), price goes up and less is sold and some resources become unemployed...including labor.

[econjack]

No, I'm not okay with it, but until the border is really closed, I understand why businesses hire them, but I don't agree with it. To stop it, the illegals should be sent back, but the employer should also be punished. However, I don't know the best way for that punishment to take place. If you put the owner in jail, the business may have to close throwing legitimate workers out of a job. Fines might do the job, provided they don't force closure of the business. It's a tight wire to walk...

[econjack]

It’s the gov’t who controls the flood gates and until now, they did nothing to stop it.

[econjack]

Read my post...that’s not what I said. Also, this is not a 50 cent raise. In some cases, it’s a $4/hr change. Employers will respond to that.

[central_va]

There is no difference between the cost of labor and any other cost. Labor is a commodity.

[econjack]

I'm not arguing that point. What I'm saying is that the employer cannot push ALL of the increased labor costs onto the consumer. Except for cases where the demand is completely vertical (i.e., perfectly price inelastic...almost never), any increase in any cost is shared between the company and its customers. See:

https://www.econgraphs.org/textbooks/intermediate_micro/firm_theory/competitive_firm/price_and_wage_responses

Note, you can drag the parameters using the bullets on the right side of the graph.

[dragnet2]

You don’t seem to get it. The government and big business are riding in the same limo. C’mon. Big biz donated to corrupt politicians to ensure that lawless violent border stayed wide open decade after decades while they gave the taxpayers lip service while looting them. The insiders never had any intention of securing the border prior to Trump. Low wage labor was their golden goose. Profits regardless of consequences.