The cost of goods and services are tied directly to the cost of labor. When the cost of labor rises, the cost of goods and services will rise proportionally.
Therefore, employers will simply pass on the cost of higher wages to the consumer in the form of higher prices for their goods and services. Hence workers will see any wage gains offset by higher prices.
Exactly... One thing that happens in parts of Europe where the minimum wage is very high.. besides crushing unemployment and high costs for things like food..
Is there is no incentive to move up the skill chain. Why give up your job at hte video store making 18$ an hour, to take 2 years training to become a carpenter.. then bust your butt for 22$ an hour?
Minimum wage jobs are for people getting started, and so they can get a downpayment on a student loan in some trade or profession. If Kennedy wants to help these low end people.. stop the protectionism in so many trades which disallows poor people with no connections from getting in.