If you define the value of a dollar as 1/12 hour of a minimum wage worker’s time, why wouldn’t other good adjust their dollar-denominated prices accordingly?
“If you define the value of a dollar as 1/12 hour of a minimum wage worker’s time, why wouldn’t other good adjust their dollar-denominated prices accordingly?’
They probably would, but it would take time, and you end up with the same situation, only the numbers are different. Of course, the minimum wage doest not define the value of the dollar.
It would make more sense to *lower* the minimum wage to $5 per hour. Then the illegal immigrants would have to compete at lower than $5 per hour. Raising the minimum wage to $12 per hour, an illegal immigrant could charge $10 per hour, and still be competitive.