Minority unemployment would skyrocket.
#5 is all you need to know.
When this whole up the minimum wage thing got started there was a video of a vending machine that makes gourmet burgers.
OK libs, go for it and watch the uneducated idiots who made bad life choices get replaced,
Of course that is the true lib endgame - total reliance on the gummint
Many years ago when I worked for the DC Wage Board I learned that Union contracts had their wages tied to the Minimum Wage. In other words, raising the minimum wage hiked MANY wages!
Set the minimum wage to $X/hr.
The consequence of that is to make it illegal for anyone with skills worth less to the marketplace than $X/hr to be employed.
The REAL reason for the push on Minimum Wage, is most Union Contracts start their scale at a give amount above minimum wage.
So when Minimum Wage goes up, EVERYONE in the Union get an immediate raise. . .
That's a good thing. Who doesn't want to reduce the welfare and disability roles? The key is to create the environment where there are jobs for them.
2. Encourage businesses to outsource or seek other means of reducing head count such as employing software or hardware robots.
Yes, import tariffs are important to keep jobs from going off-shore. Robotics is coming and we will be dealing with the fall out sooner or later.
3. Encourage more immigration if businesses cannot find ways to reduce headcount.
Failure to address immigration will ruin this country, regardless of what we do with minimum wage. It might ruin it a little faster if we raise the wage but leave the borders open.
4. Ultimately, businesses would have to hike prices, accept lower profit margins, or find other ways to reduce costs.
That's true. The economy will seek equilibrium again. But it is not super fast. Thus the short-term effect of raising the minimum will have real benefits or consequences.
5. If businesses chose to hike prices it would put upward pressure on price inflation. In turn, unions would demand still more wage hikes.
Unions are unions. A zebra is not going to change it's stripes just because you put in a minimum wage hike. Policy should not be based on what unions might or might not do.
6.If businesses chose to eat the costs, it would put negative pressures on the stock market.
Probably. But if the flow of funds to greater numbers of individuals results in increased demand in the marketplace, that would result in positive pressures. Hard to know which will win in the short term or long term.
Everybody in our country would be playing by the same rules, but raising it without restoring the import tariffs is crazy and will result in more off-shoring.
If the minimum wage rises, union contracts that are based on a multiple of the minimum wage would rise in response. Right?
I’d be unable to find a job even more.
Re: “A hike in the minimum wage would: Encourage more immigration if businesses cannot find ways to reduce headcount.”
Not sure I understand the rationale for that prediction.
If the minimum wage is $15/hour, no matter how many foreign workers you import, your cost is still $15/hour.
More legal immigration would just increase the number of unemployed workers, and also increase the number of people on some form of public welfare.
There are many variables that are germane.
I suspect that now, presently, the raise would ultimately be inflationary and that is the goal. To pay for Obamacare, to make it palatable, there needs to be an across the board minimum wage pushed increase.
In the recent past, when we were beyond total employment, the rise in the minimum wasn’t really felt because most were employed at rates at or beyond the increase. That is although the minimum was raised, few actually got a raise.
Today it is different because in theory there are lots of unemployed and there has not been wage pressure on employers. The Democrats began the hue and cry in December 2012 but it has not gained traction. The need to bail out Obamacare is getting serious so the pressure is intense. Several moonbat cities have done their part by increasing the wages locally. If there is no general national increase, they will be in trouble as businesses shed workers to exist.
The black market would grow, and we’d all be rich! Well, one of those two would happen.
#7. If businesses couldn’t compete while doing 5, and couldn’t recoup the costs in 6, they would close, AND ALL THEIR WORKERS WOULD HAVE A MINIMUM WAGE OF $0.00!!!!