Nonsequitur: More Minimum Wage Hike Stories
May 4, 2015
What happens when you raise minimum wage? Well, the economy doesn’t collapse. But a so-called “livable wage” doesn’t result in the poor being able to buy more stuff. Bigger companies simply raise prices, use cheaper parts for their products (that means more jobs moving overseas) or reduce services. Small companies can do a little of this, but mostly they just reduce worker overhead. That means reducing hours or reducing workers.