Raise the Minimum Wage!

I got into another real life debate about minimum wage again that left me exasperated.  What people don't seem to understand is that the entire economy benefits if people have more money in their pockets, it's just that no business owner wants to be the only person paying more than everyone else.

For example, let's say you own a convenience store with just a few other employees you pay minimum wage.  If you have one guy on the shift at a time you don't have any incentive to double your labor cost to $15 an hour because none of your competitors are paying that.  However, if everyone starts paying that all your customers have more money in their pocket, so your sales go up which will more than make up for the additional labor cost.  It's pretty simple.

Will their be inflation?  Yes, more money in people's pockets means they can pay more.  But the inflation won't be universal, it will mostly impact companies that employ primarily low wage employees, but has very little effect on things like rent and electricity bills.   Even the inflation that occurs will be offset by the additional money circulating in the economy.

That 99 cent double cheeseburger may get bumped up to $1.10 or ever $1.25, but the people at the low end of the spectrum will still be way better off and that will translate to everyone participating in the economy.  Poor people don't save money.  All of those additional wages will translate into what is effectively bonus economic stimulus that will pay dividends all the way up the chain as the money is immediately reinvested locally.

What's the real reason that republicans oppose minimum wage hikes?  I have no idea.  Layoffs are often cited as a reason to avoid minimum wage hikes, but the reality is that companies that employ primarily minimum wage or low wage employees (companies like McDonald's and Walmart) are the same companies that most directly benefit from the increased liquidity enjoyed by their customers.

The real reason seems to be that it is bad because people think it is bad regardless of the actual reality.  Cutting costs and squeezing labor down to the bare minimum has become so ingrained in american business culture that any suggestion that we should pay more for something we have been paying less for is met with incredulity and outrage.  It's all about short term gain at any cost, so regardless of the truth of the assertion that a minimum wage increase would benefit the economy, those who represent the interests of business refuse to even discuss it as an option - even if it might assist with solving some of the other problems they hate so much.