This is a commonly held belief in the conservative community, certainly not the first time I've read this. But it assumes that if a company is forced to incur higher costs of any kind they won't look for offsets or efficiencies and will immediately raise prices. ... Higher wages do produce higher priced goods, but I think it's a bit more complicated than every extra dollar of compensation is reflected in the price of a good.
I never said the increase was dollar for dollar. But some sort of change must be made to compensate for the higher cost of labor. And because these are businesses, and not charities, asking them to simply reduce profit margins (often in cutthroat industries with already razor-thin margins like food service) isn't as easy as some might suggest.
At the very least I don't hear that same argument when executive pay is discussed....
If a company wants to stupidly give away millions of dollars to CEOs, that's their choice. And it's our choice whether to support those companies.
But that has nothing to do with federally mandated wages.
The biggest problem with the argument above is that if only 5% of the workforce makes minimum wage, then a raise in the minimum wage does not affect 95% of the workforce, therefore very few costs would be passed a long in the first place. Unless of course a good deal of the workforce is making just barely more than the minimum wage, which undermines the 5% argument in the first place. There ain't a lot of difference between 7.25 and 7.50 an hour in real dollars, just $20 gross for an 80 week check.
A raise in the minimum wage affects EVERYBODY, as I already pointed out. The industries paying minimum wage will likely see increases in the price of what they sell, which affects all consumers.
Also, if the minimum wage rises, labor costs for industries that would like to be able to BEAT minimum wage to attract better workers will also have to raise wages. I've also heard that union pay scales are often based on 1xx% (whatever percentage above) minimum wage too. So the price of virtually everything will increase if minimum wages rise. It's not much good to make more money if you are forced to give it right back if you want to buy anything.
Anyway, the point about the 5% was that even though we have a minimum wage, the vast majority of companies pay more than that already, in order to compete for competent workers. The people making minimum wage are mostly doing unskilled labor or working part time by choice. I would encourage those people to expand their abilities or start working full-time jobs if they want to make more money.
As for the teenagers argument, it doesn't matter if you are a teen or 35, work is work. I don't support the notion of paying teens less because they supposedly need the money less.
But that wasn't the discussion. The discussion was whether a full-time minimum-wage job could support a household. So, yes, it does matter, for the sake of this discussion, whether the earner is running a household or is simply trying to earn some money for school or personal use.