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BAR[_2_]

In article , says...

On Wed, 05 Mar 2014 10:22:40 -0500, "Mr. Luddite"
wrote:

Can any of our resident economic experts explain how raising the minimum
wage helps anyone?

The cost of goods sold reflect the cost of selling those goods. If the
minimum wage is raised, the cost of selling increases causing the cost
of goods to increase, resulting in going back to square one in terms of
what is affordable to everyone.

The only way it makes sense to me is if the minimum wage is raised but
the cost of goods stays the same. That isn't going to happen.

The Time article about the inequality in San Francisco said the mayor
wanted to raise the minimum wage to $15. Yeah sure, that makes all the
difference when apartments go for $3500 a month.

I was out in the San Francisco Bay area about 12 years ago and a McDonalds, of all places,
was hiring people at $12 per hour. This was in 2002. Supply and demand for labor works.

If there are really a significant number of people trying to raise a
family on minimum wage, that is not a minimum wage problem, that is a
jobs problem.
More correctly, it is an employee problem. These people need to learn
a skill that supports a reasonable wage. In the end, they still need
to create enough value for the employer to justify what they make.
Otherwise the employer simply will not hire them.
You only have to look at the union dominated industries where people
were making more than they could return to the employer because of
inflated contract terms. The employers replaced workers with robots or
simply moved the plant to a place with cheaper labor.

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