This election year, some politicians are again misleading the American public in order to get votes. They are saying, “It’s time to raise the minimum wage so that people can make ends meet” when they know full well that raising the minimum wage does nothing to help those making minimum wage. The only group it helps is the politicians, via votes and higher income for the government, which they spend.
Yes, those making minimum wage will see their paychecks go up. However, they also will see the price of the goods that they buy go up. This nullifies any benefit to a higher paycheck. In order to stay in business, companies must make one of two decisions when the minimum wage is raised: lower costs (terminate employees) or raise the prices on what they sell. However, you cannot make goods to sell without employees, but you also cannot raise the price of the goods you make so high that the public cannot afford them. So you do both, lower costs and raise prices. Either way, someone loses their job, we all pay higher prices and the government gets more income. So who are they really trying to help?