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Raising the Minimum Wage for Working Men and Women in California and the Rest of America

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Assuming that raising the minimum wage has no impact on employment because businesses just pass on the costs to consumers resulting in slightly higher prices for products and services which rely on minimum-wage labor, who benefits and who is hurt?

Let’s assume that there’s a 3% increase in the cost of fast food and a 1% increase in the cost of goods at Walmart and at supermarkets. Healthcare and education prices will remain the same because these industries don’t rely on minimum-wage workers. There may also be a 10% increase in the cost of lawn-care services and 5% increase in dry cleaning, but these are unnecessary luxury services for the rich.

Well clearly the working poor benefit, that is people who work at minimum wage jobs. They benefit a lot because their salary goes up by a much greater percentage than the costs of goods and services they buy.

• Category: National • Tags: Lion