If you raise Minimum wage you also need to adjust every other wage level. Minimum wage is THE BASE of what the rest of the wages are based on. If you keep raising minimum but don’t bother adjusting other wage levels, we are actually screwing ourselves over more, as well as slowly widening the gap between rich and poor.
For example, say you have someone who started out working minimum wage and then go promoted and is now making 9$ an hour, if minimum wage gets raised to 9$ what happens to that person who got promoted? The go from making roughly 2$ more than minimum back to making minimum wage, and once inflation catches up, they are going to be back to struggling to pay bills and buy food ( meaning more and more people stuck in the welfare system-which is hard enough to get out of as it is) and so we are back to needing to raise minimum wage again.
Slowly but surely you are going to be eliminating the entire middle class-who many making minimum wage depend on to spend money at their places of employment. With more people now earning minimum wage instead of above minimum, you have less people spending money at retail shops and fast food places ( because they can’t) and you end up having to cut peoples hours or lay people off, which creates a bigger unemployment problem.
Going with this trend, you are left with only two groups of people, the very rich and the poor. Which is what we DON’T want.
So no John Stewert is actually wrong here
YES YES THANK GOD SOMEONE SAID IT.
I actually have this rant saved so I can copy and paste it whenever BS like his comes across by dash XD
It’s stupid how long it took me to realize this.
Most people don’t really comprehend the effects of what a minimum wage does. It establishes a “Base” income upon which all costs, everything, go up.
I won’t do my long rant, but long story short we should nuke minimum wage and institute a negative income tax.
Switzerland is going to be voting on a basic income for citizens (very similar to negative income tax) and I think it may very well catch on if it works for them. With zero minimum wage a huge number of jobs become commercially viable and the personal risk of starting a business, particularly if you have a family, is substantially reduced. It frees those who wish to pursue long term payoff projects and various creative endeavors. With that you can nuke every welfare program (including all the redundant ones) as well. The republicans would jump on it like mad if it didn’t sound like socialism. This is hilarious because republican economist sweet heart Milton Friedman (he was an economic advisor to Reagan) was one of the first strong supporters of negative income tax in America.Source: drunkonstephen