Do you want a prediction about what will happen the next time minimum wage is increased?
What you'll see is massive unemployment followed by a recession and then inflation when the economy recovers. That's been the pattern for the last 6 times we've raised minimum wage (I haven't gone back farther than that). Remember when we raised minimum wage in 2007 (and again in 09) ?
The democrats will try to do it when a republican is president and then blame that president. If that isn't possible they'll still try to blame republicans in some way.
If the increase is large (like $15) you'll see a lot of companies go out of business. Off the top of my head, I don't see Arby's and Wendy's making it. That will trigger a chain reaction in the economy and cause a very bad recession/depression. Possibly worse than 08.
Bookmark this question and when it happens come back and tell me I'm wrong. I dare you.
- JOHN BLv 63 weeks ago
The consumer is 2/3 of the economy. Consumers are generally employees. If employees can't get a fair wage they don't buy. They don't buy: production of goods declines. Production declines, consumers don't buy GDP falls: recession.
Recession will definitely happen. It's a never ending cycle. Minimum wage being blamed is only an infinitesimal part and a coincidence, at best.
- 3 weeks ago
Here's my prediction - We will have an economic crash, but because of his stealing the Big Tax Break money, he's destruction of all programs that help the average American family. Economists say HE is the cause of everything breaking down.
- JohnLv 44 weeks ago
So other than driving business out what's the purpose of minimum wages?
In other words why not fix prices and stagnate business growth instead?
To answer your question businesses that base their wages on minimum wage s usually have either or situations, trouble or not.
Other businesses do not.
Usually if there is a government/business argument on wages it has to do with sweat shops and managers pirating profits and not paying taxes.
Remember centralised business wealth pays little in tax where distribution of business wealth pays large amounts in taxes and the government has its own expenses.
So while trump may not be 'illegal' in his wealth his wealth centralisation has still blocked and shows his "anti-givernment" "pro-militia" stance.
- BOOMLv 54 weeks ago
Oh.. well.. since ya dare me..
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- BeardogLv 74 weeks ago
Bookmarked, because you’re wrong. Payroll is not even close to Arby’s biggest expense, it’s the marketing, followed by the R&D into cloned soybeans that taste vaguely of beef stock, then executive compensation, litigation expenses, insurance premiums, facilities maintanence, equipment, and then waaaaaay down the list is the hourly rate for the drones followed lastly by ingredient costs.
Any business operating on as slim of a margin as you’re imagining is about a sneeze away from bankruptcy anyway.
- SallyLv 74 weeks ago
If only the facts agreed with you. Oddly, there are these guys named economists who study these things and have advanced degrees and know what happens over time in an economy with variable factors.
So I think I'll go with their expertise instead of yours.
- .Lv 54 weeks ago
Raising minimum wage means (1) OFFSHORING and (2) AUTOMATION, wherever possible.
>> As automation becomes more and more human-like, fewer kinds of work are worth people.
- ANDRE LLv 74 weeks ago
-That which is asserted without evidence can be dismissed without evidence.- Christopher Hitchens
Your IQ starts with a Minus sign.
- JeffreyLv 74 weeks ago
People don't seem to understand that raising the minimum wage has a ripple effect and just about all wages and therefore costs to employers go up. Since they can't always make it up by raising prices there are layoffs, cutting of hours and some business closures.
- yr_nxt_bfLv 64 weeks ago
Raising minimum wage gives robotics and automation industries a boost.