The best context to talk about this in is really that of economics. And for that, we’re going to need to get the opinion of a famous and successful economist, don’t you think?
So here is Robert Reich:
Here’s another way to think about it: If the water level in the lake raises, then all the boats raise up too. It’s not like a fast employee will make $15 and so will a skilled laborer. Everyone will get a raise. Skilled laborers will need to make more, otherwise the people who were doing those jobs will leave them and go take easier jobs that pay the same.
The cost of living has increased every year. Rent, food, etc…
But the minimum wage has not kept pace with inflation NOT due to market forces, but instead due to government inaction.
And remember, if the minimum wage goes up, all wages must increase to keep pace. That means if you make $20 per hour BEFORE the minimum wage goes up, then you will likely make $30 an hour after.
There’s a lot of money being filtered to the top. The average CEO makes about $1,500 an hour.
However, other countries have proven that limited CEO pay makes for more stable businesses. In several countries, a CEO may not make more than 20 times that of their lowest paid employee. That means that if you make $10 per hour, the CEO can only make $200 per hour instead of $1,500.
One country that does this is Sweeden. And yet, they have hugely successful businesses like IKEA.
So this proves that stopping the redistribution of wealth to the 1% doesn’t hurt the economy.
In fact, raising wages means people have money to spend. That creates consumers. As the demands on business increase, they must expand and hire more people.
Think of Subway. Rich people mostly don’t eat there. It’s a restaurant aimed at the poor and the middle class. But right now, wages have been kept artificially low by Congress. So those poor and middle class people cannot afford to eat out as much.
This means Subway gets less customers, and needs less employees working less hours.
However, if wages went up across the board, then those poor and middle class folks could eat sandwiches every day AND add bacon and avocado!
Think of the increased profits if the target demographic Subway customer had more money to spend!
And every business is the same… we’ll all make more.