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Originally Posted by CaptainBubba
ECONOMICS 101 ANYBODY? HMM? ANYBODY UP FOR SOME ECONOMICS 101???
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OK. Let's look at the short-run and long-run effects of a minimum-wage increase:
Short-run: Corporations have to pay more money to their low-level employees, which would result in some layoffs and downsizing plus cutting benefits to keep out of the red. This is basically what everyone is worried about :/
Long-run: People who have jobs have more money in their pockets, which means they're able to buy more stuff. That leads to increased profits for corporations, which means they would be able to expand and hire/rehire people back into the corporation, and increase benefits.
Usually minimum wage has to be a good balance between these two forces, or else you have companies with like two rich people working for it or you have companies where you have thousands of poor people working in crappy conditions because the company can't afford to take care of their workers.
Also there may have to be programs for displaced workers during this period to smooth the transition.