(April 13, 2014 at 5:48 pm)Chad32 Wrote: I've been hearing about the minimum wage being so low that people with a full time job still need assistance or multiple jobs to make a living wage, but I've had people say we can't raise the minimum wage because stores and such will just raise prices.
I tried to tell them that everyone shouldn't have to raise prices because workers who get more money will be able to buy things in greater quantity. That wasn't very convincing, so i was wondering if anyone who knew more about economics could tell me how this works. How do we get the government to pay people more without employers jacking up the prices?
Prices are set by the market not labor costs. If labor costs determined prices GM would never have gone broke. Here is a video which explains the negatives of minimum wage.
