I ran across this little gem in the IndyStar Let it Out section and had to comment on it but don’t do Facebook.
For those who argue tax breaks for the wealthy help the economy, while a wage of $15 per hour will hurt the economy: watch what happens when the general consumer has a little extra money due to low gas prices.
Seems the gasoline price argument actually reinforces the argument that raising minimum wage will hurt not help. Raising minimum wage should be equated with what happened to the price of everything else when fuel skyrocketed. Fuel and labor are both ingredients to creating products and offering services and minimum wage hike proponents don’t seem to get that. Raise the cost of production, fuel or labor, you raise the cost of that product – be it durable goods or services.
What’s more, the folks that get the raise will have the same purchasing power as before because of rising prices due to increased labor cost. Then, everyone above minimum wage will LOSE purchasing power. So minimum wage earner break even at best and yet again the middle class looses ground because prices went up but their pay did not.