The CBO has released a report on the consequences of a new minimum wage hike. Of course, the Democrats and Republicans are each using the report to trumpet those parts which serve their own interests.
Instead of reiterating what is in the article and is the standard mantra from each party, let's just do a quick common sense check. First, if the minimum rate is increased, who honestly believes that somehow the companies forced to increase wages are just going to accept the decrease in profitability. Granted that the companies are going to shave their costs, the options will be to either drop personnel or raise their prices. Whatever path is accepted, you either are left with less people working or overall costs being driven up across the economy in many of the same companies that low income workers buy things from. So while raising the minimum wage may poll well and will make some feel good, let's not fool ourselves, in no way is this really a way to lift anyone out of poverty.
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