06-08-2016, 03:00 PM
(06-08-2016, 02:46 PM)Brownshoe Wrote: It will increase the production cost of the labor since a $2.50 raise would be over 33% increase in cost.
Wrong.
Labor is only a small percentage of total costs, and minimum wages positions are only a small percentage of labor costs. If a business has 40% of costs devoted to labor and 20% of labor costs go to minimum wage earners then raising the minimum wage by 33% would only be an increase of 3.3% of total costs.
As I already said increasing the wages of 3 million workers by $2.50 an hour would only increase total income in the United States by less than 2 tenths of one percent. That is not enough to cause a major increase in inflation.
