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Message: <blockquote data-quote="apsuman" data-source="post: 242962" data-attributes="member: 1769">Well, the market takes a hit when the minimum wage goes up because:- labor unions (that get paid much more than minimum wage) have in their contracts that their wages are tied to the minimum wage, when it goes up so do their wages.- business have to re-evaluate every labor process to see if automation is now cheaper than hiring a person.- minimum wage workers are unskilled and make the least complex items.  These simple items have a large part of their cost in labor which causes those costs to go up.  So everyone that does not make minimum wage takes the hit.- the minimum wage is artificial and prevents some jobs from being created.In short an increase in the minimum wage makes labor more expensive across the spectrum.  It hampers job creation, and lowers the buying capacity of everyone else. It's not like the effects are invisible.  The next time there is a minimum wage hike watch the menus at all the fast food (and non fast food) restaurants change.  Everything will cost more.  Too bad for me as my two kids love to go to McDonald's and I will not be able to take them.If a minimum wage worked why not just say that the minimum wage is $20 an hour?  A Big Mac would cost $12 and there would be no employees at an fully automated McDonald's.  Too bad I couldn't afford it.g!</blockquote>