Democrats appeal to the lower income class of Americans by promising them higher minimum wages. The promise of making more money is always enticing and has been a come on for con artists for centuries. Who wouldn’t want to make more money? That’s what makes things like the Powerball Lottery so hugely successful – the lure of sudden wealth.
Conservatives on the other hand have argued that raising the minimum wage is not the solution but will only add to the problem. They often argue that raising minimum wage leads to higher prices for everything, making the cost of living increase resulting in people spending less.
If liberals got their way and increased minimum wage from $7.25 an hour to $15 an hour, what do you think that’s going to do to the price of a hamburger, French fries and soft drink at your local fast food restaurant? What do you think it will do the overall price of groceries that grace your dinner table every day? What do you think will happen when you have to buy clothes for you or your kids?
Many businesses operate on a very tight or small profit margin of several percentage points. In many cases, the greatest expense is payroll. So, what happens if they are forced to double their payroll?