Let's say Jeff is working at McDonalds for minimum wage at 8$ an hour. Jeff votes for the raising of minimum wage to 12$ an hour. What will be the effects of this change?
The first difference would be the obvious fact that Jeff's employer will now have to pay Jeff and all of his other employees 12$ What if the likely scenario occurs in which Jeff's employer can't afford to pay his workers that much? He will be forced to do one of two things.
The first option Jeff's employer would have is to get rid of some of his workers. (Assuming that he can still afford to pay SOME of his employees and this change of minimum wage doesn't shut down his store completely) He can either do this by simply laying people off, or laying them off and replacing them with machines. Guess what Jeff? You just lost your job because you don't have a basic understanding of economics.
The second option is for Jeff's employer, and all other companies that pay somebody minimum wage to raise the prices of all the items. Guess what Jeff? Your raise in pay doesn't even matter because all of the prices just went up. You accomplished nothing good. Although there is something that was accomplished. You accomplished the devaluing of all the people who worked hard to get a job that pays above minimum wage. Those people don't get payed more but all the prices just went up. You just seriously damaged the economy in many ways.
NICE JOB JEFF!
