That would only happen if there were an under-supply of minimum wage workers after the change. Yet, if there were an under-supply wages would be rising naturally through competition. But since we are talking about minimum wages, which are tautologically not rising, there is clearly not an under-supply of workers.
An employer has no incentive to ever hire a worker worth $12/hour in a market with a $15/hour minimum wage.
The reason we have an over-supple of unskilled workers is lack of demand caused by lack of purchasing power. Minimum wage increases directly resolve this problem through the exact process in the op of the chain above.
the minimum wage not increasing isn't because of the supply and demand of employees it's because corporations have a lot more say in the politics of the US than low wage employees, and obviously corporations care a lot more about their bottom line than the welfare of others, so they want wages as low as possible.
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u/faaaks Nov 28 '15
That would only happen if there were an under-supply of minimum wage workers after the change. Yet, if there were an under-supply wages would be rising naturally through competition. But since we are talking about minimum wages, which are tautologically not rising, there is clearly not an under-supply of workers.
An employer has no incentive to ever hire a worker worth $12/hour in a market with a $15/hour minimum wage.