Labor costs represent a vanishingly small portion of overall cost. So even if you increase minimum wage say, 15%, it will only result in a like 2-3% increase in the cost of the good to produce (and that is in high labor industry like food service).
And businesses will not fire people, that is a fucking myth, they will always keep as many people as they need to meet demand.
Raising minimum wage would also have a positive pressure on demand, so it is even likely that businesses will need to hire more people.
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Date: 18/3/12 01:40 (UTC)And businesses will not fire people, that is a fucking myth, they will always keep as many people as they need to meet demand.
Raising minimum wage would also have a positive pressure on demand, so it is even likely that businesses will need to hire more people.