President Obama’s plan would raise the minimum wage to $9 an hour so an honest day’s work pays more for 15 million Americans. #LivingWage
— Barack Obama (@BarackObama) February 14, 2013
Increases in the cost of labor cause commensurate increases in the cost of goods and services eliminating the value of the increase in pay.
Increases in the cost of labor cause businesses to reduce the amount of labor they use. This increases unemployment.
No employee is worth paying more than his labor can profitably produce. Unskilled young people often cannot produce enough for increases in minimum wage. Youth unemployment increases.
Artificial increases in the cost of labor cause increases in the cost of goods and services. Retired people living on savings use savings faster or are forced to cut back reducing standards of living.
You cannot create wealth by increasing minimum wage. An increase in minimum wage during a period of weak employment numbers will absolutely, positively increase poverty in America.
Obama doesn’t care, however. The idea of an increase in wages appeals to the economic illiterates in his base and that is all that matters.