Question about raising the minimum wage

[johnnie]

After reading KC2's thread I got to thinking about something that I have thought about before concerning the minimum wage. First, I'm not a economist don't freak out on me.

I am just wondering if an "across the board" raise of minimum wage wouldn't play havoc on the economy? raising minimum wages raises product cost, no? And what about people who make a little more than that? For example, if a person is making $9 an hour and minimum wage is increased to say $7 per hour, where does that put the person who makes the $9?

Many minimum wage workers are students (high school), and I am guessing their wages would rise also. What I am imagining is that there is a single mother making $9 and hour at some store somewhere and a few high school kids working there are making the $5.15 an hour. Min. wage goes up to $7 an hour and the single mother's scale stays at $9. To cover costs of raising wages, companies raise the cost of their products and now many things the single mother in this scenario used to be able to barely afford, becomes harder to afford.

I don't know if I am way off base here, and like I said, I am no economist. I am all for higher wages and raising the minimum wage, but I think about these things once in a while and don't really have an answer. Maybe some other views might help me think about it different ways.

[johnnie]

1. Maybe I should put this in GD

:shrug:

[mainegreen]

2. In a sensible economy it will raise the lower wages and lower the upper..

wages and do nothing to the few people in the financial mean.

[Floogeldy]

3. Raise it.

Raise it so high that if corporations increased prices to compensate for their loss of humongous profits people wouldn't buy. On principle.

[WCGreen]

4. People at the lower end of the pay scale tend to spend all

their money earned...

What would happen is that money would perculate through the economy and pay for the increase in wages through an increase in sales...

[johnnie]

5. What type of jobs are min wage?

Walmart? Restaurants? I'm just curious who makes min wage. I think my sisters kids do, but they are still in high school.

[WCGreen]

6. Mostly entry level at small stores, fast food joints....

That kinda stuff...

Question to ponder, when the stock market goes up and people are given increased dividends, does that cause inflation....

[mark414]

7. a group of economists (including some nobel winners) says no...

http://www.kansascity.com/mld/kansascity/business/local/15735362.htm?source=rss&channel=kansascity_local

[johnnie]

8. Ah, good article

Thanks. This is interesting to think about:

"Virtually all minimum-wage jobs are service jobs that can’t be done overseas, he said."