You mean minimum wage hikes come out of *our* pockets?

[Schneed10]

I wouldn't exactly say this thread is full of economic scholars, but I'll throw my two cents in.

First some facts. When the federal minimum wage was instituted in 1938, it was set at 25 cents per hour, which if adjusted to inflation would be worth $4.19 today. It was adjusted many times since, in 1968 it was $1.60, which would be worth $10.86 today. In 1981 it was set at $3.35, which would be worth $8.71 today.

So it is not at all unreasonable to say that minimum wage should be set at $10. Now, $15? That's completely unreasonable and out of line with history, at no time has the inflation-adjusted minimum wage been worth more than it was in 1968 when it was worth $10.86 in today's dollars.

Now, those saying corporations will innovate to find labor savings, that's absolutely true. And it's only natural that as labor costs increase, the incentive to find those savings increases. More people will definitely find themselves out of work, but to a large extent that will happen anyway. The ROI on a capital investment like kiosk order entry may be outstanding when labor is $10 per hour, but it's still good when it's $7 per hour. So innovation and automation will continue, regardless.

Philosophically, I agree with CRedskins in his assertion that the minimum wage should not be a wage anyone aspires to. Everyone should aspire to much more than that. But the problem is the skills of our workforce are not to the level where many can reasonably aspire to more than the minimum wage. Right now there are 5.4 million job openings in the United States. Why don't they get filled? Because most require significant skill, particularly STEM skills. Unfortunately, too many of our workers are minimally productive, with minimal skills.

So what's the logical solution there? Every lefty in the US will say oh we must invest in STEM curriculum for our schools! Problem is no school programs will take if the parents and students in the most challenging communities don't give a shit. And far too many do not give even one shit about improving their skills. Harsh? Yes, but reality.

So you come back to what you do about minimum wage. It's not going to help people aspire to more. It's not going to fix their shortage in skill and work ethic. It's simply a matter of asking corporations to pay them enough to cover the most basic living expenses. If people can work 40 hours a week and still qualify for food stamps, like is the case all over the US currently, then the minimum wage is too low.

Bring it to $10 and index it to inflation. Minimum skill people will continue to lose jobs no matter what as the world continues to automate.