A hot topic of debate these days involves whether or not the federal minimum wage should be increased. Conservative economists argue that increasing the minimum wage would lead to an increase in prices—a cost that would be shifted entirely onto the backs of consumers. Upon hearing that, it’s easy to shy away from supporting an increase in wages; however, these conservative economists are not telling the whole story. Their theory is rooted in the belief that businesses already pay their employees the highest wages that they possibly can without affecting other aspects of the business. Here’s the problem with that notion: corporations have been posting record profits in recent years (even during the Great Recession), but wages have either decreased or stagnated. The truth is, paying employees a low wage is good for corporate profits, and we all know that profit is everything to CEO’s and share-holders.
MOAR.
