I believe minimum wage could be increased slightly especially in states where there hasn't been an increase in awhile. But raising it to something like 15 an hour is going to crush all small businesses and put a huge dent in profits of large businesses, in turn they will raie prices, inflation will run rampant and the increase in wages will all but be lost
Prices of everything has been going up for years but the minimum wage has not. There seems to be no balance between wages and cost of living anymore. Minimum wage does need to be raised but only if everyday costs do not go up because the wages will rise. It will be pointless if that happens.
Too many people just run with their favorite assumptions when discussing things like this. Opponents will assume that minimum wage will cause prices and unemployment to rise. Supporters will assume it won't. The reality is a lot more complicated. Maybe business owners would like to get the money back they lose from an increased minimum wage, but other financial realities will prevent them from raising the prices.
It's not purely based on rationality. Not everything can be calculated. People will skew their calculations towards making assumptions that are favorable to their worldview. One businessman automatically assumes that it's 'rational' to raise prices on all goods to make up for the minimum wage increase because that's what he hears whenever he discusses politics and so feels indignant and also worries he'll disappoint shareholders if he doesn't raise the prices. He assumes other businessmen are about to do the same. But it turns out the other businessmen don't think shareholders are going to really notice the effects of the increase and so keep their prices low. Then that businessman who probably more out of ideology than rationality raised his prices would be behaving irrationally in an economic sense. Some irrationality is inevitable because not everything can be predicted.
Personally I support an increase in minimum wage. If it hurts the economy it will be as much if not more because businessmen and shareholders feeling butthurt at the indignity of having to pay a living wage take it out on consumers. Not raising the minimum wage just because of how businessmen might behave is like giving in when children have temper tantrums and if you ask me the rich in this country are spoiled as it is.
And more likely it will benefit the economy. Here's why. There are plenty of very wealthy people who can easily afford to not raise prices in the face of raising minimum wage who aren't of the line of thinking that because of all-mighty economics they will have no choice and need to raise their prices. They will out-compete the whiners who raise their prices in protest, and in the end we'll have less gap between the rich and poor.
Raising minimum wage won't hurt the economy right now because too much money is being held by the 1%. If corporations are forced to pay more, because they certainly won't unless they're forced (ie. Wal-Mart) then more people will have money to spend. At this point a raise in the minimum wage would absolutely boost the economy.
With our middle class dwindling, a higher minimum wage would create more monetary circulation which is the driver of economic growth.
Putting more dollars in the hands of those who actually spend them (rather than investing the capital where it does no good), creates monetary flow, which is essential for growth and stability.
Raising minimum wage will allow more low income people to feel at ease in relation to paying basic bills for survival which in turn makes them more likely to spend more money on non-necessities. The economy improves when there are more people spending money so by raising minimum wage and giving people a greater sense of financial security we can improve the economyas well.