Can someone answer my question about the minimum-wage hike?

[MH1]

59. The reason a higher minimum wage doesn't kill jobs (at a macro level)

Is because jobs are created by people spending that additional cash.

The folks who are getting minimum wage are living (barely, if that) paycheck to paycheck. Every additional dime that comes in, gets spent. (As opposed to people who make more than they need to spend immediately.)

That creates "demand" in the economy. Demand for more goods and services. Which needs more people to produce those goods and services.

Now, that is at the macro level. Overall, the economy grows because demand grows. AND - more importantly - people live better lives.

The downside is that, like with any policy decision, there may be losers as well as winners. If a small business is not providing goods and services for those with lower incomes ... or the employees of the businesses that see an uptick in demand from the minimum wage workers ... yes it is possible some of them will struggle. If their higher costs are not offset by higher demand, they could be in trouble. But I would ask, what is it they are providing to society if they do not see an increase in demand in this situation? And for that small subset of businesses that might be adversely affected -- while those providing essential goods and services will grow - is it worth continuing to withhold a living wage from a large subset of the population? With the increase in public support services that poverty causes? Not to mention all the other negative effects of poverty, and the flat out human misery.

Bottom line: overall, an increase in the minimum wage will cause the economy to GROW, and MOST businesses will do better. Those who don't, need to adapt. There is a moral calculation here and the best outcome for the most, is with increasing the minimum wage.

I hope that helps.