I need information about raising the minimum wage

[TexasBushwhacker]

7. It's not that simple

The cost of labor is only one part of the cost of the product being sold. There's rent, utilities, materials, possibly advertising, legal expenses, franchise fees (fast food) etc.

Certainly companies have to cover their costs, but to maximize profits, prices are set at the highest price that will produce the most sales - good old supply and demand. Prices are not set so high that they invite competition from lower priced competitors.

For example, if McDonald's paid their workers $15 an hour, they would theoretically have to raise their prices 17%. However, a higher minimum wage may also mean that more people can afford to buy their food and that they can buy higher priced items. Increased business could cover the cost of the wage increase. They might even be able to increase their prices by more than 17%.

McDonald's in Australia pays a minimum of $17.03 per hour, plus generous benefits. A Big Mac costs $4.95 vs. an average of $4.20 in the US.

Increased wages also means less worker turnover. Training new workers is expensive. Walmart's hourly workers make $12.85 on average and even full time workers work less than 40 hours a week. Their turnover rate is 44%. Costco pays an average $20 an hour. It's turnover rate is 6%.