It has everything to do with it.
Alright well whatever No I did not grow up with money, i've grown up middle upper-middle class.
Raising the minimum wage will increase demand
Higher minimum wage means some job loss meaning higher prices meaning a decrease in demand not an increase.
But I hope that you do realize that this will not really affect the poverty rate at all either. I just did a research fact sheet on the cut down of unemployment benefits. So maybe instead of raising the minimum wage by 40% in most states they should put some money back into other programs that will help those who are unemployed.
Hint, Henry Ford doubled the pay of his workers in 1915 so that they could afford to buy the cars he was building, thereby increasing demand.
HEHE, really really LOL. Hint, he did this to only make more money for himself LOL. But the main reason that he did this was in fact to stop employee turnover, so he really did this to save himself money. labor turnover at the Ford Motor Company had been so high that, in 1912, 52,000 men had to be hired to retain 14,000 workers. Productivity soared and employee turnover plunged, and the cost per vehicle plummeted. "The resulting savings were so great that despite sharply rising costs for all materials in the next few years, Ford could produce and sell its Model T at a lower price and yet make a larger profit per car,"
Now also think about this, I'll admit what Ford did was a very very smart business move. But when he increase the wage he was the only one to do so. Thus making his company the one everyone wanted to work for as you got top dollar their. (His main reason was the stoppage of turnover) But now think about if the minimum wage in increased by all companies. Then that wont lower turnover because you can still make the same amount at any other company. Thus you cant bring in what Ford did back then and compare it to nowadays. 20% of a persons salary is how much it costs a company on average to have that employee quit. So now when you think back to ford
At the time, workers could count on about $2.25 per day, for which they worked nine-hour shifts. It was pretty good money in those days, but the toll was too much for many to bear. Ford's turnover rate was very high. In 1913, Ford hired more than 52,000 men to keep a workforce of only 14,000. New workers required a costly break-in period, making matters worse for the company. Also, some men simply walked away from the line to quit and look for a job elsewhere. Then the line stopped and production of cars halted. The increased cost and delayed production kept Ford from selling his cars at the low price he wanted. Drastic measures were necessary if he was to keep up this production.
So if you wanna look at it from this perspective well their are a few options, Ford did this because overall it lowered costs for him, he had just invented the assembly line witch cut down the cost tremendously and now stopped turnover at his company
1. Change from employee's to machines
2. Increase current productivity.... Which the increase in wage may do this itself but doubtfully
3. We all know that production is more expensive in the U.S than elsewhere so instead move production across the water or into mexico
It doesn't help the economy when Wal Mart pays so low that the workers qualify for food stamps. That's a huge subsidy for business and contradicts the "Free Market".
Yes well now this I actually agree with it is sad but then again at least these people have a job and aren't living under the poverty line. But again its how things work turnover at walmart is high, but the cost is lower. So its no sweat to them and their is always another new eager person ready to apply and take over.