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> “… could it be if people have more money for discretionary spending there could be more businesses to service them?” This would be true if people did have mo

> “… could it be if people have more money for discretionary spending there could be more businesses to service them?” This would be true if people did have more money for discretionary spending, but increasing the minimum wage has shown to decrease their total compensation. I don’t know how reliable the following article is but the summary expands on a few reasons on how this happens. https://hbr.org/2021/06/research-when-a-higher-minimum-wage-leads-to-lower-compensation https://hbr.org/2021/06/research-when-a-higher-minimum-wage-... > “… (employees) are just going to take whatever's available” This is why it’s important to increase the opportunities available for them. More wealth creation means more wealth. I will get back to you on the citation for this.

h0l0cube 5y ago
From the article: > We found that for every $1 increase in minimum wage, the percentage of workers working more than 20 hours per week (making them eligible for retirement benefits) decreased by 23.0%, while the percentage of workers with more than 30 hours per week (making them eligible for health care benefits) decreased by 14.9%. To be fair, this isn't an argument against minimum wage, but an argument for reform in health care and retirement funding. Keep in mind, this technique was always available to them, this almost seems a spiteful reaction, or at least they would have done it sooner if they'd thought to. > More wealth creation means more wealth. Does it mean more income to the lowest earners in a high-GDP country? Or does it just mean GDP has increased?