According to the left-leaning Economic Policy Institute ("Minimum wage to increase by 15 cents," Dec. 27, 2014), an increase in the minimum wage will lead to an increase in consumer spending. But, how is that going to happen?
If I must pay more for goods and services, I will buy less. That is an economic law. It cannot be the case that I can pay more and purchase the same amount at every register.
Some businesses will win, while others will lose. And in those losing businesses, jobs will be lost.
In the end, the consumer will have less goods at the end of the day and more folks will be unemployed.
It is true that some workers will benefit by the increase, but most of their nominal benefit will be wiped out by rising prices.
Is this really "a terrific thing for workers and the economy"?