Guess Who Wins with a $15 per hour pay raise?

With all the hoopla over raising the Minimum Wage to $15 per hour, many are Singing The Praise for this likely Great Event.

Let's take a look at the Bottom Line and who wins:

A long standing means of figuring out Who Wins is to "follow the money."

The employer increases the wage for an employee from $7.50 to $10.00 per hour.

• The Employer, in order to pay this increased wage, will increase the price of their goods or services. Anyone purchasing these goods or services will automatically pay a higher price. Pay raise diminished!
•  Other businesses, seeing more money apparently available from the "lucky" employee, will likewise raise the cost of their goods or services. After all, businesses are in business to maximize return. Pay raise diminished!
• Rents will also be raised ... because the employee now has more money to pay rent. Other real estate will also "magically" become more expensive. Pay raise diminished!
•  What do you think will happen to the gas stations in the areas where the new pay scale is implemented? (Go up, you think?) Pay raise diminished!

FANFARE: The real winner will be Local, State and Federal Governments because of higher incomes, tax revenue will increase.

(Funny how governments were the biggest proponent of a higher minimum wage because it was "fair and they need the added income for living expense." Unfortunately, the now richer employee now will have less disposable income.)