Looks like the Democratic controlled House has passed the minimum wage hike. The minimum wage will go from $5.15 an hour to $7.25 an hour, a $2.10 raise.
It seems that the logic behind doing this is that the majority people who work minimum wage jobs still live in poverty. While this might be the case, by raising the minimum wage they just made it harder for those people to live.
Raising the minimum wage causes a domino effect in that because the employers are paying their workers more, they have to raise the price of their products in order to make up the difference. The other option for employers is to fire staff in order to bring labor costs down to be able to keep prices the same. If businesses raise the price of their products, then the minimum wage hike that the employees just got is instantly worth a lot less than intended.
Most people will say that it does not happen, but I was working a minimum wage job when the last hike happened. The place I was working for (Dominos Pizza) raised their prices by a dollar (sometimes two) per pizza. I also saw other places raise their prices as well.
I find it funny though that a lot of people that this is going to benefit did not want it to happen. Could it be that people who work minimum wage jobs are smarter than people give them credit for?