food 4 thought wrote:
Minimum wage history
1997 - $5.15 = $8.34 in 2020 dollars
2007 - $5.85 = $7.45
2008 - $6.55 = $8.01
2009 - $7.25 = $8.86
It should be noted that that is the federal minimum wage. 29 states have a minimum wage higher than that. CO is just north of $12/hr (different for tipped workers).
To answer the OP, one I think people see it as "free money" and I deserve more! Everyone you ever talk to will likely say "I am not paid enough". Okay you get some who recognize they are paid to do something really cool like cover sports, but even then they ask for more money or jump to a job that pays more when given the chance.
Second, for some if entry level is making $15/hr then I am going to get a raise too because I am only making $30/hr with a college degree (or whatever the wages break down to be).
I have seen some reports that the effect on prices is not great, but I think what is often missed are some of the following:
1. Employers know their customers are price sensitive in many areas. If a restaurant raises its prices maybe customers go elsewhere. Now if everyone does it, then maybe the customer does not go out as often. Maybe the customer does not order dessert or another beer so revenue goes down.
2, Employers may cut back on hours. I supervised hourly staff and had a budget for hours. When it came to assigning hours I looked to see what each person made. I had a spreadsheet that I could look at the cost of scheduling each person how many ever hours. I would often schedule the lower paid person for hours to make budget. So the hourly rate might go up, but the number of hours go down so that person is no better off.
3. Loss of benefits: I might hire 2 people part time because I can save on benefits that way. I worked for an organization big enough that we had to provide health insurance. We hired a lot of part-timers. Another aspect to a loss of benefits are federal aid programs, if you make $1 over the limit you lose all benefits. A friend was about to get a raise at work (her work has health insurance but it is expensive) but she and her kids right now qualify for medicare (medicaid? whichever it is). If she had gotten the raise it would have have actually cost her.
4. Automation: if wages go up, employers might look for ways to automate things to reduce workforce or hours. I suspect this will get a boost with COVID. More people are used to ordering food through an app and picking it up. McD's already had ordering kiosks in many places. Why pay someone to take you order when you can input it yourself? We are already doing many tasks a person was doing just a few years ago. When I fly, I print out my own boarding pass (okay I use the app); I print out the luggage tag and put it on and take it to someone to put it on the conveyor belt.
5. Teens and low skilled workers hurt most. If I have to pay someone more then I am going to look for someone with more experience. Why hire a 17 year old if a 22 year old will do the job bagging groceries for the same amount?
Lastly on this long rant: very few people earn the minimum wage for more than a few months. The ones who do often get a bump within a few months. Also, few are heads of households. When I see someone who has worked as a fry chef or cashier at Burger King for 15 years and is making the state minimum wage I wonder "why are they still in that job"? I knew people in college working fast food who are at least assistant managers after a pretty short period of time.