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Home > Politics & Government > Politics > Do you want a prediction about what will happen the next time minimum wage is increased?

Do you want a prediction about what will happen the next time minimum wage is increased?

What you'll see is massive unemployment followed by a recession and then inflation when the economy recovers. That's been the pattern for the last 6 times we've raised minimum wage (I haven't gone back farther than that). Remember when we raised minimum wage in 2007 (and again in 09) ? 

The democrats will try to do it when a republican is president and then blame that president. If that isn't possible they'll still try to blame republicans in some way. 

If the increase is large (like $15) you'll see a lot of companies go out of business. Off the top of my head, I don't see Arby's and Wendy's making it. That will trigger a chain reaction in the economy and cause a very bad recession/depression. Possibly worse than 08. 

Bookmark this question and when it happens come back and tell me I'm wrong. I dare you. 

  • Best Answer

    The consumer is 2/3 of the economy. Consumers are generally employees. If employees can't get a fair wage they don't buy. They don't buy: production of goods declines. Production declines, consumers don't buy GDP falls: recession.

    Recession will definitely happen. It's a never ending cycle. Minimum wage being blamed is only an infinitesimal part and a coincidence, at best.

    JOHN B
    Lv 6 8 months ago 0 0
  • Other Answer
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