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There are many better explainers out there but for the few followers who may benefit from it: federal minimum wage hikes are conceived of as helping the proverbial young single mom w/o a degree who works two full time jobs to support her kids. I'm sympathetic, that was my mom.
But that's not most or even many of the people who make minimum wage. The avg minimum wage worker is a teenager working part time. No real racial disparities, either. Minimum wage is a pit stop for people just entering the workforce to build skills and experience.
In markets where the prevailing wage is already around $15, the mandate obviously won't hurt much. But in areas where it is lower, it wi stress businesses trying to make payroll and effectively push marginal employees out of the job market.
If you want to reach the proverbial two job mom, expand EITC/CTC, do a negative income tax, or do wage subsidies. Federal minimum wage is a cudgel. A great way for suburban liberals to signal how much they care, but it's bad policy, especially now.
In short, it's unclear why trying to help the working poor entails putting a Subway sandwich artist with a learner's permit out of a job.
Palo Alto and Little Rock should not have the same minimum wage. It's shocking to me this is controversial.
People are arguing with me that more than doubling the wage at the Tupelo Piggly Wiggly won't have any negative knock on effects and It's MMT all the way down now.
