It is clear that none (or almost none) of the posters on this thread has ever read an economist’s explanation of minimum wage. I have. There are several different points of view on the subject, but let me summarize them. And just to be clear, I am not an economist, but I play one on line.
Raising the price of something (oil, matzoh, unskilled labor) does not necessarily cause a decline in demand. And the price of goods and services are based on market forces, not only the cost of producing the goods and services.
Some economists who support a rise in the minimum wage believe – correctly, IMO – that the relative bargaining power and market information of unskilled, non-union workers is lower than their employers’ bargaining power and market knowledge, and that (i) the government has a moral obligation to help unskilled workers, and (ii) higher-paid laborers become bigger consumers, which stimulates the economy. Some workers may lose their jobs, but many of them will enjoy increased income. Whether this income comes from the employers’ profits or from an increase in revenue that the employers can impose on their customers varies from product to product and service to service and is, in part, a function of the gross profit of the product or service, and, of course, elasticity of demand (I’m too lazy to explain that one). So all you (or should I say, “us”) amateur economists ought to read some real economists to understand the issue.
Or you (and I) can just read the online blather that supports your (or my) unfounded personal beliefs.