You mention the small business, many would be exempt if they employee few people -I forget the cut off 20? But increasing MW might NOT affect them. MW Laws
Plus many employees are exempted...
AND they could get around it by turning all hr employees into salaried ones at the same weekly rate !
So if they're paying $7.25/ hr... salary them at $1200 / month ! Not a good solution, but IF they were truly desperate (make or break) they could take that option.
BUT one problem with a low MW is that it feeds into those that prefer welfare to work... at the current wage, welfare pays better ! Not right, but many feel the big guys play by their own rules, so why shouldn't they? NOT appropriate, but hard to argue against.
IF the Govt didn't set some kind of low bar w MW laws, we'd have sweatshops like Asia !!
No good answers on either side, Dave.
Addendum: according to this STUDY
a 10% increase in wages would result in prices rising only 1.6%, but could result in a 2.5% decrease in employment. Like I said NO good answers !!
How about we tie a increase in the MW to every time Congress raises their own salary ! IF we'd done that 25 years ago, the MW would now be $50 / hr !!!