A discussion about the process, steps and options of starting a new business

Our own WorkFromHomeMomma weighs-in on the current minimum wage debate that we're having here at BizCradle. 

She comments, "I'm not sure that they will lay people off. I just think that they'll raise prices to compensate for the increased cost."

That is certainly another effect of the federally mandated minimum wage increase.

So, lets carry that premise out a bit: Let's say that instead of laying off some of their minimum wage employees, businesses just all raise their prices to accomodate the increased costs of employing their minimum wage employees. 

The end result of that?  The increase in their minimum wage has just been negated by the corresponding increase in prices at the stores that sell the products and services that they need to live!

It's a tough subject, and I certainly feel for people who use minimum wage jobs to support a full-time life here in the United States.  I don't see how they do it.  That being said, you can't argue with the reality of how businesses will address any mandated increases in employee costs: They will either fire some of their employees, or raise their prices.

Neither option seems good for the minimum wage employees that this new mandate is supposed to help.