When was the last time a "value" meal from McDonalds, let alone any other fast food chain, did not cost five dollars or more? When was the last time premium gas was under a dollar a gallon? It's hard to remember, isn't it? Wouldn't it be great if everything cost a nickel, like back in the good old days? In Nickel and Dimed, Barbara Ehrenreich, explores the minimum wage and the trials one goes through trying to live off the minimum wage. She goes on to explain that many of her coworkers live in motels, which she eventually has to do, in order to live. She tells how it is virtually impossible to live comfortably working one full time minimum wage paying job. Raising the minimum wage results in higher costs, inflation, etc... Therefore making it more and more difficult to support oneself off of a minimum wage salary alone.
According to the laws of economics, it's not logical for things to have gotten more expensive; competition should drive prices down. Then why have prices continued to rise over the years? The continuing demand of more money for less work has forced Uncle Sam to raise the minimum wage innumerable times in the last half century, which results in higher prices for the rest of us. However the raise in minimum wage is not the only factor which causes inflation, the premise of this argument is based on the minimum wage and its responsibility to the raising of prices for Americans.
Additionally a raise in the minimum wage results in a raise in the cost of living, it also causes the dismissal of hardworking people who are happy with their current income. When the firing axe starts to fall, seniority often determines who goes and who...