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Some of our country's best periods of growth have followed increases in minimum wage. In 1996-1997, when minimum wage went from 4.25- 5.15, we had tremendous growth in the following couple of years. Then after 10 years of no minimum wage increases to 2007, we finally started to increase minimum wages again and the economy has been getting better over the past couple of years.
Can you point to any evidence that people will get laid off by increasing wages?
If you want to get into the topic of auto manufacturers, let's use a real life example like Henry Ford and his decision to set a $5 a day wage and to realize that when his own employees could afford the cars they made, the company would be successful. That is the difference between the past when people thought long term and the present when people think short term about how they can get the biggest bonus even if it risks bankrupting the entire corporation.
http://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/
Are you saying that the minimum wage increases were responsible for the majority of the economic growth? Interest rates were low at that time and then there was the internet boom among other factors.
A minimum wage is a price floor. A simple supply and demand graph will show supply of workers will outweigh demand by employers, an inefficiency. Companies will reduce labor if their marginal revenue product is not enough to cover the cost of labor.