Theres a huge debate going on in the country right now about whether or not raising the minimum wage will be good for the economy. Why does Jeff think raising it will backfire?
First of all, raising the minimum wage will simply lead to inflation and just generally undermine the economic well-being. The debate is revolving around this idea that, if you raise the minimum wage, it will pump more money into the economy. People who are getting paid more will have more money to spend, and businesses and industries and the overall economy will benefit from all this additional purchasing. And this maybe would be the case, if America was a closed economy. But its not. America is part of a global economy, and raising the threshold of the absolute minimum a person can make will grossly inflate the dollar, and ultimately will make us less competitive in the global economy. Of course, the vast majority of people are so enamored with the idea, and so many political agendas are revolving around it because its popular with so much of the electorate, that most people arent willing to recognize or consider the drawbacks of raising the minimum wage.