Over the years there has always been a cry of doom & gloom & wide spread job losses and failed businesses whenever the minimum wage has been increased here.
Guess what? Each time the effects have been... minimal. No widespread job losses or business collapsing (oh, and you don't have much of an inflationary impact either, if any).
For a time, till the (already existing) inflation eats away at that increased income it generally results in a lift in the economy, as those that didn't have money to spare now have a bit of discretionary income. And often instead of putting it away for a rainy day, they spend it- boosting the over all economy.
And guess what?
That boost to the overall economy results in increased tax revenue for the governmen
Consulting wiki brings this up:
According to a survey conducted by economist Greg Mankiw, 79% of economists agreed that "a minimum wage increases unemployment among young and unskilled workers."
A 2015 survey conducted by the University of New Hampshire Survey Center found that a majority of economists believed raising the minimum wage to $15 per hour would have negative effects on youth employment levels (83%), adult employment levels (52%), and the number of jobs available (76%). Additionally, 67% of economists surveyed believed that a $15 minimum wage would make it harder for small businesses with less than 50 employees to stay in business.
A 2006 survey conducted by Robert Whaples, professor of economics at Wake Forest University, found that, among the economists surveyed[How many?], opinions about the minimum wage were as follows:
46.8% favored eliminating it
14.3% favored keeping it the same
1.3% favored decreasing it
5.2% favored increasing it by about 50 cents per hour
15.6% favored increasing it by about $1 per hour
16.9% favored increasing it by more than $1 per hour
According to a February 2013 survey of the University of Chicago IGM Forum, which includes approximately 40 economists:
34% agreed with the statement that "Raising the federal minimum wage to $9 per hour would make it noticeably harder for low-skilled workers to find employment", with 32% disagreeing and 24% uncertain
42% agreed that "...raising the minimum wage to $9 per hour and indexing it to inflation...would be a desirable policy", with 11% disagreeing or strongly disagreeing and 32% uncertain.
According to a fall 2000 survey conducted by Fuller and Geide-Stevenson, 73.5% (27.9% of which agreed with provisos) of American economists surveyed[How many?] agreed that minimum wage laws increase unemployment among unskilled and young workers, while 26.5% disagreed with the statement.
But that's opinion. Let's look at the hash that is their data:
Empirical work on fast food workers in the 1990s challenged the neoclassical model. In 1994, economists David Card and Alan Krueger studied employment trends among 410 restaurants in New Jersey and eastern Pennsylvania following New Jersey's minimum wage hike (from $4.25 to $5.05) in April 1992. They found "no indication that the rise in the minimum wage reduced employment." However, a 1995 re-analysis of the evidence by David Neumark found that the increase in New Jersey's minimum wage actually resulted in a 4.6% decrease in employment. Neumark's study relied on payroll records from a sample of large fast-food restaurant chains, whereas the Card-Krueger study relied on business surveys.
Additional research conducted by David Neumark and William Wascher (which surveyed over 100 studies related to the employment effects of minimum wages) found that the majority of peer-reviewed economic research (about two-thirds) showed a positive correlation between minimum wage hikes and increased unemployment—especially for young and unskilled workers. Neumark's analysis further found that, when looking at only the most credible research, 85% of studies showed a positive correlation between minimum wage hikes and increased unemployment.
A 2013 Center for Economic and Policy Research (CEPR) review of multiple studies since 2000 indicated that there was "little or no employment response to modest increases in the minimum wage." Another CEPR study in 2014 found that job creation within the United States is faster within states that raised their minimum wage. In 2014, the state with the highest minimum wage in the nation, Washington, exceeded the national average for job growth in the United States.
Of course, causation and correlation are two different things, and Washington state has had a big of inflation related to cost of living.. And economists have also tracked a strong correlation to inflation and job growth as well. Just saying. But for yet another data point:
A 2012 study led by Joseph Sabia, professor of economics at the University of New Hampshire, estimated that the 2004-6 New York State minimum wage increase (from $5.15 to $6.75) resulted in a 20.2% to 21.8% reduction in employment for less-skilled, less-educated workers. Another study conducted by Joseph Sabia, then an assistant professor at American University, found that minimum wages were ineffective at alleviating poverty for single mothers. The study further concluded that a 10% increase in the minimum wage was associated with an 8.8% reduction in employment and an 11.8% reduction in hours for uneducated single mothers.
Research conducted by Richard Burkhauser, professor emeritus of Policy Analysis at Cornell University, concluded that minimum wage increases "significantly reduce the employment of the most vulnerable groups in the working-age population—young adults without a high school degree (aged 20-24), young black adults and teenagers (aged 16-24), and teenagers (aged 16-19)."
A 2007 study by Daniel Aaronson and Eric French concluded that a 10% increase in the minimum wage decreased low-skill employment by 2-4% and total restaurant employment by 1-3%.
The Economist wrote in December 2013: "A minimum wage, providing it is not set too high, could thus boost pay with no ill effects on jobs...Some studies find no harm to employment from federal or state minimum wages, others see a small one, but none finds any serious damage...High minimum wages, however, particularly in rigid labour markets, do appear to hit employment. France has the rich world's highest wage floor, at more than 60% of the median for adults and a far bigger fraction of the typical wage for the young. This helps explain why France also has shockingly high rates of youth unemployment: 26% for 15- to 24-year-olds."
But here is where it can get fun:
In February 2014, the Congressional Budget Office (CBO) reported the theoretical effects of a federal minimum wage increase under two scenarios: an increase to $9.00 and an increase to $10.10. According to the report, approximately 100,000 jobs would be lost under the $9.00 option, whereas 500,000 jobs would be lost under the $10.10 option (with a wide range of possible outcomes).
CBO estimated in February 2014 that raising the minimum wage would reduce the number of persons below the poverty income threshold by 900,000 under the $10.10 option versus 300,000 under the $9.00 option.
So by the CBO in 2014, a $9 minimum wage would take 100,000 workers who are employed, but in poverty, and remove them from the workforce. But it also would lift another 300,000 people out of poverty. A $10.10 minimum costs 500,000 jobs, but brings another 900,000 people out of poverty. (At least, for a while) Also by that CBO report, the $9 wage increases economic activity by 1 billion dollars, while the $10.10 minimum nets $2 billion more.
Of course, it seems wiki didn't(or couldn't) cite what the estimated costs to government assistance programs would be from those 100,000 or 500,000 additional unemployed respectively. But just doing napkin math and saying they become an additional $10,000/year tax burden each that results in a cost to tax payers of either $1 billion or $5 billion respectively. (Also bear in mind that not everyone below the poverty line is eligible for government assistance, or inclined to use it)