Ok, lets dispense with the theory that if a company’s cost rise too much that they will ship the jobs overseas (call centers etc.) or develop machines that can do the work and are never tardy, never take sick days and don’t require health insurance (robots that can flip burgers etc.). That is just theory.
The minimum wage should be raised to $15/hour because results of ACT, SAT, State and Federalproficiency tests, and international comparisons clearly demonstrate that today’s labor force entrant is of superior intelligence and is more knowledgeable than ever before. These workers are flat-out more productive that ever before.
More pay is warranted because today’s worker weaned on video games, Facebook, iPhones etc. clearly have a much greater attention span that previous workers.
Young couples are chomping at the bit to dish out $75 for a night of baby sitting on top of their entertainment expenses. People who need car givers for infirmed relatives are clamoring to double their wage costs.
Finally, the debate is topped off with immigration both legal and illegal. Companies want to pay more even though there is a surplus of immigrants willing to work for less. Employers would never hire under the table for less And of course instead of challenging our youth to study for and achieve in Science, Technology, Engineering and Math, it is better to encourage them to take the new $15/hour minimum wage jobs and hope to attract intelligent immigrants for the higher skill jobs.
The case is pretty clear because Tom likes the sound of $15/hour. The only thing better might we $100/hour.
Some tell Tom that a tight labor market causes real wages to rise, but Tom knows that this is also just theory.