If the playing field were level then it theoretically could be true. But since the playing field is not level (due to many different variables like unions, illegals and supply and demand) it does not play out that way.


A small business service company with reoccurring clients struggles to raise fees according to inflation. Basically the cost can go up for a service company without the market in their industry income increasing.

Example:
Pool service company in Southern California that began 20 years ago might have raised prices from $90/month then to $120/month today.

Housing market, fuel, insurance, taxes and fee in that same area all more than doubled. Which means that your theory of cost equivalency doesn’t matchup.

All those industries have minimum wage some where within them. And margins shrink or grow different for all of them.

Since inflation takes into account all areas then averages the combined increases and decreases in cost it can hurt an industry (specifically service industries) when the blanket minimum wage increases.

Even Unions understand this. The prevailing wage for trades varies based on the industry. They recognize that blanket income isn’t effective and adjust the prevailing wage according to skill sets and industries.

If minimum wage were pegged at an individual industry and area inflation I could consider supporting it. But even then it presents problems with the internet.

It’s to much regulation that ultimately suffocates ingenuity and the entrepreneurial spirit.