Has minimum wage ever jumped drastically in any areas? What happened to the economy there?
Arizona jumps by about $2/hr this month. A lot of people speculate that it will either stimulate or ruin the economy, but I'm curious to know if there are any examples of places that have already done this and what happened there.
I rather doubt that any 'minimum wage' set by government or state economists matter very much.
As an example I would expect that 'Illigal' Mexicans get paid a wage that is less than the official 'minimal wage'. Supply versus Demand is the 'real' wage setter, and whichever side is the most desperate gets short changed.
In the long run they have little impact other than driving inflation and devaluing currency. It's a knee-jerk stop-gap with only temporary results either way. Doesn't address the real issue of buying power or lack of quality jobs that improve buying power of the citizens and strengthen a nations production independence.
