I used to get angry at people who didn’t understand the effects of raising the minimum wage, but now I just laugh (and cry) because they never understand no matter how you explain it. They always think that everyone is going to get richer, when instead, they ended up staying about the same, and everyone else gets poorer. =(
its worse than that..
lets take a basic closed economy example
Guy1 makes $50,000 a year and guy2 makes $200,000 a year. A good house costs $200,000
The rich guy can buy a good house in one year, the poor guy can buy one in 4 years.
After a numbe of years inflation increases the costs for everything, so the cost of living has risen 100%
So guy1 now makes $100,000 a year and , and guy2 makes $400,000. A good house now costs $400,000.
The situation with the house is exactly the same.
The rich guy still can buy one in one year, the poor guy still can buy one in 4 years.
But instead of making $150,000 a year more than the poor guy, the rich guy now makes $300,000 more.... and thats evil!! The rich got richer!