When employers hire someone, they pay what a worker is worth to them. If he or she is not worth the minimum wage, whatever it maybe, the boss will not go for it. Whether the wage is $10 an hour or $2. Raise the wage too high and it is more likely that employee will be priced out of the picture. If an employee is truly needed, he or she will get what value that employee has in the employer’s estimate.
Union contracts for its higher-wage employees are always adjusted upwards from the minimum wage, so the employed folks on the top are the ones who truly profit from the minimum wage increase.
Potential lower-rung employees, subject to minimum wages, often never get hired, because they have little skills and are thus too expensive to employ.
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