Increased Minimum Wage + Simple Logic = Increased Wealth Inequality



This concept is very simple. I intend this post for the uneducated masses who want minimum wage increase, so I'll explain this in very basic terms.

You agree that the super-rich corporations that we all hate so much can afford higher labor costs right? So somehow a higher minimum wage would really stick it to 'em? Well...

You're Wrong

You are actually playing into their hands perfectly. Who is going to go out of business when labor costs increase? The giant corporations with the highest market share? No. They can take a few increased costs. 

Which businesses get slammed? The small businesses with no market share and no capital to challenge the big businesses.

Believe it or not, there are small businesses that are hardly scraping by. They don't have the sort of crazy margins the major corporations have because their market share is so poor, and they do not have access to efficient mass production methods. These small businesses, if forced to provide higher labor costs, will inevitably go out of business.

Supporting the minimum wage causes wealth inequality.

As soon as you put them out of business, you remove their competition from the market. As you know, competition drives down prices and therefore decreases profitability for the market share leader (i.e. the major corporations) by allowing customers to choose the business with the lower prices. The law of supply and demand dictates that with more supply comes lower prices. Less businesses = less supply = higher prices.

So now without competition, those major corporations can charge higher prices and be far more profitable thereby increasing their wealth and decreasing the wealth of the middle class small business owner.

What's wrong with killing the middle-class business owners? They aren't poor.

Apart from making the rich richer, there is another principle you need to understand called upward mobility. You know those people who make minimum wage that we all care about so much? Yeah, the ones you thought you were helping? Well forget about them ever getting a middle class wage in a small business. Forget about being able to start a business to make a profit.

Not gonna happen. Costs caused by minimum wage are a barrier to entry to the success of your dream business.

So your middle class is effectively shrunk, the rich get richer, and there are more poor people making *gasp* you guessed it! Minimum wage.

...But Obama said so!

Maybe its about time to realize that the government could care LESS about the wealth inequality. The more poor people there are, the more people they can manipulate by pretending to fulfill their needs. They don't care about wealth inequality because THEY are benefiting from the rich getting richer.

Think about it. Who is paying for their election campaigns? Small businesses? Heck NO!

Support the minimum wage and support increased wealth inequality. Its obvious now that any politician who supports minimum wage is just playing into the hands of the super-rich. Share on Facebook, Twitter, Google Plus and plaster this post on every pole in town. Get the word out to the uneducated masses that THEY WILL PAY (or at least the middle class), not the rich people.