This is generally the number one reason as to why the Republican party is against the Minimum Wage. What good is a raise, if then the cost of living goes up, which cancels out that raise? .
There is so much more to it....
First off, payroll is only around 10-12% of Retail Sales.
Not all employees that a business has are minimum wage, there is usually your accountant and asst manager and manager that are not at minimum wage, even yourself if you are the owner and getting paid as an employee you are not paying your self minimum wage....
Overall in the USA, 2-3% of all employees get paid minimum wage I have read....so, raising the minimum wage a couple of bucks over a two year period on less than 5% of ones employees across the usa is NOT GOING TO BREAK THE BANK and the cost of living will not, and HAS NEVER gone up with a minimum wage hike.
And please NOTE the cost of living
has NEVER gone up when the minimum wage has been raised over all of the years we have had it!
And on another note....the cost of living or the cost of goods goes up when their fuel/shipping prices go up, it goes up when the materials go higher in price, it goes up when they have to pay more for health insurance for their employees, and it goes up when they pay the CEO a multi million dollar bonus,
So WHY do republicans worry about the costs of goods going up IF 2% OF THE WORKFORCE GETS A minor raise?
I think that many are being lead to believe what they believe by poeople giving them FALSE information, perhaps and they haven't had the time to do the math themselves or the research themselves?
I also believe that the cost of goods would go up as one of my republican friends had told me.... but then, I thought that I would look in to it on my own and I just love math and numbers so, I did....and it blew me away that so little of society really would be affected by a minimum wage hike....
Leading to your second point of when is the middle class going to get any kind of reprieve? But I don't want to get in to that on this post...
Anyway...just thought you needed to know some of this...
Care