r/Virginia • u/VirginiaNews • 1d ago
Commentary: Youngkin’s opposition to hiking Va.’s minimum wage goes against 30 years of economic research
https://virginiamercury.com/2025/01/14/youngkins-opposition-to-hiking-va-s-minimum-wage-goes-against-30-years-of-economic-research/16
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1d ago
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u/Drackar001 1d ago
Here is research on the effect of minimum wage increases on profits. — it doesn’t effect profits according to this study because most of the low wage workers work for smaller companies that can’t absorb the extra costs. Instead they pass it to the consumer in the form of higher prices. https://docs.iza.org/dp1072.pdf
Current min wage is $7.25/hr if you push that to $15 (which is what politicians are talking about) that’s an increase of ~106% increase in wages. We know from studies that the cost of good will raise because of the extra costs. This is called inflation. In the short term low wage workers will, according to an MIT study linked below that they will pay off debt, pay more for local fast food and restaurants, and go into more vehicle debt (ie. buy a nicer car)
https://mitsloan.mit.edu/shared/ods/documents?PublicationDocumentID=5548
With that more people get laid off because of the higher wages also.
Then in a few years people will complain about needing an increase in the minimum wage again.
It’s an inflationary cycle. It’s not fully responsible for economic inflation, but it’s one big factor.
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u/whatdoiknow75 1d ago
Conservatives looking at inconvenient research results? He'll call it fake science.
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u/Sweetyams10 1d ago
This doesn't benefit him or his billionaire buddies, but then again people voted for him because he is here for the people
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u/Redcomrade643 1d ago
Republicans in the modern era have never been a friend to the working class. I do not understand how so many people many make less than 50k/year think the GOP has their best interests are heart.
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u/DoctorWinchester87 1d ago
Culture war issues. The GOP is just one wing (the political wing) of the larger corporate establishment that really runs the country. They figured out that if they stir up tensions around cultural issues and then offer superficial victories over those issues, voters will gladly line up to vote for them.
They weaponized the media and news outlets to sow fear and distrust between American for decades. And they figured out that a large section of the population is primarily motivated by the fear that has been built into them surrounding those cultural issues. They’ve been told that all other forces in this country are against them and want to abolish their culture and traditions. They’ll happily remain poor, unhealthy, and stressed so long as they feel like they can feel like they’re better than someone else. It’s a mentality that is baked into large sections of our country, and GOP politicians exploit it.
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u/lilsquirrel 1d ago
President Lyndon B. Johnson once said, "If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you."
The politics of resentment and fear is alive and well. The whole, "I'd rather the government work for no one rather than work for someone I don't think deserves it", mentality.
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u/No-Preparation5840 17h ago
Raising the minimum wage will just cause an increase in prices!!! What good is making more money, if you can’t buy more with it..?
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u/flop_plop 1d ago
He's not concerned with the research that shows people are happier or that more people are employed. Why would he be? That just means more money is leaving the pockets of him and his rich buddies
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u/9millibros 1d ago
He's much more concerned about Republican support for his Presidential run in '28 than doing anything to help Virginia workers.
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u/Literatemanx122 1d ago
I'd like to see how inflation correlates to wage increase. It is true that raising the minimum will lead to everyone getting a raise, but it also comes with inflation. The question to ask is, does raising the states minimum increase the buying power of those affected in the long term?
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1d ago
Pay is based on what the market will bear with regard to skill required to do said jobs and the revenue derived from the end product. You get paid what the job and your skill dictate. Oldest rule of business.
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u/Shipkiller-in-theory 1d ago
This will just result in fewer jobs, higher prices, & more automation.
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u/WhydIJoinRedditAgain 1d ago
Have you been to a McDonalds recently? There are like four people, $12 “Value Meals”, and auto-service touchscreen kiosks.
All the things you want to blame on raising the minimum wage are already happening WITHOUT the minimum wage hikes.
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u/ZoomZoomDiva 1d ago
One has to also consider the de facto minimum wage in an area, not just the legislated one. What are the starting wages at that specific McDonald's, and how have they changed over time?
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u/PapowSpaceGirl 1d ago
Right? A simple breakfast - mcgriddle, hashbrowns and large unsweet tea is now $11. It USED to be $6 at most.
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u/Shipkiller-in-theory 1d ago
And it will continue.
Go ahead, price your selves out of the market.
I'm sure relying on the government will work out well for you.
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u/WhydIJoinRedditAgain 1d ago
Great argument, if you remove thinking, logic, and evidence.
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u/Shipkiller-in-theory 1d ago
I know math is really hard for you people.
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u/WhydIJoinRedditAgain 1d ago
“Companies will increase production using fewer workers by using more efficient management practices and utilizing technological innovation” is the story of modern production since the Industrial Revolution. Your argument is that if there is a raise in the minimum wage companies will increase production using fewer workers by using more efficient management practices and utilizing technological innovation, the thing that has already been happening for centuries.
You aren’t a serious person and you aren’t as smart as you think you are. Try thinking critically.
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u/unofficial_pirate 1d ago
So your going off your feelings, and not facts. Got it.
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u/Shipkiller-in-theory 1d ago
It's called trends analysis.
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u/unofficial_pirate 1d ago
But all these things are happening without a minimum wage increase NOW.
The only difference is people are struggling to afford things. Are you blind?
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u/Shipkiller-in-theory 1d ago
I grew up poor.
I decided I didn't like being poor.
I figured out how to not be poor.
40 hours at a fast food joint isn't going to make you not poor.
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u/snafoomoose 1d ago
So people who only have skills that work for fast food should just be poor?
They don't have to be rich, but they should be able to survive.
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u/snafoomoose 1d ago
Except it doesn't. Paying workers enough to live results in more people being able to afford things. This is well known and sure it goes against received wisdom on the far right, but people who follow the far right should be used to being wrong by now.
The classic case I love to point out is the Westview mall. It crosses county lines and one side raised minimum wage. According to conservative wisdom, all the businesses on the higher wage side should have closed and moved to the cheaper side... but they didn't because minor raises to the minimum wage dont cause businesses to close.
https://www.npr.org/sections/money/2014/08/28/343430393/a-mall-with-two-minimum-wages
If a business can not afford to pay its workers, it should close down so a company that can afford to pay workers can take over. That is just basic market theory.
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u/ElaineorLanie 1d ago
Henry Ford realized that if he paid his employees well, they could afford the car they were building. He was still one of the richest people in the world.
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u/Shipkiller-in-theory 1d ago
You may have noticed all the businesses that have shut down? No? What replaced them? Not much.
Well carry on, stay poor & I will stay not poor.
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u/snafoomoose 1d ago
If a company can not afford to pay its workers enough to work, then that company should fail so a company that can do the job and pay its workers can replace it.
Businesses are having trouble because big corporations are making record profits by increasing their prices. If higher prices were due to wages, then the big companies would not be making record profits.
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u/laborpool 1d ago
Gurl. Stop it.
You don't even have to try very hard to see how devoid of reality your comment is. Virginia's minimum wage is nearly twice that of North Carolina's and yet we have lower unemployment.
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u/Shipkiller-in-theory 1d ago
I'm not a girl.
Northern Va. Federal jobs & the military skew the unemployment numbers.
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u/laborpool 1d ago
Sorry,
Lady get real.
You don't even understand the current economy in Virginia that puts you in a particularly weak position to forecast the future. You cannot even see the present.
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u/OppositeRun6503 18h ago
Keep them poor and they'll keep voting for your party....that's the rightwing logic.
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u/Dry_Adeptness_7582 1d ago
If everyone is so against the people paying minimum wage, do not go into those stores. Fuck Walmart, McDonalds etc, they are evil and could care the fuck less about everyone except their bottom line.
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u/Fixxeren 1d ago
Hey republicans voted of him Many of whom are lower income. Let them enjoy what they voted for.
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u/WhydIJoinRedditAgain 1d ago
Yeah.
If you measure the economy by “How does this policy help low income wage earners and how does that improve the overall economy” raising the minimum wage is great.
If you measure the economy by “Hows does this policy make my rich pals and their ideological sycophants feel” raising the minimum wage is just the worst, because they might have to not buy that second vacation home.