Twenty states will raise their minimum wage on Jan. 1

yet every time the minimum wage is raised this NEVER happens.

Except when it does...

http://www.nber.org/papers/w20724#fromrss

"we find that binding minimum wage increases had significant, negative effects on the employment and income growth of targeted workers"

Economic empirical studies are complicated and often biased. There are many studies showing the minimum wage does affect employment, and many studies showing it doesn't. But it is foolish to pretend like anything is conclusive.

Demand goes up because people have more money to spend.

More money to spend on goods manufactured oversees or by machines. Further incentivising firms to export labor or automate it.

The outsourcing craze is coming to an end, Chinese labor is too expensive (wage wise and supply side)

Foreign work labor is still a lot cheaper than labor here. It will have to become a lot more expensive for large corporations to even consider coming back.

do you want people to be able to live now or would you rather they stay poor even when most jobs are automated

I want unskilled people to have an easier time finding jobs. Experience is just as important wages today, and experience is what a lot of young people lack, because it is illegal for them to work for under $7 per hour (unless they get an unpaid internship, but nobody wants to ban those).

And yes automation is happening, and the minimum wage is making people a lot less appealing than machines for firms, because human labor costs are artificially increased by the government.

But the fear you are spreading is also fueling the Basic Income fight.

I'm not trying to spread fear, I'm trying to show that well meant policies are not having a positive affect. And I fully support a temporary basic income for those earning an unlivable wage.

What happens to almost ALL hourly wage earners when automation takes over MOST of the jobs in this country?

That will take many many many decades. Low skilled jobs are really the only ones in danger. Machines are currently too stupid and unreliable to perform high skill jobs. And as old industries close, new technology helps create new industries were people can make money. This can be seen in the industrial revolution and the information age.

Your side got a solution to this problem?

Again I fully support a basic income. No other solution is really needed because automation will drastically drive down the cost of production for firms, thus prices will go down. The internet is making education accessible to almost anyone (Khan Academy), so staying up to date with the what in demand will not be a problem for people who are willing to learn.

It seems you don't have a basic understanding of economics, I suggest looking at the past minimum wage increases and see how the economy reacted.

Saying that I don't have a basic understanding of economics because I am against the minimum wage is ridiculous. Many great economists such Russ Roberts, Milton Friedman, and Thomas Sowell, support abolishing the minimum wage. This not a radical idea I pulled out of my ass.

/r/politics Thread Link - ashingtonpost.com