"Asking Liberals where priced and wages come from is like asking six-year-olds where babies come from." --Thomas Sowell
That statement extends to a whole lot of moderates and Conservatives as well, I think. The wealth redistribution fans, however, have an especially hard time with the concepts behind prices, wages, supply, and demand.
It's really quite simple. The higher you jack up the "minimal wage", the less low-income adults get hired. After minimum-wage hikes, employers generally hire less, replace low-income adults with teenagers from middle- and high-income families, and increasingly rely on automation or reduction in services to save money. Self-serve scanners are installed in supermarkets, businesses automate their telephone receptions, and fast-food diners bus their own tables. For a limited payroll, and no extra profit margins to compensate for the increase in payroll, businesses will save by hiring less and cutting back services. Minimum wage laws therefore reduce available jobs, and they hurt the low-income population.
Even the liberal crwod understands this concept, even though they fail to acknowledge the mechanics behind it. If it was a great tool for improving the conditions for low-income families, why not jack the minimum wage up to $20 per hour? None but the most rabid socialists would even consider such a step, because they understand that companies would just lay people off en masse, because they would not be able to meet payroll. Well, if $20 is unreasonable, who decides what *is* a reasonable hike? Answers from the Statist crowd will vary, but the answers are always wrong. The "fair" minimum wage is determined by contract, between the employer and the employee...not by do-gooder wealth redistribution champions.
Of course, the crowd that screams for "fair minimum wage hikes" always has answers, and in this case they usually blame the evil, profit-making plutocrats who exploit workers in order to maximize their profits.