this post was submitted on 18 Sep 2025
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I’m open to changing my mind, but you need proof rather than just saying that I’m incorrect. I have yet to see compelling evidence that raising minimum wage makes any difference at all in the long term. A lot of studies have been made to prove that it doesn’t cause job loss but none that prove that it changes the levels of inequality or pulls people out of poverty in real economic terms.
Proof: It's literally what the Mexican government did in 2018-2024. Lifted millions of people out of poverty even as the economy mostly remained the same and/or shrunk. See: https://apnews.com/article/poverty-mexico-president-andres-manuel-lopez-obrador-social-welfare-c7ec7f184ce8163e84fffa1b9f47aed8
Right there it says that there are other measures that led to the reduction in poverty. Here’s my thing, if you increase the minimum wage, don’t change the definition or the line at which someone is considered to be living in poverty, and run a census the next day poverty will appear to have been reduced by a lot because everyone is now making the increased minimum wage yay! However if there’s inflation, in a few more months we might be back to where we were in the first place in real terms, however unless you change the line in which poverty begins, you will still be able to clam that you decreased poverty. Poverty is not about the money someone is making, but rather how much what they make buys.
I’m in favor of social nets but, again, I dont see compelling evidence that raising minimum wage is anything but a placebo.