Colorado’s Amendment 70, if it passes this November, will gradually raise the state’s minimum wage to $12.00 an hour by 2020. Some people wonder, if we pay people a higher minimum wage, where will the money come from?
The money comes from either a businesses’ profits, or its debts. But raising the minimum wage doesn’t necessarily mean customers will pay higher prices for goods and services. To the contrary, a number of real-life examples show that rock-bottom pay and benefits don’t necessarily translate into lower prices. In fact, stingy wages often prove even more costly.