Let’s start with sanity, some logic.
Theorem: A firm cannot pay workers more than the value that they add to the firm and remain in business.
Corollary 1: Imposing a minimum wage will determine who can get a job and who cannot. Corollary 2: A minimum wage does not impact the salaries of workers who add more value than the minimum if wages are set in a market environment.
Corollary 3: Eliminating the minimum wage will create employment opportunities for those who add value less than the prevailing minimum and will not result in reductions in wages for workers who add value in excess of the prevailing minimum.
GM is an example of a firm that was compelled to pay more than the value workers added and it failed as predicted a decade ago. Only huge contributions of capital by those stock and bond holders who lost their investment and taxpayers who bailed it out have made today’s GM possible. Whether it can survive on its own is still unknown.
OK, makes sense, workers must “pay their own way” or the firm loses money hiring them. The minimum wage sets this hurdle – a worker must bring at least 2,000 hours x minimum wage to the firm to be employed. The higher the minimum wage, the higher the hurdle the worker must surmount. Thus, setting the minimum wage determines who can get a job and who cannot.