An $18 minimum wage would increase the pay of all hourly workers by 20% and would not cause significant job loss or inflation.

**All hourly wage earners benefit:** Low wage workers have to purchase goods and services from all hourly wage earners. If all hourly wage earners get a raise, an increase in the minimum wage will not greatly affect low wage workers' budget. Consider Wal Mart. They see a small decrease in customer purchasing power but get an identical increase in the purchasing power of their employees.<br><br>**Wal Mart doesn't have to increase costs** They will continue to operate with the same workers and at the same profit margin. This is great for the workers because they can be paid a higher wage without Wal Mart facing increased costs. <br><br>**Other workers also benefit** Even if only Wal Mart employees get a raise, it is easy for other businesses to hire them away. Workers can simply look for the highest paying job. If McDonald's does not pay at least as much as Wal Mart, McDonald's will lose all their employees. <br><br>**Why only low wage workers get increased pay:** A more expensive minimum wage will cause the automation of more expensive workers. If McDonald's can automate a $50K/year worker at a cost of $20K/year then they may automate that worker. However if McDonald's can automate a low wage worker at a cost of $20K/year, they won't automate because they have to pay $50K/year for the worker. <br><br>**Why this won't cause inflation** The government is printing money but this money is not getting to consumers. As long as this money stays with the wealthy, it can't cause inflation. Raising the minimum wage is one of the few ways to get money to consumers.<br><br>**Why this won't cause inflation: The Details** If you increase the minimum wage, Wal Mart will continue to operate with the same employees. However McDonald's or other low wage employers have to increase their pay by 20%. They don't have to automate because they can continue to operate with the higher cost. However if McDonald's automates at a cost of $20K/year then the government has to pay $20K/year to the replaced worker. This $20K/year was not being paid to the worker before. The government is printing money but the money is getting to consumers, thus inflation. <br><br>In the McDonald's/Wal Mart case there is almost no cost. It is a small cost to automate the worker. One month of severance pay covers the automation cost. <br><br>Automating a $50K/year worker is very expensive. It costs many years of severance pay before the automation cost is recovered. As a result, the higher minimum wage results in low wage workers being paid more. The higher minimum wage causes higher paid workers to be automated and replaced. Because of the higher automation was more expensive than the higher wages, the net cost is lower. <br><br>**TL:DR** An $18 minimum wage would increase the pay of all hourly workers by 20% and would not cause significant job loss or inflation.