The imposition and subsequent increases of minimum wage hurts the economy and hurts the working poor who actually work at minimum wage the most. When the minimum wage was first imposed in 1933, it resulted in the loss of jobs of 500,000 blacks:
"For example, the minimum wage provisions passed as part of another act in 1933 threw an estimated 500,000 blacks out of work"
Proponents of minimum wage increases often show that increases in minimum wage have not resulted in increased unemployment or decreased economy or show states with higher minimum wage have higher employment, but they state numbers at times when the economy is expanding which would mask the negative effects of minimum wage, and different states with totally different economies can't be compared. What would be needed would be statistics of what the economy would be for the same location and economic history, but that is not possible. During economic rise, the negative effects of increasing the minimum wage are minimized because businesses can afford to pass the additional cost to their customers who then can afford it because they have the money, but the increased cost to consumers does have an impact on demand so that it is lower than it would have been without the higher cost. So the minimum wage acts as factor in pulling down the economy. Where the increase in minimum wage hurts most is long past the point at which the minimum wage is increased. When the economy enters its next cyclical downturn, that is when the additional cost hits the hardest and when unemployment is worse than it would have been without the minimum wage increase. The working poor are the worst hit because they tend to stay at minimum wage because they lack the skills for higher paying jobs. When the minimum wage squeeze is felt the most by businesses, it the same working poor that the politicians who say they are protecting are the ones hurt the worst. Instead of getting a living wage, these people end up with no wage at all. The government needs to be stopped from helping us shortsightedly to the point where they actually hurt us in the long run.