Thank you, that makes a lot of sense and I told him this. But this didn’t bother him at all. In fact he said that since all the manual labor has been outsourced or replaced by machinery, there are now only service sector jobs, that can’t be outsourced. So when the minimum wage increases, labor costs increase but this wouldn’t hurt businesses, they would just have to raise prices and consumers would be willing to pay the higher prices (because they can’t import the service, I assume).
This was his reasoning. Is there any merit to this theory? And wouldn’t low skilled workers be hurt by the price increases as well? Thanks again!