I keep seeing things like this, and it really bugs me:

Since 2013, I have been warning those pushing for an increase in minimum wage that it will simply cause higher prices. I, along with others, have been shouted down and told how stupid and wrong I am.
Seattle and California have a $20 per hour minimum wage. The answer is “real communism hasn’t been tried.” People in the Seattle area now have to contend with $26 coffees and $32 sandwiches, with taxes and delivery fees comprising nearly 30 percent of the total bill. Instead of listening, the left is now demanding $33 an hour as a new minimum wage.
If $20 is good, and $33 is better, why stop there? Why not make the minimum wage $250 an hour? Then we can all be rich!
Next month, Florida’s minimum wage will increase to $14 per hour, a 61% increase from the $8.56 minimum wage in the state back in 2020. Not coincidentally, the median home price in Florida went from $306,000 in 2020 to $436,600 in 2025, which represents a 43% increase in house prices.
Rents saw similar increases. Rentals were costing a median of $1187 in 2020, and now are running about $1752 in 2025, a 67% increase.
Increase the minimum wage, and prices will increase to match. Economics, it’s a thing. The socialist blames a free market, but it’s market manipulation that is causing a huge chunk of this.
It isn’t just housing. As long time readers are aware, my Denny’s Grand Slam scale is a great example of this. That breakfast has 2 strips of bacon, two link sausages, two eggs, and two pancakes. A good cross section of food products. I have been using the price of this breakfast in the same Denny’s location since 1997 as an indication of costs.
- Here we are in 2025, and the cost of that breakfast is now $14.19.
- In 1997, that breakfast cost $1.99
- In 2009, it cost $4.99
- In 2021, it cost $9.29
- Just a year later in 2022, it was $11.59
- In 2023, the rate slowed a bit. The breakfast was $11.99 in April
- By November of 2023, the price was up again, to $12.99
So the breakfast in 2021 was $9.29, and it is now $14.19, a 65% increase. It’s almost like prices across the board are increasing to match wages. It’s a simple rule- more money (demand) chasing the same goods (supply) equals higher prices. Now there is a bit of a mismatch, because population (which is also part of demand) has increased a bit, but it still illustrates the point.
Before any of my readers respond with “well, technically…” please understand that my relatively short posts are not an exhaustive treatise on the issue. Books have been written about this, and I am not writing a book here. I had one reader respond to a recent post that mentioned income taxes with a comment that stretched into more than 600 words, explaining that I had calculated the taxes incorrectly. This post went into details about exemptions, credits, and other factors that made my numbers incorrect. My posts aren’t meant to withstand an IRS audit. I use public sources and usually post links to them, but they are still meant to be quick examples to illustrate the point. Responding with an over 600 word comment to explain one insignificant sentence in a 450 word post is just silly.
