Each of the elasticity conditions comes with its own drawbacks. As another Educator has detailed, under most elastic conditions, increasing an employer’s salary tends to lead to a reduction of the workforce. While some workers benefit from the increase, others do not. Now, the fired workers receive no wages and must depend on whatever benefits they can acquire from the government.
An elastic environment might help low income workers because it gives them the hope that the prices will change and thus their wages will increase.
Inelastic conditions, too, could benefit low income workers if the stable prices and wages are already benefiting them.
A perfectly competitive market might be, as the name suggests, the perfect choice. Although, if employers end up taking prices that aren’t so high, then the workers are out luck.
In reality, the problem with minimum wage has less to do with elasticity and more to do with international trade deals, globalization, and the trend of big corporations paying their employees as little as possible regardless of elasticity or supply and demand.
For example, Amazon and Walmart have made billions of dollars in profit because of COVID-19. The demand for what they can supply is high, yet the wages for their workers remain low.