RE: The DISASTER Of Minimum Wage Hikes! - Poverty And Unemployment SKYROCKET

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The DISASTER Of Minimum Wage Hikes! - Poverty And Unemployment SKYROCKET

in money •  6 years ago 

There is no good data in this post to demonstrate that minimum wage increases reduce employment. But the word "emotion" appears a few times.

it creates more unemployment (that will be hidden in the labor force participation rate)

Anti-minimum wage oligarch supporters have been saying this since before minimum wage was created. It wasn't true then and it is still not true.

It creates automation of course which isn't a bad thing economically,

Automation comes anyway. The savings from automation are not measured on some marginal increased cost per hour for workers, but rather upon revolutionary technological change that makes workers obsolete. In other words, a few percentage points of increased wages cannot compete against transformative automation.

Then, with the price of living constantly increasing due to the printing of fiat paper at the Federal Reserve,

If the money supply is a major determinant of general price levels, inflation should be much higher than it is.

People might be getting paid "more" but just because the number goes up doesn't mean the buying power goes up.

This is the biggest, most important, and most obvious misconception of minimum wage opponents. The fact is that higher minimum wages always increase buying power for wage workers. ALWAYS. The rule is that a business cannot pass all of its increased costs onto its customers. This means that -- necessarily -- the workers have more real income to spend.

People will be able to purchase just as much if not less with the larger number following the dollar sign.

So, higher wages reduce buying power? Your cards are on the table now.

Don't be dependent and don't be uneducated.

If you are working for wages, you already are dependent. Don't be indoctrinated by oligarch economics.

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Dude, it is incredible when someone is blind they don't see what is in front of them. The dude writing this post was right, we don't need more government intervention than we have to, and raising the minimum wage is one of those things we don't need I know doing that feels good, like we are caring for the poor and the needy, but we are doing more harm than good. And yes, a lot of thing on your reply are also true, but that does not mean, that the writer is wrong either. Well, regardless of anybody's opinion, now we have a lot of stores closing in the US, so will see how this is going to affect all of us.