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Arananthi March 22nd, 2015 5:51am

Claiming employment will go down if wages go up is completely bass-ackwards. Employment goes up in response to demand -- but demand comes from customers, who are actually employees at other businesses. Thus, a higher minimum wage will mean MORE jobs.

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ozzy
03/24/15 5:28 am

Minimum wage legislation was originally introduced by the classic progressives I. The 1920's to keep blacks from being hired.
Also .. Raising the MW causes unemployment to rise and causes artificial inflation. This hurts the people who need it most

bringstheeagle Colorado
03/23/15 9:39 pm

Lookout here you're asking reasonable and rational questions. Lol.

Liberty 4,032,064
03/22/15 10:55 am

Also, pigs are made of pepperoni, and pizza often has pepperoni. Therefore, the more pizza you eat, the more flying pigs will crash into the ocean, causing Global Warming.

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Arananthi Literal Ninja
03/22/15 11:58 pm

Seriously, though, which part of this is wrong? 1) Demand causes employment. 2) Demand happens when people both want your product and have the money to purchase your product. 3) The money to purchase comes from wages earned.

Liberty 4,032,064
03/23/15 2:47 am

The problem, as with the above, isn't that the individual pieces don't have some amount of truth to them. It's that you're attempting to apply Austrian theory to a Keynesian model while also assuming everything is static in relation to it.

BusinessJustin Tamriel
03/22/15 7:44 am

No, not necessarily. Higher minimum wage would produce a marginal increase in demand that would likely be met with an amount of inflation to counteract it. Minimum wage is a terrible place to act because it only affects the lowest skilled among us,

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BusinessJustin Tamriel
03/22/15 7:45 am

we need policies that increase available income on all ends of the income scale.

Arananthi Literal Ninja
03/22/15 10:19 am

No. Higher minimum wage results in higher costs to the companies, yes, but to pretend that those costs are entirely passed on to the consumer in the form of extra costs is silly -- businesses have lots of ways that they can deal with higher costs

Arananthi Literal Ninja
03/22/15 10:22 am

other than raising prices. They can accept lower profits, they can cut back hours, they can find new less-expensive vendors for their products, or they can increase marketing spending and make up the difference by selling more. All of these are

Arananthi Literal Ninja
03/22/15 10:23 am

happening right now in SeaTac and Seattle, where the minimum wage has risen without any noticable economic catastrophe.

Arananthi Literal Ninja
03/22/15 10:24 am

Now notice two things: 1) Corporate profits are higher today than they have EVER BEEN. Higher than the Guilded Age, the Robber Barony, higher than any time in US history. Corporations have LOTS of profit they can afford to be handing out as wages.

Arananthi Literal Ninja
03/22/15 10:26 am

2) Right now, the majority of small business owners ALSO support a hike in the minimum wage, because small businesses largely benefit by having a customer base that has more money (and other reasons, too.)

Arananthi Literal Ninja
03/22/15 10:28 am

Finally, to your second point, you need to follow the money. When you benefit the lowest-skilled, you benefit the fastest-spending. When you benefit the fastest-spending, you benefit the businesses that they buy from, which means you benefit all of

Arananthi Literal Ninja
03/22/15 10:29 am

that business' employees (assuming the CEO doesn't just absorb 100% of that increase as profit.) Giving money to the spending classes causes economic growth country-wide, across the entire economic spectrum.

TheMadScientist the mad laboratory
03/22/15 4:42 am

Yes. However, it also means higher resource consumption per capita.

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TheMadScientist the mad laboratory
03/22/15 12:20 pm

Boosting the market by speeding the exchange of goods will use goods faster. Think about it as the current system raping the middle class, the proposed system would rape something else instead - in this case the source of resources.

Arananthi Literal Ninja
03/22/15 11:55 pm

So you're talking environmentally, then? I'm still not clear on what you're referring to.

Arananthi Literal Ninja
03/22/15 11:56 pm

So you're not actually going to say anything?

Torfin Never Behind
03/25/15 12:17 am

I answered your question what more did you want to say?

Ebola1 Florida
03/21/15 11:50 pm

No. When jobs are eliminated or consolidated then there is less demand.

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Arananthi Literal Ninja
03/22/15 10:31 am

www.dol.gov/minwage/mythbuster.htm Read point 2. The entire notion that raising the minimum wage will cause jobs to disappear has been disproven. The only people who say that anymore are politicians who are against it for lobbyist reasons.

Ebola1 Florida
03/22/15 10:37 am

Interesting. Thx for the reference.

kermie gaytopia
03/21/15 11:16 pm

If all wages rise together, yes. It won't really work if just a couple companies do it.

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