Thoughts on unemployment

[nleseul]

Standard economic theory is that minimum wage laws result in unemployment, because they set an artificial floor on the price of labor, and therefore preclude people whose labor is worth less on the market than the minimum wage from finding a job

Comments

[ladyfelicity]

I lost you somewhere. First of all - isn't this "poverty line" kind of arbitrary? Who determines what you need to live? It varies *widely* by city, even within a state like California. Rent can be twice as much in one place as another

[lalato]

I don't think anyone making less than $11000 per year is too worried about Ferrari vs. basic transportation. Just sayin'.

--sam

[ladyfelicity]

That's true, but many people spend outside their means through borrowing.

[lalato]

I don't care how screwed up lending has been over the last few years... no one was giving truly poor people loans for Ferraris. ;)

--sam

[ladyfelicity]

I haven't tried it, so I'll have to take your word for it. :)