Well, my first post is facetious, but I still don't get why rising the minimum wage would be a "bad" thing. Rising it from 5.15 (which comes as a laugable 10,712$ a year last time I checked) is good for the middle class and it would tie the minmum wage to the rate of the inflation too.
It might affect small businesses, but most of America's proletarians work for corporations that can afford an extra 1.60$
a min. wage is a binding price floor. which means that the price floor is set above the current min wage of labor. price floors DISTORT a free market. there's a reason why if you leave the market alone in most situations, it'll balance itself out, eventually reaching an equillibrium where the supply of labor equals its demand.
with a higher min. wage, the equillibrium is untainable because there's a min. wage employers can't go below. this causes a disproportionate amount of workers to labor suppliers and what politcians euphemestically label "surplus of labor"...aka unemployment. if i could draw a supply and demand graph illustrate this, i would.
dude, out of prodigious amount of topics that are debated by economists...this is not really one of them. the majority of them agree that price floors distort the market.
You also seem to be forgetting another factor: because the workers now have a higher salary they now have to work harder and produce more, thus increasing the levels of productivity. Furthermore, history has shown that everytime people have gotten an increase in salary they tend to spend more money, thus feeding the economy in its continual circle.
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It might affect small businesses, but most of America's proletarians work for corporations that can afford an extra 1.60$
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with a higher min. wage, the equillibrium is untainable because there's a min. wage employers can't go below. this causes a disproportionate amount of workers to labor suppliers and what politcians euphemestically label "surplus of labor"...aka unemployment. if i could draw a supply and demand graph illustrate this, i would.
dude, out of prodigious amount of topics that are debated by economists...this is not really one of them. the majority of them agree that price floors distort the market.
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