Thursday, March 31, 2016

The Trouble with the Minimum Wage

It looks like companies that are effected by a rise in the minimum wage, mostly being in competitive industries, raise their prices enough to cover almost the entire difference on labor costs. That means that the disemployment effects are due to people a little buying less from those businesses. therefore the disemployment effects are very small.

Never the less I am against minimum wage because I believe that even a very small increase in unemployment is very bad easily outweighing the benefit to those whose wages increase. I believe that the nonmonetary benefits of having a steady job are large. Also many people already work for less that minimum wage so...

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