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Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such

Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Again, I don't see how the New Deal can be couched in such heroic terms. The principal influences for the New Deal were Foster and Catchings, who looked it at from the lens of economic output.

crdoconnor 11y ago
>Well, ex ante, a minimum wage increase might be opposed. Ex post, the minimum wage becomes the default reservation wage for the entire jurisdiction, and as such the industrialists will have to accept it and adjust output, production, capital stock and labor capacity accordingly. Fight it, accept it and then whinge about it and subsequently post lower profits seems to be the default modus operandi. >From that point on, the minimum wage JG force would certainly be a benefit in offering an easily accessible venue for sellers of labor who will be compensated at a price no higher than what the law sets as the minimum floor to begin with. Putting a floor on wages lowers wages to that level huh? Brave hypothesis. Too bad about the evidence. >Again, I don't see how the New Deal can be couched in such heroic terms It was never popular with neoliberals.