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It is also indisputable that increasing the minimum wage puts more money into the economy, it's a clear stimulation. And our economy to a large extent is depend
by NotSammyHagar 10y ago
It is also indisputable that increasing the minimum wage puts more money into the economy, it's a clear stimulation. And our economy to a large extent is dependent on consumer spending. The increase in spending, vs the fewer jobs with higher minimum wags - that's the complicated question.
- BenoitEssiambre 10y agoYou dispute yourself what you call indisputable in your own comment! Fewer jobs means potentially less money in the economy (and theory says that in most cases, more money is lost from fewer jobs than gained from higher pay).
- michaelmrose 10y agoEmployers at burgers Inc hire enough people to make and serve the quantity of burgers they expect to sell. If more people can afford to buy burgers they hire more people not less. The idea that quantity of labor demanded decreases with increased labor costs is oversimplified and ignores reality.
- brbsix 10y agoOr the employers decide it now makes sense to invest in infrastructure or automation so that fewer or perhaps even no workers are required. Elevator attendants are the classic example.
- michaelmrose 10y agoAutomation gets progressively cheaper compared to human labor anyway increasing wages barely moves the turn over point where automation is cheaper.