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The problem with older studies (such as Card-Kreuger) is that technology has advanced to the point where it is possible to replace at least some minimum wage wo

The problem with older studies (such as Card-Kreuger) is that technology has advanced to the point where it is possible to replace at least some minimum wage workers, either through outright automation or increased productivity of other workers. Smart business owners will calculate the costs of replacing an employee with technology, and recalculate them whenever the variables change significantly (such as when the minimum wage is increased). If the numbers check out, minimum wage workers can and will lose their jobs. So, minimum wage increases, worker's comp changes, tax increases, etc. today may indeed spur job losses where that may not have been true before. We are in a brave new world.

boomboomsubban 9y ago
This isn't new. The Card-Kreuger study was performed at a point when many of these companies were first introducing computers for various logistics tasks, increasing productivity and replacing some jobs. Further, if you say that old studies aren't reliable because it's a brave new world, the predictions you make due to some numbers are also unreliable.
- downandout 9y ago
  Are you honestly saying that commonly available technology in the early 90's was capable of replacing as many jobs as it is today? My only "prediction" is that, as has been the case since the beginning of recorded history, business owners will always try to reduce their expenses as much as possible, and that capabilities of technology will continue to increase as time goes on. I'd say those are fairly safe assumptions. With those basic and reasonable assumptions in place, minimum wage increases today will cost minimum wage jobs.
  - boomboomsubban 9y ago
    >Are you honestly saying that commonly available technology in the early 90's was capable of replacing as many jobs as it is today? I don't need to say that, fewer jobs being lost should have still have had an impact and those studies didn't find one. There are other periods in history where the leaps forward did have something like this level of impact, and jobs didn't disappear then either. >With those basic and reasonable assumptions in place, minimum wage increases today will cost minimum wage jobs. Your reasonable assumptions include this same process happening throughout history. It has had the same result throughout history, yet you're predicting that this result will somehow change.

boomboomsubban 9y ago

This isn't new. The Card-Kreuger study was performed at a point when many of these companies were first introducing computers for various logistics tasks, increasing productivity and replacing some jobs. Further, if you say that old studies aren't reliable because it's a brave new world, the predictions you make due to some numbers are also unreliable.

downandout 9y ago
Are you honestly saying that commonly available technology in the early 90's was capable of replacing as many jobs as it is today? My only "prediction" is that, as has been the case since the beginning of recorded history, business owners will always try to reduce their expenses as much as possible, and that capabilities of technology will continue to increase as time goes on. I'd say those are fairly safe assumptions. With those basic and reasonable assumptions in place, minimum wage increases today will cost minimum wage jobs.
- boomboomsubban 9y ago
  >Are you honestly saying that commonly available technology in the early 90's was capable of replacing as many jobs as it is today? I don't need to say that, fewer jobs being lost should have still have had an impact and those studies didn't find one. There are other periods in history where the leaps forward did have something like this level of impact, and jobs didn't disappear then either. >With those basic and reasonable assumptions in place, minimum wage increases today will cost minimum wage jobs. Your reasonable assumptions include this same process happening throughout history. It has had the same result throughout history, yet you're predicting that this result will somehow change.