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>>The main problem with regulation is that it's too easy to capture by various corporate lobbies. > This is like saying "the main problem with laws is..." Is

>>The main problem with regulation is that it's too easy to capture by various corporate lobbies. > This is like saying "the main problem with laws is..." Is it ? A corporation that already pays employees higher than minimum wage can drive out smaller shops that do not pay much more than minimum wage by working to raise the minimum wage. This enables them to raise prices and screw customers over if the smaller shops go out of business. 'Murder laws help murders by allowing them to capture murder laws' Does not quite seem to work

crdoconnor 9y ago
>Is it ? A corporation that already pays employees higher than minimum wage can drive out smaller shops that do not pay much more than minimum wage by working to raise the minimum wage. If you're talking about, say, Walmart, they lobby very hard against minimum wage raises and even go as far as to threaten what appears to be self destructive behavior to prevent it from occurring (e.g. threats to close profitable stores). Minimum wage goes up -> Walmart profits go down. It's that simple. (see minimum wage across state borders by Dube, Lester & Reich). They drive out smaller shops by using their buying power to beat suppliers down on price, using their size to get sweetheart land deals and sweetheart tax deals with local officials desperate to bring jobs to the area.