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If you believe in supply and demand, minimum wage increases increase spending power in a group of people that tend to spend all of their money. This increases a
by daveFNbuck 8y ago
If you believe in supply and demand, minimum wage increases increase spending power in a group of people that tend to spend all of their money. This increases aggregate demand, leading to more jobs.
I'm not saying you can increase minimum wage as high as you like with no downsides, but it's more complicated than you're making it out to be.
- dorchadas 8y agoThat's the thing I hate about trickle down. Proponents argue that the increased savings will mean they'll hire more people, but they're not going to hire if there's no reason to. Instead, we just have less tax revenue overall. If you want more people hired, give tax cuts solely to the middle and lower classes. Give them more money to spend, and they'll spend it, unlike the rich. This then drives a need for more workers, creating a nice positive feedback loop.