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>Literally the opposite. In which case we should see toilets going uncleaned, coffee not being made in response to minimum wage hikes and a clear spike in unem

>Literally the opposite. In which case we should see toilets going uncleaned, coffee not being made in response to minimum wage hikes and a clear spike in unemployment that couldn't be attributed to anything else. Doesn't happen (c.f. Dube, Lester, Reich (Nov 2010)). >These famous studies of minimum wage always come with caveats, on both side of the aisles. Dube, Lester, Reich is the only one I'm aware of which comes without caveats.

conanbatt 7y ago
> In which case we should see toilets going uncleaned, coffee not being made in response to minimum wage hikes and a clear spike in unemployment that couldn't be attributed to anything else. Doesn't happen (c.f. Dube, Lester, Reich (Nov 2010)). This effect could be explained by capital consumption. If you already have a business you can't switch your entire capital to adjust to the new costs. But new businesses will invest more in less-labor-intensive coffee machines, smaller/worse bathrooms, and wouldn't fire the staff immediately and take the profit hit now and not invest later. Human systems tend to hide away consequences by playing with future expectations, because they are easy and invisible. This topic is actually academically difficult as it is, I'm not an academic or professional economist, and I simply distrust all parties. Thus, in case of doubt, do no harm. Do nothing.