3 ms·

Why would it strain credulity? That's been the experience with every minimum wage increase, ever (economic boom, not bust). And the explanation is easy, trivi

Why would it strain credulity? That's been the experience with every minimum wage increase, ever (economic boom, not bust). And the explanation is easy, trivial even: people who eat at restaurants have more money to do so. US's overall economic picture is so heavily tilted in favor of the wealthy that literally anything that puts money in the hands of the poor is going to cause an economic boost.

roenxi 7y ago
> every minimum wage increase, ever ^_~ You might not have researched that. There are studies that suggest net-positive impact, but there are also studies that suggest change for the worse. > And the explanation is easy, trivial even: people who eat at restaurants have more money to do so. Minimum wage earners aren't going to be investing in increased production capacity. Best case scenario, something that was going to be consumed by the rich gets consumed by a minimum wage earner instead. Middling case scenario, something that was going to be consumed by the middle class isn't produced. Worst case scenario, less investment and we have a little bit less to go around in 10/20 years. None of those 3 is catastrophic, but it is very unlikely that minimum wage rises are a big-picture win. The idea that even with a minimum wage increase a poor person could out-compete a member of the middle class for any good or service is optimistic.
- jellicle 7y ago
  > are also studies that suggest change for the worse. There aren't. The literature is surprisingly uniform. I mean, I'm sure you can find something funded by a libertarian thinktank that says otherwise, but nothing by credible researchers doing honest research. Universally and without exception, areas that increase the minimum wage experience economic boosts compared to similar areas that don't. > Minimum wage earners aren't going to be investing in increased production capacity. Nobody said they would, or would have to. Restaurant owners do the investing; wage earners do the consuming. Investment follows demand, obviously. > very unlikely that minimum wage rises are a big-picture win. Oddly, the literature says the exact opposite. You seem to think that there's a fixed supply of restaurant meals - only 100 meals, no more, and if Sue wants to eat then Larry doesn't get to. This is... not the case.

roenxi 7y ago

> every minimum wage increase, ever ^_~ You might not have researched that. There are studies that suggest net-positive impact, but there are also studies that suggest change for the worse. > And the explanation is easy, trivial even: people who eat at restaurants have more money to do so. Minimum wage earners aren't going to be investing in increased production capacity. Best case scenario, something that was going to be consumed by the rich gets consumed by a minimum wage earner instead. Middling case scenario, something that was going to be consumed by the middle class isn't produced. Worst case scenario, less investment and we have a little bit less to go around in 10/20 years. None of those 3 is catastrophic, but it is very unlikely that minimum wage rises are a big-picture win. The idea that even with a minimum wage increase a poor person could out-compete a member of the middle class for any good or service is optimistic.

jellicle 7y ago
> are also studies that suggest change for the worse. There aren't. The literature is surprisingly uniform. I mean, I'm sure you can find something funded by a libertarian thinktank that says otherwise, but nothing by credible researchers doing honest research. Universally and without exception, areas that increase the minimum wage experience economic boosts compared to similar areas that don't. > Minimum wage earners aren't going to be investing in increased production capacity. Nobody said they would, or would have to. Restaurant owners do the investing; wage earners do the consuming. Investment follows demand, obviously. > very unlikely that minimum wage rises are a big-picture win. Oddly, the literature says the exact opposite. You seem to think that there's a fixed supply of restaurant meals - only 100 meals, no more, and if Sue wants to eat then Larry doesn't get to. This is... not the case.