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It may have less of an effect than it is claimed, in some jobs the demand is there regardless of wages, so any increase in cost gets transferred to the consumer
by saberdancer 6y ago
It may have less of an effect than it is claimed, in some jobs the demand is there regardless of wages, so any increase in cost gets transferred to the consumer. If your janitor gets a 20% increase, it is doubtful he will get sacked because he is needed. But if the same happens to a person packing boxes or working and McDonalds, he might lose a job to overseas or a new automated machine.
If you take it to extreme, it's obvious it's not a myth. Imagine a 100k USD yearly minimum wage. Obviously all unskilled worked wouldn't be able to earn this much for the employed, but in places where you have to have someone do the job, they'd enjoy their new high minimum wage.
- Shacklz 6y agoYou might be interested in this article here: https://www.nytimes.com/2020/05/08/opinion/sunday/us-denmark-economy.html https://www.nytimes.com/2020/05/08/opinion/sunday/us-denmark... (note that technically, Denmark has no minimum wage - but mechanism that essentially enforce the same) A few quotes here: > Starting pay for the humblest burger-flipper at McDonald’s in Denmark is about $22 an hour once various pay supplements are included. > Americans might suspect that the Danish safety net encourages laziness. But 79 percent of Danes ages 16 to 64 are in the labor force, five percentage points higher than in the United States.