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Raising the cost of labor means less employment. This is really unassailable and as much as people desire it to not be true, it is. It may not show up as a st
by LanceH 5y ago
Raising the cost of labor means less employment. This is really unassailable and as much as people desire it to not be true, it is. It may not show up as a straight line like an Econ 101 graph, but it's 100% there. It gets confirmed over and over again.
No, I'm not going to provide sources on this. They are everywhere.
Sure there are some places paying less because they have jobs and a choice of workers. Artificially raising the pay will yield the same number of jobs. This isn't true across the entirety of the US labor market.
- imtringued 5y ago>This isn't true across the entirety of the US labor market. There is also a labor market outside the US that puts a ceiling to US wages.
- andrewjl 5y agoNot so simple. Raising the cost of labor also means increased aggregate demand as workers make use of a higher disposable income. On the business side, capex increases as routine work is automated. As we've in prior periods, automation creates more jobs than it eliminates, whether the through higher-end tasks or through increases in demand due to fall-off in breakeven price.