4 ms·

This is one of the best comments I've seen on this website about an economic topic. I agree with you completely; minimum wage is almost a political stunt. Rent

This is one of the best comments I've seen on this website about an economic topic. I agree with you completely; minimum wage is almost a political stunt. Rents will follow the increase, and the gov't gets to collect more payroll taxes. Win win for the ruling class. The tax structure will have to change for real income to rise. The people who own capitol will have to be tax incentivized to put it to productive uses and have real, long term growth for everyone (capitol owners, workers, society, etc.).

pydry 5y ago
>minimum wage is almost a political stunt. Rents will follow the increase The studies I've seen demonstrate that it gets taken out of profits. Almost a direct transfer from shareholders to the minimum waged. Not that there are many papers that study this, coz if you're an economist it's not exactly a surefire route to a cushy job at a prestigious think tank. That's why there are 10x more attempts to study the effect on employment instead (which is minimal, if you believe dube, lester, reich). There's a slick lobbying industry dedicated to telling us that raising the minimum wage would be awful for everyone involved - ESPECIALLY those on minimum wage. Who do you think pays for that?
- MaxBarraclough 5y ago
  > > minimum wage is almost a political stunt. Rents will follow the increase > The studies I've seen demonstrate that it gets taken out of profits. Almost a direct transfer from shareholders to the minimum waged. Aren't these different topics? The wage hike might come out of profits, but that doesn't inform whether rent gets correspondingly more expensive.
  - pydry 5y ago
    shrug apparently overall prices increase no more than 0.4% when minimum wage goes up 10%. Why would rent be different? Supply and demand would not be changed.
    - jkmcf 5y ago
      Demand might go up with individuals moving out of shared housing. Many areas suffer from housing shortages, and no one wants to build affordable housing.

pydry 5y ago

>minimum wage is almost a political stunt. Rents will follow the increase The studies I've seen demonstrate that it gets taken out of profits. Almost a direct transfer from shareholders to the minimum waged. Not that there are many papers that study this, coz if you're an economist it's not exactly a surefire route to a cushy job at a prestigious think tank. That's why there are 10x more attempts to study the effect on employment instead (which is minimal, if you believe dube, lester, reich). There's a slick lobbying industry dedicated to telling us that raising the minimum wage would be awful for everyone involved - ESPECIALLY those on minimum wage. Who do you think pays for that?

MaxBarraclough 5y ago
> > minimum wage is almost a political stunt. Rents will follow the increase > The studies I've seen demonstrate that it gets taken out of profits. Almost a direct transfer from shareholders to the minimum waged. Aren't these different topics? The wage hike might come out of profits, but that doesn't inform whether rent gets correspondingly more expensive.
- pydry 5y ago
  shrug apparently overall prices increase no more than 0.4% when minimum wage goes up 10%. Why would rent be different? Supply and demand would not be changed.
  - jkmcf 5y ago
    Demand might go up with individuals moving out of shared housing. Many areas suffer from housing shortages, and no one wants to build affordable housing.