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> Raising wages doesn’t create more workers, though. Of course it does. My wife doesn't work because there's nothing that particularly motivates her to work ra
by chrisseaton 5y ago
> Raising wages doesn’t create more workers, though.
Of course it does. My wife doesn't work because there's nothing that particularly motivates her to work rather than doing her hobbies. If you offered her more money, it might motivate her to re-enter the work force.
And if you can get 100k without a degree people who would be in college will be in the work force instead.
- runeks 5y agoAlso, there’s less demand to buy labor for $20/hr than to buy it for $10/hr. So, all else being equal, fewer companies will demand workers if they’re more expensive, which will also reduce the deficit. That’s the theory at least.
- guerby 5y agoIf I follow you maximum demand to buy labor is at $0/hr. But if don't pay labor, no one is going to buy your product at the end of the day. If you pay more for labour, that's more money to spend on product and services. There's an optimum somewhere between the two. Presenting only one side is a polical statement.
- Ekaros 5y agoAlways makes me wonder when people say that about jobs in service and food sector. Isn't those people exactly the ones that spend largest part of their income on those services? So if they earned more they would be first one to spend more... And labour isn't that high percentage of costs anyway...
- lotsofpulp 5y agoLabor is the highest percentage of costs in service industries. Hence the incentive to keep labor costs down.