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You're assuming that raising the minimum wage will automatically result in more unemployment, but that is empirically not the case. Higher minimum wages impleme
by jrajav 4y ago
You're assuming that raising the minimum wage will automatically result in more unemployment, but that is empirically not the case. Higher minimum wages implemented in Europe and in the US have usually translated to local economic boosts and lower unemployment, especially when the prior minimum wage was especially below indexes of productivity and total GDP.
There is probably a line where the gains of increasing minimum wage even out and start to negatively impact some industries, but the data points to us being far below that line right now. We could easily pay lowest earners more and see only positive effects from it for everyone. And since that's the case, it seems less defensible that someone can work 40 hours a week and not even come close to providing the most basic necessities for themselves.
- hansvm 4y agoIf somebody is commanding high profit margins in a locale it seems obvious that raising minimum wages could have benefits for most people. Given the examples in the US of wage increases largely happening in high CoL, high earning cities though, is it likely to be the case that applying the same playbook to less advantaged communities will have the same effects? In particular, would you not expect that a typical rural community has businesses with low margins and thus couldn't afford wage increases without major changes somewhere?