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That's a local effect though (your quote). The money that goes in that workers pocket has to come from somewhere else. Also raising the minimum wage possibly ca
by harryh 14y ago
That's a local effect though (your quote). The money that goes in that workers pocket has to come from somewhere else. Also raising the minimum wage possibly causes some (slight) additional unemployment.
So what's the overall stimulus effect on the economy? Unclear. It appears as if the second study on the page you linked to might try to address it, though it looks to me like more of an advocacy paper than an impartial study. That's just from a quick glance though. I will try to read further.
My overall impression of the minimum wage debate is that it has a very high ratio emotion :: impact. Whatever overall effects it has on the economy appear to be quite small (almost within the noise), and yet it always generates a lot of intense argument. There's lots of signaling going on here I think.