4 ms·
Read the article. One effect of raising wages would be that McDonald's would then have access to a larger pool of labor (people who would not work there at $7/h
by Domenic_S 13y ago
Read the article. One effect of raising wages would be that McDonald's would then have access to a larger pool of labor (people who would not work there at $7/hr but absolutely would for $15/hr). As a result, the poorest & least skilled labor may not benefit at all from a raise in wage, rather, they'd be priced out completely because of a huge influx of "better" workers.
- drabiega 13y agoThey said this in the article, but it doesn't make any more sense here than it did there. If unemployment remains the same, where are these 'better' workers coming from?
- thecage411 13y agoOne possibility: unemployment is defined as someone who is not working AND actively looking. If wages at McD went up to $15 an hour, some people who were not actively looking may enter the workforce.
- drabiega 13y agoThat is certainly true. However, if I had said 'employment is not decreasing' instead of 'unemployment is not increasing' it would still have been a valid critique without being vulnerable to that response, however.
- thecage411 13y agoYep. FYI economists use the term "labor force participation rate" for this concept.