4 ms·

That assessment is wrong. Higher wages in reality and theory usually mean less demand for labor. Employers have to compensate by raising wages or letting employ

That assessment is wrong. Higher wages in reality and theory usually mean less demand for labor. Employers have to compensate by raising wages or letting employees go, and both decisions negatively impact the business. I'm not an opponent of a sensible minimum wage legislation, but I'm not kidding myself over the consequences. In Switzerland I highly doubt if minimum wage is doing anything good...

rodgerd 12y ago
I guess the multiple peer-reviewed studies which have been published countering that particular bit of econo-religious dogma have passed you by. Which surprises me, given I'm pretty sure at least one of them made HN.
vasilipupkin 12y ago
in Chicago minimum wage is one of the highest, if not the highest in the country and so is the unemployment rate. The effect of raising minimum wage will highly depend on what level it is raised to and how strong the local economy is.
- vasilipupkin 12y ago
  Normally, I am not too bothered by the downvotes, but this one makes me chuckle. effects of unemployment rate is not a settled matter in economics, and it's highly politicized - with left wing leaning economists publishing all sorts of empirical studies showing no effect or mixed effect and right wing economists doing the opposite. But, clearly, raising minimum wage to $15 in a strong economy like Seattle will have a less adverse effect, if any, than in a weak local economy such as Chicago
  - morgante 12y ago
    The downvotes are because you didn't make a clear point. Chicago has a high minimum wage and high unemployment, seemingly affirming the economic rule of price floors creating surpluses. So was that your point? Just stating a data point and then offering a generic platitude (things depend on things) isn't making a substantive contribution.

4 ms·

That assessment is wrong. Higher wages in reality and theory usually mean less demand for labor. Employers have to compensate by raising wages or letting employ

by bayesianhorse 12y ago

rodgerd 12y ago
I guess the multiple peer-reviewed studies which have been published countering that particular bit of econo-religious dogma have passed you by. Which surprises me, given I'm pretty sure at least one of them made HN.
vasilipupkin 12y ago
in Chicago minimum wage is one of the highest, if not the highest in the country and so is the unemployment rate. The effect of raising minimum wage will highly depend on what level it is raised to and how strong the local economy is.
- vasilipupkin 12y ago
  Normally, I am not too bothered by the downvotes, but this one makes me chuckle. effects of unemployment rate is not a settled matter in economics, and it's highly politicized - with left wing leaning economists publishing all sorts of empirical studies showing no effect or mixed effect and right wing economists doing the opposite. But, clearly, raising minimum wage to $15 in a strong economy like Seattle will have a less adverse effect, if any, than in a weak local economy such as Chicago
  - morgante 12y ago
    The downvotes are because you didn't make a clear point. Chicago has a high minimum wage and high unemployment, seemingly affirming the economic rule of price floors creating surpluses. So was that your point? Just stating a data point and then offering a generic platitude (things depend on things) isn't making a substantive contribution.