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by odysseus 2239 days ago
On living wages in particular:

"A 2003 Cato Institute study cites data showing job losses in places where living wage laws have been imposed. This should not be the least bit surprising. Making anything more expensive almost invariably leads to fewer purchases. That includes labor."

Also:

"People in minimum wage jobs do not stay at the minimum wage permanently. Their pay increases as they accumulate experience and develop skills. It increases an average of 30 percent in just their first year of employment, according to the Cato Institute study."

Both of these are quotes from noted economist Thomas Sowell, who has done a lot of research into many studies on actual effects of living and minimum wage law.

As for the people you describe, there are plenty of people who make higher wages and are just as unreliable and untrustworthy. And there are plenty who do honest work for low wages, and work their way up.

2 comments

The Cato Institute, founded as the Charles Koch Foundation, is pro-capital, pro-deregulation, and anti-worker.

Being a noted economist doesn't mean that you aren't full of shit.

>The Cato Institute is an American libertarian think tank headquartered in Washington, D.C.

I would be curious if there were any other organizations that came to the same conclusions.

Sure, another example:

“... a number of American cities have passed “living wage” laws, which are essentially local minimum wage laws specifying a higher wage rate than the national minimum wage law. Their effects have been similar to the effects of national minimum wage laws in the United States and other countries—that is, the poorest people have been the ones who have most often lost jobs.”

- Thomas Sowell, referencing the Public Policy Institute of California’s “Scott Adams and David Neumark, “A Decade of Living Wages: What Have We Learned?” California Economic Policy, July 2005, pp. 1–23.”