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by crdoconnor
4043 days ago
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>Perhaps the other studies were "better" and not as flawed in their methods Their methods weren't flawed. That study undermined the arguments of a very powerful group of lobbyists and left them exposed. Of course they were going to do everything they could to discredit it, including but not limited to outright lies and dubious reinterpretation of the results. |
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After researching more into the subject I have come to the following conclusion:
Raising Minimum Wages marginally has no effect on employment rates, only when the increase in pay can be tolerated by employers by absorbing the increased cost by increasing prices, reducing higher paid employee's wages, reducing employee turnover costs, and reducing profitability.
The end result is a smattering of higher priced goods, lower paid managers, and less incentive to start a business relying on low skilled workers. Also, you can throw in some lower job turnover as well, since the cost of losing your job is greater.
Of course, the next question is, when is "marginal", no longer "marginal"? Is it $15/hr, $20, $50? At some point, alternative methods to manual labor will become cheaper (such as dropping $100k upfront for a burger making robot). Once we hit that point, things will get ugly fast.