Minimum Wage

Name
Email
Subject
Comment *
File	Select/drop/paste files here
* = required field	[▶ Show post options & limits] Confused? See the FAQ.

File: 1419575011319.pdf (1.01 MB, Macurdy presentation.pdf)

Minimum Wage Econymous 12/26/14 (Fri) 06:23:31 No.13

This is a recent study on the effects of minimum wage of the economy. Here is a short description of the study.
>Over a hundred economic studies that say increases in minimum wage results in little to no job loss.
>Supporters of minimum wage increase use these studies as evidence for a need to increase the minimum wage.
>Supporters say that it helps poor families living on minimum wage.
>Study decides to make a simulation of what would happen if the minimum wage increase by Bill Clinton in the late 90s using information from a good chunk of these studies.
>Study finds that if no jobs are lost, minimum wage hikes results in increased prices for goods poor people usually buy.
>The total increase of the prices of the goods poor families usually buy is more than what they receive from welfare benefits .
>This means that minimum wage is hurting poor families, contrary to what advocates of the minimum wage say.
>Minimum wage acts like a regressive tax.

There is also other, more nuanced stuff in the paper you should check out. It's only 52 pages and a lot of that is references.

Econymous 12/26/14 (Fri) 11:28:04 No.15

YouTube embed. Click thumbnail to play.

The minimum wage just makes it illegal to work for a lesser wage. Thus, ceretis paribus, it just makes some low'valued work illegal and thus artificially drives up the wages of those who would 'suffer' from this competition somehow.

Econymous 01/11/15 (Sun) 14:45:43 No.19

>>13
>minimum wage induces price inflation
You know, another thing I was always wondering about–and this is an argument Walter Block has made as well–was how long it takes for the minimum wage to cause unemployment. E.g., lots of places might hold off on replacing labor with more capital or with more efficient labor until they have the necessary resources to attain that labor or capital. This seems to be happening currently, what with the replacement of Wal-Mart cashier clerks by those machines and McDonald's clerks by those touch-panel machines.

Econymous 01/11/15 (Sun) 19:45:09 No.20

>>19
The problem with minimum wage studies is that they often have a really small time period for study. There's a good reason for this though. If the study goes into the next year, it becomes more difficult to tell if it was minimum wage that caused unemployment, or some other thing that happened in the economy or a law that was enacted. So that might be the reason why several studies say there is little to no employment lost in states that raise the minimum wage.