Re: Poverty in the USA, Welfare in Denmark

Frank Clarke wrote:

It is a common missconception that increasing the minimum wage create
unemployment. It can if the business environment is not regulated enough
and businesses have incentive to move production offshore.
Once these incentives are removed by a smart taxation and oversight, the
connection betwen rising minimum wage and an increase in unemployment
vanish away.

...to be replaced by higher prices for everyone who buys the product or
service.

One of the biggest fallacies of thinking the libertarians have is the fact
that they believe customers rain from the sky with unlimited amounts of
cash. Due to the fact that their ideology was founded by people with very
limited IQs, they do not understand that at macroeconomic level the
workers are the customers.

If you pay less to your workers they will have less money to buy your
products. The limited libertarian mindset will scream: "But I have
customers who are not my employee, so your theory is flawed".
Yes dubbass, you do. But they are the employees of your friends who think
exactly like you do.

This kind of discution happen on this newsgroup a couple of times.
But always, a new libertarian (or the same old guy with another screenname)
come back with exactly the same fallacy.



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Relevant Pages

  • Re: Poverty in the USA, Welfare in Denmark
    ... It can if the business environment is not regulated enough ... and businesses have incentive to move production offshore. ... Once these incentives are removed by a smart taxation and oversight, ... connection betwen rising minimum wage and an increase in unemployment ...
    (sci.econ)
  • Re: Potholes
    ... unemployment / idleness rises ... production of stuff or services to be consumed increases indefinitely; ... I would like my personal unemployment to rise to ... production needs to be balanced by increased consumption, ...
    (uk.rec.cycling)
  • Re: Potholes
    ... unemployment / idleness rises ... Well, if a) doesn't happen, production per man-hour will continue to ... I would like my personal unemployment to rise to ... production needs to be balanced by increased consumption, ...
    (uk.rec.cycling)