Re: Effects of raising minimum wages in USA


"Nospam" <nospam@xxxxxxxxxxx> wrote in message
news:14590081.qsx4shvdPs@xxxxxxxxxxxxxx
Michal Gancarski wrote:

Yes, there are. Minim wage is an important factor among less educated and
less paid workers. For expample I do not think anybody would propose that
minimu wage influences unemployment level of well-paid specialists and
freelancers.

It does. Better wage means more spending into economy.
More demand create better jobs.

Better wage means I, as the employer, have to spend more to pay
those wages. Either I make cutbacks (which likely won't happen -- we
run a pretty lean machine in my shop) OR, alternatively, I raise my prices
so I can now afford to pay the higher wage.

So ... You've got an extra dollar an hour in your pocket, but
everything you buy from me and all the other shop owners who
have to support the higher wage costs more so you what do you
have: a net null effect. More money in your paycheck being cancelled
out by higher prices at the cash register. You've gone nowhere.

How does that solve anything for anyone?

Then, you're back next year saying the inflation monster is taking
over, as evidenced by the higher prices at the cash register, and
demand still higher wages, and we start the whole she-bang all
over again.

I ask again: How the hell does this solve anything for anyone?



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