Re: Effects of raising minimum wages in USA

Ryan wrote:

If, as other people have suggested, the demand for labour at levels
around minimum wage is very price inelastic, then changing minimum wage
might not have much influence on quantity demanded. Raising it merely
transfers surplus from buyers of labour to workers. Which is good or
bad, depending on who you are, but not an issue of efficiency.


Nope. You are actually wrong here. Rich people limit their spending by
necessity (they already afford what they need) while poor limit their
spending by affordability (they can not buy all they need).

Giving extra money to rich by lowering the poor income you just artificially
make the stock market and real estates to grow unsubstantiately while in
exchange you slow down the economy.

Giving extra money to poor by increasing the wages you artificially
make the stock market and real estates to reduce it growth while in exchange
your economy is going to pick up steam.



.

Relevant Pages

  • Re: Brown lowers minimum wage
    ... Without a minimum wage, the poor would die out in a few generations. ... A nice steady hard core base for liebour votes. ... Unless you tune into and/or suck up to the one party state. ...
    (uk.politics.misc)
  • Re: WGA Strike 90%+ vote to strike
    ... the poor more than you help by increasing unemployment. ... Economists can only guess. ... Minimum wage does *nothing* to increase the buying power of the people ...
    (rec.arts.sf.tv.babylon5.moderated)
  • Re: The Future of RMCR
    ... minimum wage legislation, of being insensitive to the needs of the poor, ... How does your employer feel about the oil companies making record ... to the largest corporations keep inflation down? ...
    (rec.music.classical.recordings)
  • Re: The minimum wage was $8 an hour in 1968
    ... How is inflation a good thing for the poor? ... >all of the operating costs are in minimum wage labor. ... is an invitation for employers to employ illegals and to further ...
    (sci.econ)
  • Re: The Future of RMCR
    ... minimum wage legislation, of being insensitive to the needs of the poor, ... vast majority of the literature supports ... Regarding my employer, how exactly is that relevant to anything? ...
    (rec.music.classical.recordings)
Loading