Economists agree: Raising the minimum wage reduces poverty
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Economists agree: Raising the minimum wage reduces poverty
1–10 of 89 posts
Re: Economists agree: Raising the minimum wage reduces poverty
#2Of course it will, and will also reduce expectation of service industry tips so it's deserved rather than a given.
Re: Economists agree: Raising the minimum wage reduces poverty
#3Well, the research studies only tell you:
Raising a very little bit of the minimum wage reduces a very little bit of poverty in the short run, without discussing any negative impacts to the society (in the short run or in the long run).
It is very different from "raising the minimum wage reduces poverty".
Re: Economists agree: Raising the minimum wage reduces poverty
#4So I hope those skinflints do just raise the minimum wage a tiny bit. They need to raise it a lot. A minimum wage of $50.00 per hour would relieve a great deal of poverty.
P.S. http://cafehayek.com/2014/01/the-wages-of-journalist-incompe...
Re: Economists agree: Raising the minimum wage reduces poverty
#5Just think how prosperous we would be if the minimum wage was $100 an hour! ;-)
Re: Economists agree: Raising the minimum wage reduces poverty
#6If I recall, economists tend to point out that the causation between minimum wage and poverty is actually reversed from its "intuitive" position.
What actually tends to happen, is that first, a city/county/state/country's economy improves to the point that everyone is making a certain wage, just because of competition for workers. And then, policy-makers notice this, realize that there's an upside (better civic image) and no downside (workers out of jobs) to raising the minimum wage... and so they do.
Thinking of minimum wage as an adjustable variable, rather than an indicator, is trying to use the tail to wag the dog.
Re: Economists agree: Raising the minimum wage reduces poverty
#7Of course it will, and will also reduce expectation of service industry tips so it's deserved rather than a given.
Only if the service industry exceptions from minimum wage are removed as well.
Re: Economists agree: Raising the minimum wage reduces poverty
#8So I hope those skinflints do just raise the minimum wage a tiny bit. They need to raise it a lot. A minimum wage of $50.00 per hour would relieve a great deal of poverty. P.S. http://cafehayek.com/2014/01/the-wages-of-journalist-incompe...
No it wouldn't. The amount of dollars you would need to exchange for goods and services would just increase while the exchange rate for dollars would decrease.
Re: Economists agree: Raising the minimum wage reduces poverty
#9Well, the research studies only tell you: Raising a very little bit of the minimum wage reduces a very little bit of poverty in the short run, without discussing any negative impacts to the society (in the short run or in the long run). It is very different from "raising the minimum wage reduces poverty".
I doubt studies connect what happens to employment when a bubble collapses. It is then that the full effects of a drop in demand are felt and the new higher wage really causes demand to collapse.
By then, everyone advocating this price control is long gone. Its a time bomb that explodes in the faces of low wage workers, preventing them from repricing their services to mer the new conditions.
Of course, smaller, smarter countries like Ireland figured that out and cut their minimum wages in response to the lowered demand.
Re: Economists agree: Raising the minimum wage reduces poverty
#10Duuuuuuuuhhhhhhh