To: spikeytx86
Well the old it will cause unemployment argument is dated and well a myth (unless it is raised to something like $9 an hour or something like that). The only way a minimum wage law can increase anyone's income, aside from artificial pegs (e.g. union contracts that specify that a person gets X times minimum wage) is by eliminating from the workforce those who would be unable to demand more. Eliminating those workers from the workforce is likely to boost the pre-tax income of those who remain, but since those people will then have to be supported by the welfare state, the net effect is detrimental to everyone (except those who profit from the welfare state, of course).
54 posted on
11/09/2006 5:33:55 PM PST by
supercat
(Sony delenda est.)
To: supercat
Not true, depending on the size of the increase the business could absorb it through reduced profits. The business could also reduce work hours or limit hiring. It would have to be a sizable increase to actually eliminate someone. Again, I am not advocating the MW increase, just saying that the unemployment response is usually overrated. It has to be a sizable and sudden increase to induce unemployment.
55 posted on
11/09/2006 5:36:50 PM PST by
spikeytx86
(Pray for Democrats for they have been brainwashed by there fruity little club.)
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