>>So the Democrats are right? Just raise the minimum wage and unemployment will drop?
I guess something got lost in the translation. The article is about a business owner saying that he can’t find people to work. It’s not about national unemployment. If you can’t find workers, perhaps paying more will encourage people to move towards your business. Google “supply and demand” for details on how that works. Basically, it says that when demand is greater than supply, prices (or wages when talking about jobs) will increase to a new equilibrium level.
No need for a supply and demand lecture. Are also familiar with the concept of elasticity of demand and diminishing marginal utility? It may be more than a casual Google read.
There is a limit to what any consumer will pay and their are limits to how much they will consume. Some jobs do not exist at higher wages because the higher wages causes the services or goods to priced too high. Therefore higher wages may help in attracting workers but it will also limit the number of jobs available. The equilibrium level may be an overall lower level of employment.
This owner would probably pay more if he could afford to. Why would he give up sales and profits if simply raising wages was the answer?
Why is it that with all of the jobless people we have in this country jobs go unfilled?