Quote:
|
Originally Posted by Adam
Quote:
|
Originally Posted by Sauron
Quote:
|
Originally Posted by ManM
An increase in minimum wage will increase the cost of unskilled American labor.
|
Except that the data doesn't indicate that.
To the amazement of classical economists who predicted that a hike in the minimum wage would reduce the number of people being employed at the margin, as well as put small business owners out of business, the reality has been quite the opposite. |
Did you leave out part of your response, Sauron? It looks like you're a) making the rather absurd claim that a minimum wage hike will not increase the cost of unskilled labor and b) actually responding to ManM's first few numbered points, not the bit you quoted. |
I'm trying to anticipate his next argument. I'm assuming by "increase the cost of unskilled labor", that ManM is going to tell us about small businesses that can no longer afford to hire as many people, or are forced to go out of business.
As for whether or not a minimum wage hike increases the cost of unskilled labor, it depends upon how it's structured, and who you're looking at when you say "increases the costs". Are you talking about the immediate employer? In that case, a wage hike *might* increase the cost of skilled labor - it depends on how it is enacted. If it's accompanied by a tax credit, or a reduction in govt support programs (i.e., taxes), then the net effect to the immediate employer could be slight, or zero.