Study: Increasing minimum wage does not reduce jobs
Study: Increasing minimum wage does not reduce jobs
A new report shows minimum wage increases have had little effect on the number of jobs in Maryland and nationwide. While the rhetoric around increasing the minimum wage often comes with the caution it will reduce low-wage employment, a new review of decades of research showed most studies found no ...
This has been studied over and over and always with the same results. The economy isn't hampered, jobs aren't replaced by machines and overseas workers, the cost of goods doesn't go up, and factories don't close. The main impact is that quality of life increases, health spending increases (now that people can afford to take their kids to the doctor), and corporate profits decrease very slightly.
Especially in this economy of runaway corporate greed, we need a meaningful increase in wages
Increasing minimum wage puts more money in the economy which people will spend which puts more money in businesses so they can pay their people more putting more money in the economy.
The only reason the wealthy don't like this is because their money passes through the hands of the unclean masses instead of going directly into their offshore tax haven accounts.
Where I live, Washington, the minimum wage is $16.28 p/hour. Across the border in Idaho, the federal minimum applies — $7.25.
Businesses on the higher-wage side of the border are doing fine, and Spokaners do not drive across the border into Coeur d'Alene for cheaper groceries or a half-price Big Mac.
Economic models keep most numbers fixed to simplify their math. They call it ceteris paribus.
So when economists claim that increasing wages will reduce the amount of jobs, they came to that conclusion by keeping corporate profits fixed while doing their math. So any business expense is paid for by reducing workers or wages.
In the real world corporate profits are not fixed and have grown faster than wages for decades.
Keep that in mind if an economist ever tries to claim increasing wages will reduce the quantity of jobs.
None of the people uttering that lie will care about this news.
Our corporation funded a study that says this study is wrong. /s
Corporations were bragging about record profits not that long ago, and then basically admitted to price gouging. Folks are extremely underpaid in most areas. Not shocked at all.
No shit
From the abstract of the actual study
We find that most studies to date suggest a fairly modest impact of minimum wages on jobs: the median OWE estimate of 72 studies published in academic journals is -0.13, which suggests that only around 13 percent of the potential earnings gains from minimum wage increases are offset due to associated job losses. Estimates published since 2010 tend to be closer to zero.
Card and Kreuger found this out when they did a large study back in the 90s when each state could finally set its own minimum wage.
People are scared of less jobs but that should be the goal.
We already reached the threshold that allows everybody to work only a fraction of what is considered normal, and still have everything we could ever want.
"Everybody needs a job" is a mindset that should have been obsolete for a long time.
The only thing increasing minimum wage must do is take money out of the wealthiest pockets.
And that's why wages stay stagnant.
Every other argument is a red herring.
If its a real business and not a grift or privtization of gains/socialization of losses, they will pay closer to the right wage to have the right people fill the chair
Raise minimum wage? No, tax cuts for only certain low wage jobs instead. What are you gonna do, vote for the other parties we've forced off the ballots?
The root cause isn’t minimum wage. While that can be important it does affect a lot of small business. With that said the root cause is corporations using profits to line their pockets instead of helping the economy by paying their employees.
We need to stop skirting around the issue that is corporate America. we need to tax the fuck out of corporate profits BEFORE they hide it all in investments or stock buybacks.
As an employer, I hire when I have the work an employee can do at a profit I feel makes it worth my time to get the work and manage them. That’s the whole calculus of hiring.
Joke's on us, fast food jobs were replaced by touch screens anyway.