Minimum Wage Vicious Cycle

[TommyJeff]

This post has such great information. Thanks to all

 

[PRB]

Prices sure, but you are talking about a 1 time increase in the money supply dolled out to EVERYONE equally. Not going to really effect employment. Inflation and wages adjust in the long run.

Of course there is going to be negative effects, but in your scenario Prices are not going to be sticky. You are not looking at a huge decrease in employment. Now just increasing the Minimum Wage way up...sure. absolutely you are right. But not with accross the board increases in wages.

Slutter McGee

how many dollars is "way up" vs "tolerable"?

 

[Warrior_of_Freedom]

Ok so the US has a surplus of unskilled labor. Wouldn't that be directly related to the mass immigration of people with unskilled labor entering the United States? Hence, taking jobs. That's why even if the minimum wage is removed, it will do nothing to increase the quality of life for everybody because for anyone who will not mop vomit off the floor for 3 dollars an hour, a desperate immigrant will do it.

When the country doesn't have the infrastructure to support so many more people immigrating to it, all it can do is bring everyone else down with it.

 

[PRB]

Ok so the US has a surplus of unskilled labor. Wouldn't that be directly related to the mass immigration of people with unskilled labor entering the United States? Hence, taking jobs. That's why even if the minimum wage is removed, it will do nothing to increase the quality of life for everybody because for anyone who will not mop vomit off the floor for 3 dollars an hour, a desperate immigrant will do it.

When the country doesn't have the infrastructure to support so many more people immigrating to it, all it can do is bring everyone else down with it.

which would in turn make the country less appealing to newcomers.

 

[Slutter McGee]

how many dollars is "way up" vs "tolerable"?

If I had the answer to that I might win a Nobel. Nobody knows exactly where that line is to make the distinction between just binding and strictly binding. Small increases simply don't lead to less employment. The studies show this.

Slutter McGee