RE: 'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing 'If you boost minimum wages you are boosting the economy from the bottom up,' economist argues
Wow, you've completely characterized your stance and then projected it onto me. My argument is to reference history and the times when this very same thing has been done before.
You are just lamenting ideologies that have been proven false in reality.
The article you linked had analysis on how increasing minimum wages affected employment level, of which it concluded there was none which is supposedly good.
Later in the article there is this quote from Armine Yalnizyan'
"You get very poor productivity when you can coast on the fumes of just hiring cheap labour," Yalnizyan said. "Raise the cost of labour and you'll suddenly see businesses trying to do more with less."
This person has the opinion that this will happen but no hard evidence that businesses will be able to reduce costs enough not to have to increase their services cost. In history raising the minimum wage caused inflation. If I need to explain inflation to you then there's no point arguing with you. They receive more money but each individual unit of money is worth less. There is no point to increasing minimum wage, if you really want to make things cheaper for people we should be decreasing wages of people who are getting paid more than what the value they are actually providing is. ie. Finance Industry, CEOs, Managers and so on.
"The article you linked had analysis on how increasing minimum wages affected employment level, of which it concluded there was none which is supposedly good."
It states that employment levels were better after a brief adjustment period.
"This person has the opinion that this will happen but no hard evidence "
You are a strange person. You are arguing against historical analysis and claiming there is no hard evidence. What do you think the historical record they are analyzing is? It's all evidence. You are the one arguing a stance with no hard evidence.
Going back to your original stance. Inflation is not the only result of increasing minimum wage. You are choosing to have tunnel vision for some reason. You are just flat out ignoring the benefits.
I struggle to see what the benefits are. With more money floating around sure in the short term it helps parts of the economy but it causes a scarcity in the supply of goods due to more purchases happening. This causes an increase in the cost of goods (due to being rarer or their reagents being rarer) and now we are back where we started. Higher wages but with the same purchasing power as before.
Come on mate construct an argument, you're not proving anything by just saying your opinion and not backing it up.
Wow, you've completely characterized your stance and then projected it onto me. My argument is to reference history and the times when this very same thing has been done before.
You are just lamenting ideologies that have been proven false in reality.
I'm sorry you don't like the facts.
The article you linked had analysis on how increasing minimum wages affected employment level, of which it concluded there was none which is supposedly good.
Later in the article there is this quote from Armine Yalnizyan'
"You get very poor productivity when you can coast on the fumes of just hiring cheap labour," Yalnizyan said. "Raise the cost of labour and you'll suddenly see businesses trying to do more with less."
This person has the opinion that this will happen but no hard evidence that businesses will be able to reduce costs enough not to have to increase their services cost. In history raising the minimum wage caused inflation. If I need to explain inflation to you then there's no point arguing with you. They receive more money but each individual unit of money is worth less. There is no point to increasing minimum wage, if you really want to make things cheaper for people we should be decreasing wages of people who are getting paid more than what the value they are actually providing is. ie. Finance Industry, CEOs, Managers and so on.
"The article you linked had analysis on how increasing minimum wages affected employment level, of which it concluded there was none which is supposedly good."
It states that employment levels were better after a brief adjustment period.
"This person has the opinion that this will happen but no hard evidence "
You are a strange person. You are arguing against historical analysis and claiming there is no hard evidence. What do you think the historical record they are analyzing is? It's all evidence. You are the one arguing a stance with no hard evidence.
My evidence is the very well documented effect that inflation has on the economy. Just look up wage push inflation and be amazed.
http://www.investopedia.com/terms/w/wage-push-inflation.asp
Going back to your original stance. Inflation is not the only result of increasing minimum wage. You are choosing to have tunnel vision for some reason. You are just flat out ignoring the benefits.
I struggle to see what the benefits are. With more money floating around sure in the short term it helps parts of the economy but it causes a scarcity in the supply of goods due to more purchases happening. This causes an increase in the cost of goods (due to being rarer or their reagents being rarer) and now we are back where we started. Higher wages but with the same purchasing power as before.