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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

in #money8 years ago

Hard to argue against data, but in a situation where knowledgeable and skilled employee A is now paid slightly more than entry level employee B due to the minimum wage increase, what is the justification for employee A's lack of compensation relative to the value he adds compared to the little value employee B adds?

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If your skilled labor job isn't paying as much as an easier unskilled job why would you stay? If people move to easier, but equally paying jobs, then supply and demand kicks in forcing employers to raise wages for skilled employees.