03-11-2016, 05:14 PM
This is interesting..
It's just one study (but there are more). Market fundamentalist always argue that it will destroy jobs (making something more expensive will reduce demand for it). That is certainly possible, but it really depends on the circumstances.
In a case where there is spare capacity in the economy, the positive effects of extra spending from people with a minimum wage could well outweigh the negatives from making labor more expensive at the bottom.
Quote:A proposed gradual increase in New York’s minimum wage from $9 to $15 an hour would increase wages by an average of 23 percent for nearly 3.2 million workers by mid- 2021 and will not have a negative effect on overall employment, says a comprehensive new study released today by UC Berkeley.Study sees positive impact of raising New York’s minimum wage to $15 an hour | Berkeley News
It's just one study (but there are more). Market fundamentalist always argue that it will destroy jobs (making something more expensive will reduce demand for it). That is certainly possible, but it really depends on the circumstances.
In a case where there is spare capacity in the economy, the positive effects of extra spending from people with a minimum wage could well outweigh the negatives from making labor more expensive at the bottom.