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Thread: Artie Burns is not happy with new NFL National Anthem policy

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    Quote Originally Posted by Mr.wizard View Post
    It won't do anything to the price of milk, when you pay people more they spend more, when they spend more it creates demand and demand creates jobs which in turn creates more consumers, that's how the economy grows. Profits seem to rise every year for businesses, why shouldn't workers wages, nobody seems to worry about prices when companies are shelling out millions to shareholders and CEO's. You can't have it both ways, you can't tell me that we are in some booming economy but we can't pay people more.
    My understanding is that the unintended consequences of increasing minimum wage (i.e. increased inflation and increased unemployment) are only avoided in cases where there is little or no competition for employment. I believe that this happens when one business (or a few businesses that collude) are the only employers and all employees have to work for one of those places. Edit: I think it probably also applied to cases with very high unemployment where demand for employment is low.

    I don't think that this is generally the case in the US. I think that increasing the minimum wage in most places will increase inflation and / or unemployment. I've also heard (maybe from places like Planet Money?) that the increased unemployment tends hit minorities and low-skilled workers hardest. This is ironic because minimum wage laws are often touted as trying to help people in these groups.

    From the way you're talking about it, it sounds like you're only thinking about huge employers like Walmart or Amazon. My understanding is that most job growth comes from small businesses. My guess is that they're the ones that will struggle to pay the increased wage and that it will hurt job growth. I think huge companies will just hire less people and / or look to increase automation.

    Personally, I think that a better solution would be to leave minimum wage the same and increase support programs for people working minimum wage (maybe this is the idea behind UBI?). Or maybe it would be better to change support systems so they don't claw back as much support for people who can work more hours. My understanding is that the biggest marginal tax increases happen for those working enough hours to just pass the threshold of receiving support from social programs. If that's true, I think it's a hell of a disincentive to work.
    Last edited by Northern_Blitz; 08-18-2018 at 08:51 AM.

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