Minimum Wage and Unemployment

[© tweed]

Depends on what the definitions of 'greatly' and 'slightly' are, but I'm certain it would have a bad effect on employment--but not as bad of an effect as raising it to 15.00 would.

I'm going to alter that opinion.  A minimum wage abolishment likely would increase employment, but a vast majority of the new jobs would be sweatshop-like and the quality and pay of all jobs would decrease over time.

[A18]

Any increase in demand from a higher minimum wage will represent a decrease in demand somewhere else. There is no change, and you're displaying your ignorance of economic subjects by continuing to assert otherwise.

A dollar is a dollar. Neither "helps" the economy by producing new demand. It's a phony argument.

[opebo]

Any increase in demand from a higher minimum wage will represent a decrease in demand somewhere else. There is no change, and you're displaying your ignorance of economic subjects by continuing to assert otherwise.

A dollar is a dollar. Neither "helps" the economy by producing new demand. It's a phony argument.

That argument refers to State shaping of economic behaviour during crisis, such as a depression.  Redistribution is always a good thing for the working class, but it is generally good for the economy during bad times as the poor will spend their money, while the rich will not - they will keep it under the mattress.

[A18]

They keep it in banks, where it is loaned out. If it's not spent, then obviously prices will just fall, and it's incumbent upon the Fed to purchase securities to maintain price stability.

[opebo]

They keep it in banks, where it is loaned out. If it's not spent, then obviously prices will just fall, and it's incumbent upon the Fed to purchase securities to maintain price stability.

No, it is not loaned out if potential borrowers see no benefit in doing so, such as during the depression or in Japan.  'Pushing on a string' don't you know.

[MODU]

It would slightly decrease since market conditions would take over and salaries/pay rates will adjust to the appropriate levels.  Not to say that it won't do a disservice to those who only make minimum wage now, but unemployment will decrease.