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To: flatsville who wrote (106564)	6/5/2001 7:58:34 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 436258

f - <<<<<< >>>Don said that raising the minimum wage increases unemployment among those directly affected<<< If I recall the claim was institutional unemployment...and I still have yet to see any evidence of that. Nonetheless the argument always turns to whether or not the recipient is "deserving" and the only "deserving" are those with families and since many minimum wage workers are single they minimum workers can't possible be "deserving." <<<<<<< My position has consistently been that increasing the price of anything reduces its demand, and that in any given case, the actual unemployment depends on too many variables to be predicted, as it has a substantial threshold effect (increases in wage costs can be offset by other changes, including fringes, to a limited degree before explicit layoffs occur). If the minimum wage is below market rates in a given geography, it will naturally have little initial effect. I believe 'institutional' unemployment was in a quote I referenced, but I have no idea what the qualifier means in context. I certainly do not know what you mean by it. 'Deserving' has nothing to do with my views, although different groups of low level workers have different needs and may effectively bid their labor at higher or lower rates. Regards, Don