Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (498352)	7/26/2009 7:25:26 PM
From: longnshort	1 Recommendation Respond to of 1578270

then why not make the minimum wage 100 bucks an hour

To: combjelly who wrote (498352)	7/26/2009 8:32:16 PM
From: i-node	Read Replies (1) \| Respond to of 1578270

It is now believed by many economists that hikes in minimum wage have little or no negative effects. This is, of course, absolutely wrong. But first, there is the question longshort keeps asking -- why not set the MW at $100/hour? The answer, of course, is that it is a matter of basic economics that it would disrupt the economy. We know that. You should have learned that in any economics course you have taken. The principal argument in favor of a MW at all is that on balance, the poor are better off than without it. It costs jobs, but to a point, that is more tolerable than having plenty of low-wage jobs. In fact, until the work of Card & Kruger in the early 90s (conveniently, coincidental with Clinton's claim that increasing the MW doesn't reduce employment), practically NOBODY would have argued the point, because almost EVERY economist knew that increasing the MW would reduce employment. And frankly, the work of Card & Kruger is a bit inexplicable, and thus, is of questionable validity. 35 years ago in grad school, we did a survey of this subject, and even then, the research on this subject was indisputable. There were 100s of articles on the subject, and almost all showed conclusively that increasing the MW reduced employment. You are way, way, way off base on this claim.

To: combjelly who wrote (498352)	7/26/2009 8:35:48 PM
From: i-node	2 Recommendations Read Replies (3) \| Respond to of 1578270

>> No employer is going to lay off workers unless business slows down. You ever run a fast food joint? I have. And you can easily make do with one or two fewer people on a shift if you have to. You will hire an extra person or two (as insurance against no-shows, if nothing else) with lower wage rates, but as they go up, you're not going to do it. There are 100s of other businesses that are precisely the same. You absolutely know nothing about this subject and your posts prove it beyond any doubt.