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

To: combjelly who wrote (890667)	9/30/2015 11:49:21 AM
From: i-node	Respond to of 1575187

It is not as simple as you are painting it. One factor you are ignoring is that the bulk of the customers for fast food, for example, are going to be making more money themselves. Only to the extent of any inflation (some of which definitely results from a minimum wage increase). These are not people that buy fast food, with an average McDs combo costing a full hour's work, 1/8 of their work day. These people are bringing sack lunches. CBO estimated that with an increase to 10.10 2.7 Million people would be making more money -- although some only a very small amount more. Obviously, if you go to $15 more people are affected, but there are places where $15 is out of the question, and that probably includes most rural areas and most of the Midwest. And they will still be in the group that saves very little, so any increase in income will get spent, sooner or later. This is why well controlled studies show little or no effect on employment with rises in minimum wage. You made two statements in the paragraph above and there is no nexus, whatsoever. And while it is true they'll spend the money sooner or later, studies don't show "little or no effect on employment" and if they did it would have nothing to do with workers spending their money. The reality is that studies pretty consistently find low-skilled workers and black teenagers are among the hardest hit by minimum wages. One could not seriously look at the literature on this subject and miss this fact. I grant you that before the 1980s, the idea that raising minimum wage had an impact on employment was gospel for economists. But that has since changed with newer, better designed studies. Studies of this subject have been better designed only in that they're out of places like Berkeley and Harvard which have established histories of performing structurally deficient studies with predetermined outcomes. You see what you want to see, not the facts.