Dragon
Senior Member
- Sep 16, 2011
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Before the consumer does any consuming, he has to get his money from somewhere.
Not in dispute. But the fact remains that the more money he gets, the more jobs will be created.
(By the way, take it back to the origins of industry, and you're wrong; most people in those days didn't have "jobs." They had land which they worked as small farmers, or they had small craft businesses of their own.)
High wages create jobs. This is one of those points where supply-side and demand-side theory part company. Supply-side theory would champion LOW wages so as to reduce the COST of hiring. Demand-side theory would champion HIGH wages so as to increase the INCENTIVE of hiring (by increasing consumer demand).
A little reflection should show which is right. If there is no (or inadequate) incentive to hire, reducing the cost of hiring will not promote employment. A business does not choose to waste money just because the amount of money to be wasted is lowered.