Wage laws

[OohPooPahDoo]

What I do know is that price floors lead to "dead weight loss" and there isn't a single economist that would say otherwise.

Your simplistic analysis requires that everyone making less than the new price floor when the minimum wage is hiked up lose their jobs. In reality that's simply not true...

employers who employ minimum wage labor to raise prices to account for the change in the wage - and in many cases - they are successful...

minimum prices of commodities, including minimum prices-on-labor ([minimum] wages), statistically tend to reduce consumption of those commodities, including consumption of labor (jobs); and tend to be "passed on", down the supply "chain", to "downstream" consumers, e.g. "end consumers" of the "ultimate final product".

They statistically lead to it? Great, show us the statistics.

ergo, minimum prices/wages "trickle down" to the rest of the economy as a whole -- precisely as stated, every commodity, from "hamburgers" to "toothpaste", would (tend to) cost (at least a little) less, without (artificially imposed) minimum prices/wages

Yes - deflation is a likely result. We'd like to avoid that.

 

[ThinkCritically]

Einstein wrote quite a bit about thought experiments, himself, but general relativity wasn't accepted as a good theory until it was verified by experiment in the real world.

Comparing Einstein with Adams is a bit like comparing apples and oranges, or to be a little more explicit comparing the Natural Sciences (Einstein), with the Social Sciences (Adams) is not possible. I don't want to get to side tracked but the differences are very important to note.

TheDifferencesBetweenPhysicalScience&SocialScience

 

[ThinkCritically]

When you're ready for your approach to apply to the real world - give us the data.

Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research

 

[OohPooPahDoo]

Einstein wrote quite a bit about thought experiments, himself, but general relativity wasn't accepted as a good theory until it was verified by experiment in the real world.

Comparing Einstein with Adams is a bit like comparing apples and oranges, or to be a little more explicit comparing the Natural Sciences (Einstein), with the Social Sciences (Adams) is not possible. I don't want to get to side tracked but the differences are very important to note.

TheDifferencesBetweenPhysicalScience&SocialScience

You've already told us you think social science has absolutely no observational basis (you happen to be wrong) - and then you proceed as if social science (economics in this case) is useful.

 

[OohPooPahDoo]

When you're ready for your approach to apply to the real world - give us the data.

Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research

So how many people lost their jobs because of the wage hike under Clinton?

 

[Widdekind]

show us the statistics.

you yourself stated, as "common knowledge", that lower-cost labor would (tend to) lower the cost of products, e.g. "fast food hamburgers"

ergo, minimum prices/wages "trickle down" to the rest of the economy as a whole -- precisely as stated, every commodity, from "hamburgers" to "toothpaste", would (tend to) cost (at least a little) less, without (artificially imposed) minimum prices/wages

Yes - deflation is a likely result. We'd like to avoid that

you yourself are stating, that "inflation", i.e. "higher prices", is desirable?

 

[Widdekind]

Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research

"...negative employment effects of minimum wages... negative employment effects, both for the United States as well as for many other countries... studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups."

 

[ThinkCritically]

Einstein wrote quite a bit about thought experiments, himself, but general relativity wasn't accepted as a good theory until it was verified by experiment in the real world.

Comparing Einstein with Adams is a bit like comparing apples and oranges, or to be a little more explicit comparing the Natural Sciences (Einstein), with the Social Sciences (Adams) is not possible. I don't want to get to side tracked but the differences are very important to note.

TheDifferencesBetweenPhysicalScience&SocialScience

You've already told us you think social science has absolutely no observational basis (you happen to be wrong) - and then you proceed as if social science (economics in this case) is useful.

Please quote to me where I said any of that?

 

[ThinkCritically]

When you're ready for your approach to apply to the real world - give us the data.

Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research

So how many people lost their jobs because of the wage hike under Clinton?

Oh you mean when the market was experiencing irrational exuberance. Its easy to raise the minimum wage when the market is booming and say "hey everybody higher minimum wage leads to a good economy" Correlation does not prove causation.

 

[starcraftzzz]

Really so you think an apple is the same thing as human being....
Yes that does sound incredibly stupid.

you can attempt to follow or you can get sarcastic that is your choice...

Na I'm just shocked that you are stupid enough to think labor/humans are the same as goods.

The thing about your point is that all the evidence contradicts it.
I have a hypothesis about how minimum wage helps the economy you have one about how it hurts the economy; both are logically sound; the only difference is that in reality my hypothesis is the one that plays out.

I never mentioned anything about the macro economy in any of my posts. I am simple making a statement about cause and effect in regards to setting price floors in the labor market. Maybe it does help the macro economy, I never said it didn't. But what I am saying is that minimum wage benefits comes at the expense of the poorest of the poor. [/quote]
You said that unemployment hurts the economy/people. Of which the eviednce contradicts what you said

 

[ThinkCritically]

Hey you misquoted yourself that last post.....that last paragraph was me.....