OohPooPahDoo
Gold Member
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".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...
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.