Econ 101 - The Minimum Wage
by Steve?M
I heard an argument yesterday form a Pennsylvania legislator (Cohen, not sure where he is from) that the minimum wage was agood idea because it gave lower income people more money to spend, which they do in-state, and therefore it stimulates the economy.? He claimed this was "proven" in New Jersey.? I played a game in my head to try and come up with how many reasons there were that he was wrong in his logic and in his facts.? I stopped at 22.
Thoughts?
Comments
My first thought? Using Jersey as an example of good economics in any sense is a non-starter! Bua, ha, ha, ha!
There are any number of economic studies of raises in the minimum wage that show losses of employment occur. There are no credible studies to date that prove otherwise. And artificially raising the amount of consumer demand will tend to raise prices (i.e. price inflation). Any more reasons why raising / having a minimum wage is stupid and counterproductive? I'm sure there are a few.
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