Monday, April 18, 2016

Increasing the minimum-wage

People who want to increase the minimum wage have never taken an economics class. If they had taken in economics class they would realize that if you arbitrarily increased wages not much happens in the long run. In other words, if you increase minimum-wage all the other wages will increase as well. That will then force prices to increase to pay for those wages, and so those making minimum wage will still be at the same purchasing level as they were before the increase was made. Long term nothing much will change. Short-term you will just force a lot of people out of work and reduce the number of jobs in order to pay for the wage increases in the short-term. There is nothing good that comes from increasing the minimum-wage. At best it does nothing at worst it causes a mess in the markets. So, increasing the minimum wage is just a political stunt to get some attention and some votes.

What do you think?