Ancestors

Toot

Written by Jonathan Kamens on 2025-01-21 at 10:12

"Raising the minimum wage reduces employment" is wrong for the same reason "Raising taxes on the rich reduces employment" is wrong.

Both assume that we live in a perfect capitalist system without friction or corruption, where thanks to the invisible hand of the market owners of the means of production can only extract as much capital as the markets will bear.

It should be obvious that's poppycock to anyone with a brain.

[#]capitalism #economics #EatTheRich

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Descendants

Written by Sly Gryphon on 2025-01-22 at 02:25

@jik although clearly at some point raising the minimum is going to fail, otherwise why not make it $500 / hour and we would all be rich?

What about $50 / hour? Do you think that would work?

Corruption and friction may be a problem, but they don't negate the underlying relationship that a price floor above the market will reduce volume compared to what it otherwise would have been.

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Written by Jonathan Kamens on 2025-01-22 at 02:50

@sgryphon "Well, actually" guy has entered the chat.

👋 plonk

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