Those companies with larger numbers of options for change at the margin will actively reduce their wage costs, partly to reduce costs and partly to reduce exposure to the increasing-cost effects of ongoing political interference.
Besides the possibility of job loses, government unions base their contracts on the minimum wage, which means the government will be spending more tax dollars. Another thing that is not being mentioned is that the companies paying these high wages will adjust their prices higher to offset the new wages, meaning everyone including those making minimum wage will pay more.
Here we worked out the competitive case formally but when we revise it should cite mccloskey https://www.nber.org/papers/w22305
Prof Allen's broadcasts are collected in
https://www.amazon.com/Midnight-Economist-Choices-Prices-Public/dp/0872236994/ref=pd_sbs_1?pd_rd_w=0jc18&pf_rd_p=965b754e-4670-4322-863d-d4929773ec49&pf_rd_r=QMX3685RNK2D4XM45J90&pd_rd_r=090edc1b-9f4c-419f-86ad-a1f36bfc5d71&pd_rd_wg=5rjL2&pd_rd_i=0872236994&psc=1
Thanks for this excellent overview! It's now part of my toolkit on minimum wage. (I found my way here from Don Boudreaux's link.)
I used to tell my children, when we talked about incentives, that this is what a minimum wage often looks like: https://www.forbes.com/sites/edrensi/2018/07/11/mcdonalds-says-goodbye-cashiers-hello-kiosks/
Those companies with larger numbers of options for change at the margin will actively reduce their wage costs, partly to reduce costs and partly to reduce exposure to the increasing-cost effects of ongoing political interference.
Besides the possibility of job loses, government unions base their contracts on the minimum wage, which means the government will be spending more tax dollars. Another thing that is not being mentioned is that the companies paying these high wages will adjust their prices higher to offset the new wages, meaning everyone including those making minimum wage will pay more.