Great post, thanks. I suggest replacing the animated gifs with normal images, they are very distracting. I know the gifs are some sort of branding / product differentiation thing for the newsletter, but there have to be better ways... just a suggestion!
Very well written. Thank you. I do understand this argument. What I still do not understand is what other ways can we ensure low income workers receive a wage sufficient to have food, shelter, and healthcare? It seems like “the market” has never made this happen. So what is the companion though about paying a living wage that goes with “minimum wage bad for everyone”? Thanks!
I'm not sure I would say that the minimum wage is bad for everyone. I'm just trying to get across the idea that it is often not as simple as a redistribution from firms to workers and that there are often "unseen" costs. In fact, despite these costs, I think that many people could read my post and still think that the benefits are worth the costs. Nonetheless, if what we want is a transfer to low-wage workers, one alternative is to pay a wage subsidy. This makes what the policy is doing explicit. The government uses tax revenue to subsidize the wages of low-wage workers. We currently do something like this in the U.S. with the Earned Income Tax Credit.
First.. sorry about the mischaracterization of your position. Second: wage subsidies! Great idea. I’m off to fire off notes to my two (D) Senators. Thanks for the insights.
There is another way of looking at the question, "Who pays for the Minimum wage?" and that is Who Benefits from the Minimum Wage?" The answer is not only the lowest-paid but..., Individual companies on their own do not. En masse they all do. Poor people spend all their income. This income is spent locally so the local economy benefits. So firms in the local economy benefit. There is also another group that benefits. Surprisingly shareholders and the wealthy benefit. Shareholders because a uniform minimum wage increases the spending power of people who buy goods and services. Wealthy people benefit because wealth accumulates. If wealthy people want to increase their wealth, they have to increase the spending power of the poor.
Great post, thanks. I suggest replacing the animated gifs with normal images, they are very distracting. I know the gifs are some sort of branding / product differentiation thing for the newsletter, but there have to be better ways... just a suggestion!
I understand. My wife agrees. But they are definitely our most popular feature. They get more comments than the actual content!
Hah.. ah well. Keep up the good work :)
Very well written. Thank you. I do understand this argument. What I still do not understand is what other ways can we ensure low income workers receive a wage sufficient to have food, shelter, and healthcare? It seems like “the market” has never made this happen. So what is the companion though about paying a living wage that goes with “minimum wage bad for everyone”? Thanks!
I'm not sure I would say that the minimum wage is bad for everyone. I'm just trying to get across the idea that it is often not as simple as a redistribution from firms to workers and that there are often "unseen" costs. In fact, despite these costs, I think that many people could read my post and still think that the benefits are worth the costs. Nonetheless, if what we want is a transfer to low-wage workers, one alternative is to pay a wage subsidy. This makes what the policy is doing explicit. The government uses tax revenue to subsidize the wages of low-wage workers. We currently do something like this in the U.S. with the Earned Income Tax Credit.
First.. sorry about the mischaracterization of your position. Second: wage subsidies! Great idea. I’m off to fire off notes to my two (D) Senators. Thanks for the insights.
There is another way of looking at the question, "Who pays for the Minimum wage?" and that is Who Benefits from the Minimum Wage?" The answer is not only the lowest-paid but..., Individual companies on their own do not. En masse they all do. Poor people spend all their income. This income is spent locally so the local economy benefits. So firms in the local economy benefit. There is also another group that benefits. Surprisingly shareholders and the wealthy benefit. Shareholders because a uniform minimum wage increases the spending power of people who buy goods and services. Wealthy people benefit because wealth accumulates. If wealthy people want to increase their wealth, they have to increase the spending power of the poor.
I like to think I am pretty good at economics, but every time I read your blog I learn something new
Thanks!