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Not a good day for Albuquerque - 1370°C

Oct. 5th, 2005

08:28 am - Not a good day for Albuquerque

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Date:October 6th, 2005 09:32 am (UTC)
P = NX/Y assumes an unsupportable ceteris paribus clause. Most minimum wage employees are employed by massive corporations. (Most small business do much better by their employees.) In an era in which CEOs and the top echelons of most major corporations are being paid orders of magnitude more than they are worth, there is enough elasticity in the system that a small contraction in exuctive pay could cover what is really a minor wage increase for the worst off.

There are plenty of other sources of elasticity. Plus, a minimum wage increase puts more money in the hands of people who need to spent it, which means a lot more money into the market, instead of piling up in executive portfolios. This creates lots of jobs and leads to a generally healthier economy. We can see this happen, as ad_radian notes, below. Minimum wage increases drive people off of welfare roles.
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