Tuesday, September 28, 2004

Just a thought

So, I've been thinking almost constantly about the minimum wage lately. We're told that raising the minimum wage will result in increased unemployment. Isn't it valid to think about the effects of change in wages in terms of labor hours demanded. Isn't it valid to argue that an increased minimum wage will result in higher wages and overall gains for laborers coupled with a small loss in hours. My experience is that employers don't like to fire people and would much prefer to lower everyone's hours by a small amount. And knowing that the demand for low-wage labor is relatively inelastic, the lost hours would be fairly small and the overall gains for workers would be huge. Maybe I'm just goofy on this. I don't know. It's something to think about.

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