Re:Uber will charge significantly more per trip as new Seatt...
by throwaway3699 on Thursday December 31, 2020 @08:15AM
(#25592339)
There's plenty of evidence. This is pretty much Econ 101.
The minimum wage is basically a price control on the minimum cost of 1 unit of labour.
If you increase the minimum wage, you're not increasing the value of the economy (which is what leads to the pie growing), but you force employers to spend more on the same thing. The pie is the same size but more money is going to minimum wage workers.
The end result is inflation. People are not earning more, they are just getting a higher number every month.
That being said, I do ack my own bias here, and I get there's reasonable arguments from both directions, all I can say is that it's my gut feeling based on experience:
The minimum wage is basically a price control on the minimum cost of 1 unit of labour.
If you increase the minimum wage, you're not increasing the value of the economy (which is what leads to the pie growing), but you force employers to spend more on the same thing. The pie is the same size but more money is going to minimum wage workers.
The end result is inflation. People are not earning more, they are just getting a higher number every month.
That being said, I do ack my own bias here, and I get there's reasonable arguments from both directions, all I can say is that it's my gut feeling based on experience:
https://www.investopedia.com/ask/answers/052815/does-raising...