Tuesday, November 26, 2019

Another failure for libertarian/small government economists

Along with their failed predictions of high inflation due to government spending to help deal with recession, economists on the American Right (and at Catallaxy) have warned about minimum wage increases being a disaster for employment.

Axios says (in a pretty detailed post for that site) that it hasn't happened:
Eighteen states rang in 2019 with minimum wage increases — some that will ultimately rise as high as $15 an hour — and so far, opponents' dire predictions of job losses have not come true. 

What it means: The data paint a clear picture: Higher minimum wage requirements haven't reduced hiring in low-wage industries or overall.
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2 comments:

  1. Not Trampis11:33 am

    I have one word here.
    Monopsony

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  2. GMB4:42 pm

    You are pretty much all over the place on this one. Deficit spending causes economic destruction. We've sure seen plenty of that. Its monetary expansion that causes inflation. But in modern decades the spending growth (from monetary growth) has been soaked up by all these numbers rackets that the finance charlatans have come up with, along with asset inflation. Plus the inflation figures are rigged. So you are a bit confused with your economic theory here.

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