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Originally Posted by Manx
I addressed this in post #25. There would be many side-effects of raising the minimum wage. One of those side-effects would be more jobs as the people that are presently working more than 1 will no longer need to do so. Ergo, less unemployment, less taxes going to "social programs".
If you shift money to one location, it will come from somewhere else. You imply it will come in the form of more taxes, but that is to ignore the reality of more available jobs. Taxes will go down, prices do not shift much if at all.
A living wage does nothing but shift the burden of financing work from me and you to the corporations that reap the profits from the work.
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Manx -
Every economic model that I have ever seen (that includes hypothetical and real world data) shows the exact opposite of your claim.
Maybe this analogy will clarify my point.
The current price of a can of pop is $0.50.
The current demand for pop is 10 million cans (out of my ass).
Every increase (no matter how small) in price for that one can of pop will cause a decrease in demand (an even greater decrease if there is a substitute).
Now, on the reverse, what happens when the price for the can of pop decreases? Yup, the demand increases. That is why the demand curve slopes down and the supply curve slopes up. At higher prices, the suppliers want to produce more. At lower prices, the suppliers want to produce less and the buyers want to buy more (i.e. scarcity).
Substitue labor for the can of pop because they are the same thing. We are the suppliers and the companies are the buyers.
Now, in the case of labor, do the buyers want to buy more when the price is going up? Nope. They buy less. So, what does that mean that buyers (i.e. companies doing the hiring) do when the price of the product they want (i.e. labor) goes up?
Everything follows this rule. Be it cars, labor, food, etc. (baring substitution)
As much as everyone wants to throw niceties and emotions into an argument like this, it cannot be done.
Wouldn't it be nice if everybody made a lot of money? Of course it would. Is it feasible? Nope.
Labor, as a product of the marketplace, is bound by the rules of the marketplace. You cannot debate using emotions against fact.
If you would like, I can go back and find the models I am referring to. Anybody with even a cursery knowledge of economics should be able to grasp these concepts without the data, but if the data is requested, I will get it and post it (which, would continue this threadjack even more).
I have never, ever, ever, ever, ever, seen any model (or hint of a proposed model) that shows that tax revenue will increase with an increase in the minimum wage or that more jobs will be created because of an increase in the minimum wage.
The supply will increase, but the demand won't.