Quote:
Originally Posted by rubecube
In a vacuum no, but the basic argument is that a higher minimum wage is going to increase the amount of customers demanding his product, which in turn is going to necessitate him to hire another employee and keep up with the demand. I'm pretty sure most of the literature out on this subject indicates that after an initial adjustment period, that employment rates tend to stabilize, return, and sometimes raise to what they were prior to the minimum wage hike.
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Unless a worker is laid off to counter the raise, because the salary budget is set. Jim's Hardware isn't going to bleed until the economic experiment cycles through the system in the hope that the extra $5 an hour out there comes to his business.
On this scale, it's a loss for employment.
The problem with "the literature" is that it's theory. There's one place this has been implemented so far, and we're still not sure of the results.