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.
|
Sorry?
How the hell does increasing his costs increase customer demand.
Jim has a hardware store. He sells hardware. He competes against Home Depot, Canadian Tire, Lowe's, Rona.
He doesn't have the purchasing power to not pass through increased costs to customers, therefore he can't compete and there is no normalization.