follow jazz_music following
follow jazz_music 2017 Nov 28, 6:21pm
470 views 12 comments
Two studies inform the discussion: One is not even new. Economists David Card and Alan Krueger began studying what happens to the labor market when individual states raise the minimum wage twenty years ago. "Until the Card-Krueger study, most economists, myself included, assumed that raising the minimum wage would have a clear negative effect on employment," Krugman confesses. "But they found, if anything, a positive effect. Their result has since been confirmed using data from many episodes. There’s just no evidence that raising the minimum wage costs jobs, at least when the starting point is as low as it is in modern America."To Krugman, and other reasonable people, this indicates that the labor market does not perform like every other market, primarily because workers are people. They do a better job when treated well, have better morale and more productivity. That is good for business! By way of example, look at the Walmart model of high turnover and terrible morale versus that of Costco.In fact, Krugman suggests, increasing wages as a way to improve business outcomes is not limited to the meagerly paid minimum wage labor force.
If there are NO ill effects, then let's make it a million dollars an hour! We'll all be rich!!!
70 years of policy was studied and that's your conclusion.
What happened, did you miss all of these?
This is almost as if you were making a point here.70 years of policy was studied and that's your conclusion. Good to know.