CBD is one of Ace of Spades' cobloggers. Today he takes a close look at the proposals to raise the minimum wage to fifteen dollars.
Increase the cost of one of the inputs of any business, and that business will seek alternatives to that increased cost. We do it on a micro scale every day, so it is a concept that is both intuitive and backed up by data.
But eventually it will reset, when inflation rises and the buying power of the minimum wage reaches equilibrium. But nothing can replace the economic activity that will be lost because of this incredible ignorance of the real world.
Read more
here.
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