Tuesday, October 23, 2018

Minimum Wage

So a new study on the Seattle minimum wage hikes is out and it shouldn't be much of a surprise to anyone who knows economics. Keep in mind:
  • This hasn't even hiked things as much as it soon will.
  • This has been happening in an area that has had relatively strong growth so this is the "best case scenario.
  • This study also doesn't seem to try to measure the effect upon a low earning worker's cost of living.
  • This is still new, the more time goes on the more businesses will do Net Present Value calculations on automating more and more.
So it's worth taking the time to read for yourself for when you have to debate this issue.

The economists caution the results can’t be generalized because Seattle also experienced a big economic boom in the last five years. A fast-growing economy can better absorb wage increases. But even during a boom time, it seems the policy involves trade-offs. It helps workers stuck in low-wage jobs, while harming workers looking to get their first foothold in the economy.

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