Saturday, June 24, 2017

Riasing the minimum wage does not hurt business

"One common critique of higher minimum wages is that they also raise the cost of living. But last year, an initial study from the University of Washington found that retailers, despite having to pay their workers more, weren’t raising prices. Another is that higher pay will lead to fewer shifts and fewer jobs. And while those same UW researchers are analyzing the data, other researchers at UC Berkeley’s Institute for Research on Labor and Employment (IRLE) used an innovative model to prove that the city’s increased minimum wage has had no negative effect on job availability."

Still more examples and research needed, but things are looking good so far.

My limited understanding of economic theory is that  money is like blood in an animal. It has to circulate to work.  And I would think that if people had more money in their pocket, money would circulate through an economy better.  No?