Skip to main content

View Diary: The minimum wage is lower right across the street, but this McDonald's is staying put (70 comments)

Comment Preferences

  •  Shouldn't that effect been seen in 16 years (1+ / 0-)
    Recommended by:

    of data?

    How long is needed for this to be seen?

    •  This data does not cover the entire economy (4+ / 0-)

      of the area.  The data covers the two McDonalds.  So, in no way does this data refute that raising the minimum wage increases employment.

      When the minimum wage is raised, the workers have more money to spend.  Generally when more money is spent, the economy benefits.

      You rarely find a story that says two stoners beat each other up outside of a bar.

      by jparnell on Thu May 09, 2013 at 02:30:02 PM PDT

      [ Parent ]

      •  There were 2 McDonalds in (0+ / 0-)
        316 pairs of border counties

        somehow that doesn't ring true.

        To the bigger point of there being more disposable income available when the minimum wage is raised, this (e.g., McDonalds-type restaurants) in fact is almost exactly where one would predict it would be spent.  So why didn't employment rise?

        Well, maybe there and at Walmart.  

    •  This data set only refers to restaurant employment (5+ / 0-)
      ...looked at 16 years worth of restaurant employment data for 316 pairs of border counties.
      How many jobs in other fields are the higher paid restaurant employees creating with more disposable* income? They aren't spending all that cash on restaurants (one can only eat so much), so the increase in that field would be negligable. How many are buying their kids new clothes rather than just make do with what they have? How many are finally able to get a TV, or go out to a movie/play/whathaveyou?

      How many other fields (and which ones) are benefiting from this cash is the real question. J. M. Keynes's conclusions were that money rolls around a community, from one buyer to a seller, who then becomes the next buyer and so on. That worked pretty well to build up a middle-class in this country. Do you have any reason to believe that these underlying principles have changed?

      *"disposable" is a relative term; for those merely scraping by, no income is disposable, even though it gets spent.

      PrezObama's only mistake in the sequester is that he assumed that the Republicans would be more loyal to their oath of office to serve the people than their oath to Norquist to never close tax loopholes.

      by SilentBrook on Thu May 09, 2013 at 02:39:08 PM PDT

      [ Parent ]

      •  Well, OK - but with that caveat (0+ / 0-)

        (i.e., that the employment effects were only evaluated in the restaurant sector) - the implications of the study are highly diminished.  That is, they offer absolutely no insights into the effects of minimum wage laws on overall, economy-wide employment prospects.

        •  No, the studies are quite clear. (0+ / 0-)

          Look, I read the NYT, in particular the business section, and especially the business columnists.

          The GOP always claims higher wages will hurt business and economies and in fact the opposite is true. It turns out that when workers make more money, they spend more, and (as Terry Pratchett has written) money is like manure: when you spread it around, everyone benefits.

          So what we've seen over the past twenty years is that areas with higher minimum wages have more dynamic economies and LOWER unemployment.

          You can look it up.

          Irony takes a worse beating from Republicans than Wile E. Coyote does from Acme. --Tara the Antisocial Social Worker

          by Youffraita on Thu May 09, 2013 at 11:14:34 PM PDT

          [ Parent ]

    •  No, (0+ / 0-)

      because as Sparhawk pointed out above, that benefit is distributed throughout the market on both sides of the border.

      What are you doing to fight the dangerous and counterproductive error of treating dirtbag terrorist criminals as though they were comic book supervillains? I can't believe we still have to argue this shit, let alone on Daily Kos.

      by happymisanthropy on Thu May 09, 2013 at 07:50:26 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site