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View Diary: Apologies to DailyKos and to Senator Reid (282 comments)

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  •  I think it is less (0+ / 0-)

    That government regulation of labor markets lowers wages, but that it lowers overall employment.  I.e. the idea is that an arbitrary price floor will mean that there is more demand for jobs at that wage then there is supply of those jobs.

    Imagine a supply-demand curve - the point in the middle where they meet is the "natural" price for wages - if the price floor is higher than there, then you'll have a gap between supply and demand and an employment shortage.

    That's the argument, at least. I rec'd your comment above because of the spirit, but someone could easily make the argument that the 5.15 minimum wage causes less of an employment gap than a 7 dollar one.

    **Disclaimer: I do think we should raise the minimum wage, as well, as I just believe these arguments are not as important as social equality, in the real world.

    •  Well, lowering employment will also, in theory, (0+ / 0-)

      lead to lower wages because there will be lower productivity, mroe inefficiency, yada yada yada.

      Of course, the real reason they voted against the hike but also against the abolition is pure political calculation--I doubt they had their charts out.

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