Here is an idea - lets support abolishing the federal minimum wage. This paper supports the idea that raising the minimum wage actually hurts the poor. It also hurts small communities, but I did not see it in this paper. With increased cost of labor, a business must turn its inventory or services at a faster pace or atleast more frequently to compensate for the increase. This means the economies of scale requirements to make a profit have increased, which favors larger businesses in larger cities. It does not make sense to have a national minimum wage. It will hurt the economy in places like Liberty Hill or Sierra Blanca, TX. As businesses shut down in small towns, costomers are driven to purchase from stores in big cities. faculty.chicagobooth.edu/workshops/econ-policy/PDF/Macurdy%20presentation.pdf
Posted on: Sat, 03 Jan 2015 22:58:54 +0000
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