Hat tip Campus Reform
I'll be the first one to admit it, but economics is not my strong suit. That's why they hire other guys to teach it. This latest piece from Campus Reform leaves me confused. It concerns a UCI economics professor who argues against the old adage that you lose jobs by raising minimum wages.
http://www.campusreform.org/?ID=7110
Hey, Professor Neumark: What about the effect on the cost of anteaters if you raise minimum wage?
The notion that we lose jobs by raising the minimum wage rests on the faulty assumption that employers hire as a public service. Employers hire if, and only if, adding another employee will increase revenue by increased sale of goods and services. So, if McDonald's is going to lose customers by not serving up those burgers fast enough, they hire another employee, even if it means paying $15 an hour. On the other hand, if they current number of employees can handle the workload, they don't hire another, even if they can pay $8 an hour. Case closed.
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