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The war over the minimum wage (theguardian.com)
6 points by kawera 8 months ago | hide | past | web | favorite | 6 comments

I think continuing to prop up the 19th century idea of a minimum wage is foolish - it distorts the labor market, and reduces labor mobility. If we want to do something for the future, replace minimum wage with a minimum income scheme, and let the market decide. I strongly suspect you'd see higher labor participation and higher wages overall a decade after implementation.

We're looking ahead to an era where full employment may not be a possibility - we should get ahead of it, rather than waiting for doomsday. But for right now, anything that increases labor mobility would be a net economic benefit.

Citing the Berkeley study

Berkeley had to cut 500 jobs themselves after, among other things, the $15 min wage raise


> No idea in economics provokes more furious argument than the minimum wage.

Someone hasn't argued about the gender wage gap recently.

Yikes. What a minefield that is. God help you if you dare to tread there. No amount of facts or rational evidence will save you from the zealots.

The minimum wage seems like an issue that is kept alive so that politicians have something convenient to run on. The rhetoric is already written, the battle lines drawn. If they actually cared more about the wage than the convenient wedge, they would tie the minimum wage to a cost of living indicator so it wouldn't need to be a crisis every election season. This would leave them free to argue over percentage of cost of living, but clearly, brinksmanship is a feature in their minds.

The evidence is overwhelming that labor markets are monopsonistic, meaning that wages are almost always below what a competitive market would produce. Minimum wages work as advertised.

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