Originally Posted by bluewolf
How is everyone suddenly going to get re employed if all these businesses are shutting down? And they are shutting down because someone has decided that if they don't pay an arbitrarily high wage they must not be "sustainable"?
Perhaps these unemployed workers will be told "tough, but at least we've decided our principles have held up"?
If you read back in the discussion, that is covered (I've actually repeated this dozens of times thus far, my last post is the first not to disclaimerize with it) there are no stats showing a medium-to-long term rise in unemployment, which means so long as low-skill unemployment is low (and subsequently there is employer-demand for workers at that level), people appear to get reemployed.
I'm not surprised Permabear/Valmont opportunistically jump in on this all of a sudden, despite having been active in the thread before now, conveniently forgetting this has been the condition on all
of my posts thus far.
If the workers get reemployed (and the stats don't seem to show an increase in medium-to-long term unemployment, meaning they don't seem to contradict this), then workers getting wages meeting the minimum cost of living, is worth the cost of a few then-unprofitable business's shutting down in the transition period (again, unfortunate, but that's just tough), instead of underpaying workers.
Workers can meet a minimum standard of living, a few not-so-profitable business's shut down, with market share getting redistributed and workers getting reemployed (without stats showing a medium-to-long term rise in unemployment); pretty much a net-benefit for the workers and the countries living standards.
The time minimum wage is likely more harmful (and these are not the conditions on my above points), is when unemployment is higher and worker-demand from employers is low (like now); at that time, minimum wage should be reduced, but I'm not set on what the best overall policy is.
For instance, a lot of people are in debt right now, if the minimum wage was taken out completely at the moment, you'd likely see a lot more debt defaults, which will fast do a lot more harm to the economy if people are defaulting on large mortgages.
For me, minimum wage in the good times seems to have an overwhelming benefit vs cost (and arguments against this condition have been weak thus far), but in bad times managing it is more tricky/complicated, so I'm less certain what is best then.