Bryce, great video. It is amazing how often the basic economic concept of Supply and Demand is overlooked with regard to labor.
In 10 years of HR, I can guarantee that my experiences have shown minimum wage increases hurting people far more than helping, especially younger worker in entry-level jobs.
I think this report captured the gist of most debate in this country. One side speaks in terms of social justice while the other speaks in terms of economics.
In this particular case, I think Anne has it dead right (and that's a relative rarity in itself). During normal times the minimum wage is non-binding for most, but it does create a shortage of opportunity for those looking to enter the market in that wage range. In the midst of a recession the negative effects of a price floor widen the gap between supply and demand, increasing unemployment and negatively impacting those which are supposed to be helped most. The law of unintended consequences will get you every chance it can.
2 comments:
Bryce, great video. It is amazing how often the basic economic concept of Supply and Demand is overlooked with regard to labor.
In 10 years of HR, I can guarantee that my experiences have shown minimum wage increases hurting people far more than helping, especially younger worker in entry-level jobs.
Thanks for posting this video.
I think this report captured the gist of most debate in this country. One side speaks in terms of social justice while the other speaks in terms of economics.
In this particular case, I think Anne has it dead right (and that's a relative rarity in itself). During normal times the minimum wage is non-binding for most, but it does create a shortage of opportunity for those looking to enter the market in that wage range. In the midst of a recession the negative effects of a price floor widen the gap between supply and demand, increasing unemployment and negatively impacting those which are supposed to be helped most. The law of unintended consequences will get you every chance it can.
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