Machines will replace labor regardless of the minimum wage. If you want a consumer driven economy to prosper, you have to get money into the hands of the people most likely to spend it no matter whether they deserve it or not. If you want to balance the governments budgets, then you have to get more taxable income to the most people possible. There are far more middle class than wealthy so taxing wealthy people really doesnt help as much as getting more taxable wages into the hands of the middle and lower classes. The reason that higher minimum wages wont cause unemployment is because more money in the hands of people that dont have much will be spent very quickly to purchase goods and services. Many business will have to hire new employees to cope with new demand. Hiring choices are almost alway based on the demand side of the business. If I have more demands for my product, I have to hire more people to meet them or invest in technology which is created by people. So you see higher wages will ultimately cause more demand and a decrease in unemployment. They will also cause an increase in the tax base to local and federal government and could even result in lower taxes for both the wealthy and everyone else as the need for social service would be decreased and the tax base increase.
Posted on: Wed, 29 Jan 2014 13:32:06 +0000
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