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Originally Posted by Jim in CT
Interesting. Then why do liberals deny that increases in minimum wage, reduce the demand for minimum wage workers?
Spence, this is fascinating.
First, regarding immigration, liberals are denying that an influx of cheap supply of an item, will reduce its price.
Second, regarding the potential adverse effects of minimum wage hikes, liberals are denying that when you increase the cost of something, that the demand for that something will decrease.
I'm really, truly learning a lot here. Much of what I was taught about economics, supply & demand, and the elasticity of price, was all wrong. Wow.
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I've never heard anyone claim increased minimum wage decreases demand for those workers.
As for the other. You're trying to apply a very basic theory to a very complex situation with a lot more variables.
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