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Re: Study: The 2007 minimum wage hike cost more than 1 million jobs during the recess
But if the things they are buying cost as much or more then the added money in their pockets, they save nothing. I have explained this several times in other threads.
If you are seriously going to argue that inefficiency is the way to economic prosperity, then, with respect, I strongly think you should rethink your position.
Anyway, if you have a problem with what I am saying, I suggest you take it up with those that wrote the CBO report...they can probably explain it better (or at least, use much bigger words) then I can.
When people have more money in their pockets, they spend and save more, and demand increases. When companies have an increase in realized demand, they produce more, and thus they hire more people, and create more wealth. The cost for higher wages is paid for out of the additional wealth creation, it costs the consumer nothing, and it costs the business owner nothing.
But if the things they are buying cost as much or more then the added money in their pockets, they save nothing. I have explained this several times in other threads.
If you are seriously going to argue that inefficiency is the way to economic prosperity, then, with respect, I strongly think you should rethink your position.
Anyway, if you have a problem with what I am saying, I suggest you take it up with those that wrote the CBO report...they can probably explain it better (or at least, use much bigger words) then I can.