Monday, July 16, 2012

Raise the minimum wage V


Are there winners for minimum wage law? The answer is not clear but we can see the losers - obviously the consumers who have to pay higher prices for the goods and services produced. The business firms (rhetoric) will claim that at least in the short run they will have lower profits (we know this is not accurate - management always keep the investors happy by doubling up their dividend so in turn they can award themselves bonuses).
We know that the blue collar are the obvious group of losers who have no means of coping with the rising prices due to the fact that their wages do not mimic the rising prices.

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