Studies show that increasing the wage for fast food employees wouldn't hurt the industry.

what do the studies say about systematic inflation's effect on the country?

1. Thats bullshit. Artificially increasing the wages in the fast food industry would be very expensive and the average profit margin is quite low. Where businesses aren't closed or prevented from being opened, the costs would be passed on.
Studies also show the elasticity of demand for fast food is very high. Customers are very price sensitive and it would cost them a lot of business.



Fewer jobs and Higher food prices created by government intervention? Thats ok by you right?

2. Studies show that raising the minimum wage to 10.10 could cost about half a million jobs.

This post was edited by cambovenzi on Jan 27 2015 04:10pm

heritage foundation

must be legit

Ehm, even though it is Heritage foundation...

Are you not seeing the implications? Raising minimum wage for all would mean competition would stay the same.

Meanwhile fast food workers would have their wages doubled and the prices only increase 30%. Think about all that purchasing power you created by measures like this. These people get double the money. And in all likelihood those people are going to spend that money too.

Sorry but actual economists including plenty with Nobel prizes disagree and have urged the united States to raise the minimum wage. Plenty of studies have been done showing it actually has no effect on employment numbers for reasonable increases. Reasonable actually goes up past ten dollars which is still lower than it has been in the past adjusted for inflation

This is false. Minimum wage hikes hurt some businesses more than others, and as studies have shown it has a negative effect on net employment.

As I mentioned with the elasticity problem, people will not be as likely to buy something if it costs more.
If they do buy something that costs more, it has negatively effected their lives compared to the alternative of it costing less.




I could also pay people to dig holes and think of that purchasing power too.
In actuality its terrible economics. The money has to be taken from somewhere.

Its important to look at the whole picture. Not just the ones receiving a pay raise.
Consumers, employers, and would-be employees that miss out on a job opportunity all lose out in this equation.

Heritage is a koch funded think tank paid to help koch industries, not push any freedom agenda. They're good at convincing guillable saps though

Ad hominem. This post embodies it to a tee.

Yeah, when my research advisor tells me to get a paper from a journal with zero impact factor that was founded and funded by a liberal think tank out of his office, that's not ad hominem, its a reasonable assessment of reliability. Nobody actually interested in the truth has time to Wade through crap endlessly. Best to recognize an obvious conflict of interest and corruption and move on.

Go to a serious economics school and cite Heritage. You will be laughed out of the building and given instruction on how to find a reliable source. The fact that the only ones who repeat these results are right wing funded think tanks should tell you something. It takes a right wing funding source pulling the strings to come up with right wing conclusions.

This post was edited by Thor123422 on Jan 27 2015 05:06pm