- If I can leave out the number of people that are already unemployed because of it.
- By looking at the aggregate economy. If a bunch of tech companies move in to a state at the same time we raise the minimum wage, we can drown out the unemployment caused from the minimum wage because the jobs created by the tech company (far above minimum wage) will make it appear as though there were not any job losses due to the minimum wage.
- By merely looking at small increases of the minimum wage. If I can just use data that has $.01 increase in minimum wage, I can then claim that minimum wage doesn’t cause unemployment.
Here is my full response to this article claiming that a new analysis debunks the elasticity of minimum wage:
How incredibly misleading.
First, it’s a straw man. No one says that, on net, minimum wage reduces the overall job market. They say that minimum wage will create a loss in jobs. This is completely different. For instance, I live in Tennessee. When Amazon came into Chattanooga and Cleveland areas, there was a huge jump in employment. Imagine now if at the same time we jumped minimum wage up at the same time. There might be a net benefit, but there still might be people losing their jobs. The people that lose their jobs are not likely to get the job at Amazon because Amazon pays higher than minimum wage. That’s who we are saying gets hurt the most in the raising of the minimum wage. So, someone who was stuck going to a terrible school in the area, or lives in a low income neighborhood, would be at a huge disadvantage, but the liberals would be screaming “GLORY GLORY HALLELUJAH!” because they are looking at AGGREGATE numbers. The fact of the matter is this: the economy is dynamic. You can easily mislead people if you include ALL factors in with the minimum wage. So far, most studies that are not methodologically flawed, show that drastic minimum wage increases causes, not just correlates, with higher unemployment figures.
Secondly, this doesn’t take into account the increase in the minimum wage. Economists argue elasticity when it comes to minimum wage. So, an increase in $.50 may not cause a huge increase in unemployment anymore than increasing the pack of gum $.50 would cause a drop in quantity demanded.
Thirdly, and very importantly, this doesn’t take into account people that can’t currently get a job. Imagine minimum wage being $10k an hour. I can easily show you that making it $11k doesn’t cause an increase in unemployment because it doesn’t already taken into account all of the people that are already unemployed because of it. It’s a shell game. If you want true figures, you need to look at those who were fired because their productivity didn’t warrant the wage.
Please people: don’t let your ideology cloud your critical thinking skills.