Comments on: More on the Minimum-Wage http://cafehayek.com/2007/01/more_on_the_min.html where orders emerge Mon, 16 Jan 2012 02:06:33 +0000 hourly 1 http://wordpress.org/?v= By: Tramadol. http://cafehayek.com/2007/01/more_on_the_min.html/comment-page-1#comment-55701 Tramadol. Thu, 13 Aug 2009 05:39:05 +0000 http://localhost/wordpress/?p=4038#comment-55701 <strong>Tramadol....</strong> Cheap tramadol.... Tramadol….

Cheap tramadol….

]]> By: Clarissa Zamora http://cafehayek.com/2007/01/more_on_the_min.html/comment-page-1#comment-9156 Clarissa Zamora Sat, 15 Dec 2007 23:17:54 +0000 http://localhost/wordpress/?p=4038#comment-9156 <p>mislight arctogaeal lasa abbasi iranist pedelion auxiliation quauk<br /> <a href="http://www.actschiro.com/main.html" rel="nofollow">ACTS Chiropractic</a><br /> http://www.kubicki.com/ <br /> </p> mislight arctogaeal lasa abbasi iranist pedelion auxiliation quauk
ACTS Chiropractic
http://www.kubicki.com/

]]> By: Globalized DOA http://cafehayek.com/2007/01/more_on_the_min.html/comment-page-1#comment-9157 Globalized DOA Wed, 12 Sep 2007 23:57:26 +0000 http://localhost/wordpress/?p=4038#comment-9157 <p>It seems reasonable then based on the many arguments against a minimum wage hike that we should actually look at lowering the minimum wage. This would actually increase the amount of people in the work force and thus benefit everyone.</p> It seems reasonable then based on the many arguments against a minimum wage hike that we should actually look at lowering the minimum wage. This would actually increase the amount of people in the work force and thus benefit everyone.

]]> By: Russell Nelson http://cafehayek.com/2007/01/more_on_the_min.html/comment-page-1#comment-9158 Russell Nelson Tue, 09 Jan 2007 03:33:27 +0000 http://localhost/wordpress/?p=4038#comment-9158 <p>I don't see why Half Sigma gets so much currency on this blog. Just because he can use economic terms correctly doesn't mean that his combination of economic terms is correct. He doesn't ever think like an economist, and it shows in his argumentation. For example, he claims in a comment here that productivity doesn't matter -- and yet it is the ONLY thing that matters. Employees don't get paid for showing up. They get paid for doing the things that caused the employer to hire them. Anything else is charity on the part of the employer.<br /> </p> I don't see why Half Sigma gets so much currency on this blog. Just because he can use economic terms correctly doesn't mean that his combination of economic terms is correct. He doesn't ever think like an economist, and it shows in his argumentation. For example, he claims in a comment here that productivity doesn't matter — and yet it is the ONLY thing that matters. Employees don't get paid for showing up. They get paid for doing the things that caused the employer to hire them. Anything else is charity on the part of the employer.

]]> By: Bill Woolsey http://cafehayek.com/2007/01/more_on_the_min.html/comment-page-1#comment-9159 Bill Woolsey Sat, 06 Jan 2007 21:31:31 +0000 http://localhost/wordpress/?p=4038#comment-9159 <p>Perfectly inelastic demand is inconsistent with the "law of demand." That is, a "downward sloping" demand curve. Perfectly inelastic demand means that changes in price have no impact on quantity demanded. It is only _perfectly_ inelastic demand for labor that allows an increase in the minimum wage to have no impact on employment.</p> <p>Inelastic demand means that the change in quantity demanded is less than proportional to the change in price. If the demand for unskilled labor is inelastic, then an increase in the minimum wage will result in a less than proportional decrease in employment. For example, a 10% increase in the minimum wage might lead to a 2% decrease in employment. That _is_ inelastic demand. </p> <p>Unit elastic means that the change in quantity demanded is proportional to the change in price. And _elastic_ means the change in quantity demanded is more than proportional to the change in price.</p> <p>The less inelastic and the more elastic is the demand for unskilled labor, the greater the reduction of employment due to an increase in the minimum wage. But unless the demand for unskilled labor is "perfectly inelastic" then there is at least some decrease in employment.</p> <p>Anyway, suppose the equilibrium wage has increased above the current minimum. Employers are having difficulty finding employees. And they are raising wages here and there to solve their problems. The minimum wage increases. If the new minimum increases so that it is no greater than the new equilibrium wage, then it would seem likely that the increase in the minium wage brings the market to equilibrium and increases employment.</p> <p>I oppose the existence of the minimum wage. But I can imagine scenarios where an increase in the minimum wage would increase employment. Disequilibrium scenarios. The larger the increase in the minimum, the less plausible such scenarios. And I don't think it is a good reason to raise the minimum wage. </p> <p>I think it is a good thing to have the labor market be a sellers' market.</p> Perfectly inelastic demand is inconsistent with the "law of demand." That is, a "downward sloping" demand curve. Perfectly inelastic demand means that changes in price have no impact on quantity demanded. It is only _perfectly_ inelastic demand for labor that allows an increase in the minimum wage to have no impact on employment.

Inelastic demand means that the change in quantity demanded is less than proportional to the change in price. If the demand for unskilled labor is inelastic, then an increase in the minimum wage will result in a less than proportional decrease in employment. For example, a 10% increase in the minimum wage might lead to a 2% decrease in employment. That _is_ inelastic demand.

Unit elastic means that the change in quantity demanded is proportional to the change in price. And _elastic_ means the change in quantity demanded is more than proportional to the change in price.

The less inelastic and the more elastic is the demand for unskilled labor, the greater the reduction of employment due to an increase in the minimum wage. But unless the demand for unskilled labor is "perfectly inelastic" then there is at least some decrease in employment.

Anyway, suppose the equilibrium wage has increased above the current minimum. Employers are having difficulty finding employees. And they are raising wages here and there to solve their problems. The minimum wage increases. If the new minimum increases so that it is no greater than the new equilibrium wage, then it would seem likely that the increase in the minium wage brings the market to equilibrium and increases employment.

I oppose the existence of the minimum wage. But I can imagine scenarios where an increase in the minimum wage would increase employment. Disequilibrium scenarios. The larger the increase in the minimum, the less plausible such scenarios. And I don't think it is a good reason to raise the minimum wage.

I think it is a good thing to have the labor market be a sellers' market.

]]>