Link: “Lift the minimum wage and employment still rises? How to anger the establishment and win a Nobel Prize

Original post found at: https://www.abc.net.au/news/2021-10-13/nobel-prize-in-economics-2021-david-card-minimum-wage/100531994

Quite an article. By observing and comparing fast food joints in neighbouring areas in Pennsylvania and New Jersey when the latter increased the minimum wage in the 1990s, two economists found that raising the minimum wage did not increase unemployment – in fact, if anything it did the opposite. In so doing, they incurred the wrath of “mainstream economists” who were incensed to have experimental data disproving their irrationally-held article of faith that higher wages somehow raise unemployment 😆

As an aside, I’ve never understood how economists have ever been able to get away with claiming that lower wages = more jobs… employers don’t hire people just because they have room in the budget, because that’d be lost profit! They only ever hire (or schedule) the absolute bare minimum of people who are required for the amount of work that needs to get done. cf. when penalty rates were cut here a few years ago – workers did not get any more shifts to compensate for those lost wages; all the money companies no longer had to pay in penalty rates went straight to their profits. TBH literally every single time one of those talking monkeys from the small business council or whatever rattles off these dishonest talking points I would like journalists to take them to task over it.

a cartoony avatar of Jessica Smith is a socialist and a feminist who loves animals, books, gaming, and cooking; she’s also interested in linguistics, history, technology and society.