Classical economists claim that raising minimum wages bring adverse outcomes such as unemployment and job market discrimination based solely upon an obsolete economic model known as supply a demand.
Economic research has proven the contrary:
Artificially raising minimum wages do not bring unemployment. All the contrary, it brings more employment at the same time that forces employers to innovate and optimize their resources
According to this same conservative ideology, an increase of productivity should bring higher wages. However, the last few decades had proven the contrary again. The U.S. has experienced a huge increase of productivity while wages for workers have been stagnated. In other words, all the new wealth created by the U.S. has been going to the top. As a result, "the rich gets richer while the poor gets poorer": increasing inequality.
Rightist politicians are afraid to talk academically about this problem because they know their arguments are based only on tea-party-like dogmatism, american dream cliches and Marco Rubio arguments. In other words, their arguments are nothing more than bullshit.
"Many economists used to think of the labor market as being pretty much like the market for anything else, with the prices of different kinds of labor — that is, wage rates — fully determined by supply and demand. So if wages for many workers have stagnated or declined, it must be because demand for their services is falling."
Reference:
[1] http://www.nytimes.com/2015/07/17/opinion/paul-krugman-liberals-and-wages.html?smid=fb-nytopinion&smtyp=cur&_r=1
No comments:
Post a Comment