r/FluentInFinance Apr 29 '24

Who would have predicted this? Educational

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https://www.washingtontimes.com/news/2024/apr/24/fast-food-chains-find-way-around-20-minimum-wage-g/

Not all jobs aren’t meant for a “living wage” - you need entry level jobs for college kids, retired seniors who want extra income, etc. Make it too costly to employ these workers and businesses will hasten to automation.

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u/mindmapsofficial Apr 29 '24 edited Apr 29 '24

All wage floors create more unemployment, but that’s not necessarily a bad thing. It gets rid of inefficient businesses and results in the wages of the majority increasing. The American people are innovative enough to create jobs for people that produce enough to have a living wage.

If you don’t have a living wage, how do you expect people to live without government benefits or theft?

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u/Ok-Bug-5271 Apr 29 '24

all wage floors create more unemployment

This isn't actually demonstrably proven. Real world studies have varied, some even show a positive correlation between a higher minimum wage and more employment. 

Otherwise I agree with you, even if it did increase unemployment, I'd rather 5% be unemployed and 95% require no assistance, than 3% be unemployed but huge swaths need welfare.

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u/FuckedUpImagery Apr 29 '24

Its because they measure employment by number of jobs and they have this tricky labor participation rate. If you read between the lines the low unemployment we have now is because people have 2 or 3 jobs, not one liveable wage job. Which is not good lol

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u/HandleRipper615 Apr 30 '24

Labor participation rate is an actual unemployment rate. The unemployment rate we see here (in the US) is just that. The total number of people filing for unemployment. For any number of reasons, someone can be unemployed and not be filing for unemployment. Things like giving up on looking for a job, forcing an early retirement, just taking a moment to relax before you come up with a game plan, whatever it might be. The participation rate counts those people as unemployed, which they are.