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« on: May 21, 2015, 03:15:33 am »
*grumbles vaguely* Problem with the milk example is that wages aren't a one-way street. The only variable involved isn't the price of the metaphorical milk. If setting the minimum price on milk subsequently caused everyone involved to be able to afford $1.25* milk, purchases would almost certainly increase. Certainly for stuff like that, demand isn't really going to change that much -- milk prices have something like freaking doubled in my lifetime, from what I recall**, and consumption damn sure hasn't halved. You could -- and do -- have demand shifts into other resources, but that's generally not (even remotely) a net economic loss. Money spent on water is still money spent, and whatever the price difference is between the water and milk gets spent on other things (like hey, maybe healthcare or education or personal business investments or housing or, y'know, stuff like that).
Work isn't really a resource that functions like a perishable item, though. Very different dynamics going on with it.
*Incidentally, that's hella' cheaper than actual milk is selling here in the states, but that's neither here nor there.
**Though that recall could definitely be spotty considering how volatile milk prices are on a monthly/seasonal basis. Also don't ask me about inflation adjustments, it's 3 in the morning and I haven't slept since yesterday.
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Last I checked, pegging the minimum wage in the states to inflation (i.e. it would skyrocket) would almost certainly not cause a significant GDP drop -- there would be a little instability (followed almost certainly by a notable increase, as demand shifts upward and in to less marginal items), and maybe the jackasses on top would have to stop raking it in quite so hard (on a per-worker basis, anyway), but the economy can frankly afford to double or better the minimum wage. Might not be able to double or better everything else, but shit, most of the everything else is already managing a living wage so m'personally less than concerned about that.
Sounds like it'd be a nice thing, to me. Min-wage folks might actually be able to live, and invest themselves in to doing something besides min-wage stuff, without breaking themselves in half in the process.