Will Increasing the Minimum Wage Increase Unemployment?

Of course it will! Duh!

The only question is: By how much will unemployment increase as the direct result of an increase in the minimum wage?

Ask yourself a simple question: If something becomes more expensive, do people buy more of it? Or even the same amount of it? Of course not!

I used to work at a mortgage company. I once spoke with a Senior Vice-President who indicated that we were going to raise our rates by a percentage point. I asked him how much our sales volume would decrease, and his answer was: we anticipate about a 15% reduction in volume, with a 20% increase in revenue due to the rate increase, for a net 5% increase in actual revenues to the company.

There you go. If you make something more expensive, people buy less of it. Simple. The population as a whole just may show an increase in revenues, but that population will have shrunk.

For the ones laid off, or not hired, life will become significantly more difficult. They’re a lot less employable, because their labor is a lot more expensive, and all this in the context of businesses being less willing to hire them in general, again because their labor is more expensive.

It’s almost funny that there’s even a debate about this. It’s not actually funny because, again, Obama and his nutjob cronies, Nancy Pelosi and Harry Reid, and the Democrat Party, are playing with people’s lives. They’re willing to ruin some so that a few will get a raise.

— xPraetorius

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