There is every need to bring morality into it, otherwise you end up with immoral laws just because some jerk who gets elected swallows your immoral arguments about using productive people to create jobs... as though the purpose of productive activity were activity (employment) rather than production (goods and services).
This argument is absolutely wrong. In the case of the inelastic demand some of those companies will simply go bust because they have to have a certain number of workers but the workers are priced out.
You need also to think morally: minimum wages are the gov't stepping between two people and banning them from interacting on a voluntary basis; that is fundamentally immoral.
Chart 2 which demonstrates "inelastic demand" is flawed in two ways. First, it relies on perfect inelasticity , which never exists. Second, it assumes that production costs could somehow magically be absorbed rather than affecting the price, quality and/or quantity of the goods and services produced. Also, your ability to use political power to put some, (even one), out of work for the benefit of others is morally and ethically callous. You really need to read Frederic Bastiat.
There is every need to bring morality into it, otherwise you end up with immoral laws just because some jerk who gets elected swallows your immoral arguments about using productive people to create jobs... as though the purpose of productive activity were activity (employment) rather than production (goods and services).
A is A.
dannidandannikins 2 years ago
But there's no such thing as morality, which is why it is destructive to the social order to make compulsory law systems.
Jcolinsol 2 years ago
This argument is absolutely wrong. In the case of the inelastic demand some of those companies will simply go bust because they have to have a certain number of workers but the workers are priced out.
You need also to think morally: minimum wages are the gov't stepping between two people and banning them from interacting on a voluntary basis; that is fundamentally immoral.
dannidandannikins 2 years ago
The minimum wage however prompts companies to autamate much faster.
Lamnont 2 years ago
Chart 2 which demonstrates "inelastic demand" is flawed in two ways. First, it relies on perfect inelasticity , which never exists. Second, it assumes that production costs could somehow magically be absorbed rather than affecting the price, quality and/or quantity of the goods and services produced. Also, your ability to use political power to put some, (even one), out of work for the benefit of others is morally and ethically callous. You really need to read Frederic Bastiat.
BryanMorton 3 years ago