Presidentiables often campaign about raising the minimum wage to decrease unemployment rates and attract locals to remain in the country instead of working abroad.
That sounds like a good idea, right?
And being part of the working class, receiving extra incentives could open doors for a better lifestyle. For example, you can buy better food (because eating healthy is often expensive), you can acquire better homes, and anything better you can imagine.
Better is always relative, isn’t it? How I define what better looks like might be something else for you entirely.
But is the increase in the minimum wage the solution to unemployment?
From The worldly turn:
Study after study (140 in the UK alone) has found that even large increases in the minimum wage have failed to lift unemployment. Labour and product markets don’t respond, as neoclassical theory claims, to the sudden hike in wage rates.
Interesting? Check out the article to dive deeper into the discussion.
I think it’s really something to think about and even relevant when you think about the carbon tax. Here’s an open letter signed by hundreds of academics that warns against the carbon capture and storage tax credit.
jessa 