I’d like introduce a topic of discussion that’s different from most on the Thinkers’ Forum blog. Get away from the heated discussions of religion, theism/atheism. Let’s see if we can get the same passionate discussion about a more worldly subject.
Like most persons who know next to nothing about economics I always accepted both sides of the debate on whether raising the minimum wage would be beneficial or harmful to the economy. I bought both arguments, one saying raising the minimum wage would mean employers would hire less because of increased cost and thus would lead to higher unemployment; on the other hand i also bought the other side’s argument that if a person works full time job he/she should not live in poverty. So i bought both sides’ arguments, all the while suspecting that people who are against raising it – mostly rich folks – were not necessarily worried about the country’s economy but the economy of their own pocketbooks.
And then I heard this podcast; i am providing a link to it. It’s a little longer than i would want it to be but it’s informative and humorous. Instead of making either a knee jerk “liberal” or “conservative” argument, it makes an economic argument FOR raising the minimum wage. You’ve probably heard the argument that raising the minimum wage would mean the loss of 500,000 jobs; this podcast says even if that is true, the economy would benefit by virtue of 25 million more workers, who are at minimum wage salaries, getting 30% more who would buy more and be beneficial to the economy. So listen and make up your own mind; and better still, let us know your opinions by way of commenting on this blog. Thanks.
http://thegoodfight.fm/episodes/20-minimum-wage-myths-busted
Shoeb Amin
When 30% more will buy the more goods, it will also later create more jobs and regain most of the lost jobs.
Recently a new book by Mr. Pikkety ” Capital, in 21st, Century ” is considered possibly a turning point in economic thinking. Almost every economist is commenting and arguing about this book. It is not just the minimum wage issue, but even the middle class is also suffering. Mr. Pikkety argues, with statistics, that wealthy people make most of their money by investments, dividend and capital gains which is taxed at much lower rate as compared to earned income and it does not create more jobs as is argued and believed. On the other hand middle class, which mostly has earned income ,is heavily taxed and wealth is getting accumulated in few hands. He suggests to reverse the taxing preferences and earned income should be taxed at much lower rate as compared to investment income.
Fayyaz