Quote:
Originally Posted by BtD";p="
Quote:
Originally Posted by ForceoftheTruth";p="
The reason that increasing the minimum wage doesn't increase unemployment is the fact that it increases the spending of the working class, which spends far more of its money than the wealthy (and the money of the wealthy tends to stay within wealthy circles). The stimulus from the increased spending offsets the disincentive on employers and results in no net decrease in employment.
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Actually, if the salaries increase, while the unemployement rate does not change - the overall production and therefore the economic wealth remains constant.. The money and products are simply distributed differently.. The labour have more money, while the owning class loses money... - BtD |
My point is that the working class spend a greater percentage of their money than the wealthy. Moreover, narrowing the gap between the rich and the working class, up to a certain point, benefits the economy by increasing the fiscal confidence of the working many rather than the rich few.