Federal minimum wage rising to $16.65 on April 1

[CdnFox]

1 minute ago, TreeBeard said:

I never said anything about making it an absurd figure.  

Well show me how your calculating what an absurd figure is then. And if a little bit more makes no difference then a little bit less shouldn't either. Why don't we drop it to 17?

[Moonlight Graham]

8 hours ago, TreeBeard said:

By that logic, would it be better for the government to set a maximum wage of $17 per hour?   It would keep the costs of everything low, we wouldn’t need to worry about inflation and carbon taxes would be a thing of the past as No one could afford gas to go anywhere anyway.  

Yes wage caps would cause deflation and raising the minimum wage will cause inflation.

If they want the poor to have more money I think it would be better to tax the rich and give it to minimum wage workers.

Edited March 29 by Moonlight Graham

[Moonbox]

11 hours ago, CdnFox said:

Well intelligent people will get it. Next time i'll do it in crayons for you.

Show your mommy.  She's the only one these sorts of pointless comments are going to impress.  

11 hours ago, CdnFox said:

 

Riiiight - just like communism has never been tried because it wasn't "TRUUUUUUEEE' communism. Please.

Nobody was arguing in favor of communism, but don't let that stop you from tossing out your standard strawman to argue against. 

The point was that false economies are not rare at all, and that free enterprises themselves are naturally inclined to create beneficial ones wherever and however they can (like with monopolies, for example).  

This should be obvious, but apparently it isn't.  If arguing even basic econ theory like this is on the table, I'm not going to bother reading further. I'll spare myself the boredom.  

 

[CdnFox]

1 hour ago, Moonlight Graham said:

Yes wage caps would cause deflation and raising the minimum wage will cause inflation.

If they want the poor to have more money I think it would be better to tax the rich and give it to minimum wage workers.

So show your math that demonstrates how that is better. It hasn't worked anywhere else ive heard of over time, but if you've got some ideas then great. Lets hear how that works.

If it's just more "eat the rich because i'm jealous" then i doubt it'll have a positive effect.

[Moonlight Graham]

9 hours ago, CdnFox said:

So show your math that demonstrates how that is better. It hasn't worked anywhere else ive heard of over time, but if you've got some ideas then great. Lets hear how that works.

If it's just more "eat the rich because i'm jealous" then i doubt it'll have a positive effect.

Ok, from the Bank of Canada:

"This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass- through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018. A structural general equilibrium simulation suggests that minimum wage increases would reduce the level of gross domestic product by roughly 0.1 per cent by early 2019 and boost CPI inflation by about 0.1 pp. While the net impact on labour income would be positive, employment would fall by 60,000—a number that lies in the lower part of a range obtained from an accounting exercise (30,000 to 140,000). Consumption would decline because higher inflation would elicit a slight interest rate increase, which would more than offset the higher labour income."

https://www.bankofcanada.ca/wp-content/uploads/2017/12/san2017-26.pdf

So raising the minimum wage causes inflation, slows overall economic growth and decreases consumption, causes an increase in unemployment, and encourages more automation.

Edited March 29 by Moonlight Graham

[CdnFox]

7 minutes ago, Moonlight Graham said:

Ok, from the Bank of Canada:

"This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass- through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018. A structural general equilibrium simulation suggests that minimum wage increases would reduce the level of gross domestic product by roughly 0.1 per cent by early 2019 and boost CPI inflation by about 0.1 pp. While the net impact on labour income would be positive, employment would fall by 60,000—a number that lies in the lower part of a range obtained from an accounting exercise (30,000 to 140,000). Consumption would decline because higher inflation would elicit a slight interest rate increase, which would more than offset the higher labour income."

https://www.bankofcanada.ca/wp-content/uploads/2017/12/san2017-26.pdf

So raising the minimum wage causes inflation, slows overall economic growth and decreases consumption, causes an increase in unemployment, and encourages more automation.

Ok - that was my fault entirely for not being clear. Your statement had two components, the first being a claim regarding deflation and inflation, and the second that we would achieve better results by taxing the rich.  And i asked you to show your math without stipulating which of those two i was referring to.

I actually already knew and agreed with the first statement, which is what you provided proof for.  What i MEANT to ask was show how taxing the rich and engaging in 'wealth redistribution' would be better.

Applying more taxes to the rich is also a drag on the economy and giving that money to the poor in unearned dollars still creates inflation. So i'm not sure how that would produce a better result.

Apologies for not being clear in my meaning, that was a great answer.