Source: Center for a Stateless Society
by Kevin Carson
“For more years than most of us have been alive, by-the-numbers ‘minimum wage increases cause unemployment’ puff pieces have been an almost daily staple at right-libertarian propaganda sites like Foundation for Economic Education. … One factor in particular that they fail to acknowledge, in generalizing about wages and unemployment, is elasticity of demand. The effect of higher wages on unemployment depends on how elastic — how price- sensitive — the demand for a particular good or service is. … I was surprised to see John Miltimore, at FEE (‘Why Are Fast Food Prices So High?’ July 9), demonstrate an awareness of the concept: ‘Fast food prices are high,’ he explains, ‘because demand for fast food remains really high, despite those higher prices.'” (10/06/24)