EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre                                     A View from/of the Econochasm by John Palmer

Richard Posner deserves the next Nobel Prize in Economics
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Rebekah and the Minimum Wage:
Oh, yeah. We just LOOOOOOOOOVE minimum wage increases.
Rebekah tells about her experience in a small shop when the minimum wage was increased:
By the second month, we've laid off my newbie entirely. By the third month, we've laid off Miss Commissions. At the end of six months, I'm working 53 hours a week for the same salary, mostly because I used to like my bosses, but I'm damned tired. I apply for and get a job with better hours (and slightly better benefits) in a big corporation, taking my skills with me. The small store I used to work at is closed within a year.

Newbie's family is on public aid for three more years.

Miss Commission is on public aid for eight months before somebody else hires her.

The store owners, previously near retirement age, get pennies on the dollar for their investment, and have to find other jobs to pay their bills. They are unable to retire at 65, and are both still working for Wal-Mart, 35 miles away from their home, in their seventies.

Oh, yeah. We just LOOOOOOOOOVE minimum wage increases.

Category: Economics Posted on Monday, October 23, 2006 at 1:21am
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