Comment by michael1999
3 hours ago
Your "often" is not borne out by actual econometric studies. The actual rate of minimum wage that produces dead-weight loss is much higher than most minimum wages in the USA.
In any market, there is wide range of possible clearing prices with cost of production as a floor, and marginal value as a ceiling. Which price the market settles on is often a function of bargaining power as much as productivity. Minimum wage regulation is a heavy-handed way to change that bargaining relationship.
Hmm? Outsourcing is the clear counter example. Or do you think it is a coincidence that no outsourced job is more expensive than hiring Americans.