This is a Good Way to Create More Jobs?

[bobbcat]

[Only registered and activated users can see links. Either login above or Register Now]

Businesses often respond to this policy by streamlining their labor force. It should not be a function of the gov't to dictate to employers just how much they are to pay their employees.

[Twinplets]

If companies have to pay their workers more, they hire fewer workers, and raise the price of their products, so that the higher wage has the same or less buying power.

[mrbowler]

Originally Posted by Twinplets

If companies have to pay their workers more, they hire fewer workers, and raise the price of their products, so that the higher wage has the same or less buying power.

I don't totally agree with your statement. Yes some of the labor cost gets passed onto the consumer(not all the time), and economist's argue that it's better to have some inflation instead of a deflationary problem. I would argue that companies try to maximize it's workforce(or the smarter companies) by having a optimal amount of worker's producing good & services for the least amount of cost-so if companies are doing this-then they would hire a worker if they need it-and yes they do need to consider the cost of hiring a new worker, but if you need the worker you will pay.