In article , Ed Huntress
wrote:

On Wed, 5 Aug 2015 20:02:03 -0700 (PDT), "
wrote:

On Wednesday, August 5, 2015 at 5:16:16 PM UTC-4, Ed Huntress wrote:


That one looks more like raising the minumum wage caused recessions.

Then you need to take a closer look at minimum wage increases and GDP:

https://research.stlouisfed.org/fred2/graph/?graph_id=249246

There were two wage increases in '91. GDP climbed after the first, and
then climbed again after the second.

There were wage increases in '96 and '97. GDP went up after each one.

There were two wages increases in 2009. GDP climbed after each one.

On the other side, there was a wage increase in 1990. GDP went down.

You know what happened after 2007; wages weren't involved. Jobs were
hardly involved. g

So, as I said earlier, it's mixed. But minimum wage increases were
followed by GDP growth more often than not over the last 35 years.

--
Ed Huntress



According to the chart there were recessions at about the same time as the
minimum wage increases. The grey bars indicate recessions where the GDP did
not grow as you claim.

Dan

The GDP grew exactly as I said. If you can't read the graph, I'll pull
out the data for you.

Graph reading isn't the problem. The chart shows GDP reduction (not
increase) at the same time as increases in minimum wage. The cause is
of course political, not economics: Congress raises the minimum wage
only during hard times, to show that they are doing something, at last.
The subsequent rise is simply the general recovery from recession, and
is not a result of raising the minimum wage.

The minimum wage in Mass is $9/hr, or $3/hr with at least $20 per month
of tips, as of 1 Jan 2015. It was $8/hr before.

In the Boston area, Dunkin Donuts is offering $10/hr plus tips
(according to a sign out front), and has been for some time now, long
before the recent increase. Now one would assume that Dunkin Donuts
knows from long experience exactly how much they must offer to attract
the desired number and quality of employees.

As long as the minimum wage is less than the market-clearing wage for
low-skill jobs, the minimum wage will have no effect.

It would be useful to plot minimum wage and the earning quartiles or
deciles together. That should tell the tale.

Joe Gwinn