Words & Numbers
About this podcast
Insightful weekly commentary on news & current events from economist Antony Davies and political scientist James R. Harrigan.
“You Just Hate the Poor!” and Other Minimum Wage Misunderstandings
February 6, 2019
Fun fact: the profit margin for most businesses is about 8 percent. When you’re talking about categories like restaurants and retail stores, that margin drops to around 2 percent. Yet, some people still seem to believe that all companies are perfectly capable of simply absorbing dramatic increases in their operating costs—namely, labor—with no changes in behavior by these companies. Artificially inflating labor costs, as in the form of minimum wage increases, will not lead to decreased hours, lay-offs, deferred hiring, decreases in benefits, or increased prices for consumers because… reasons. And if you voice disagreement with any of these beliefs, then you must just hate the poor or other ad hominem claims. But who really “hates” the poor based on actual policy outcomes, the #FightFor15 crowd or those who oppose minimum wage hikes? Join Antony Davies and James Harrigan as they dig into this and more on this week’s episode of Words and Numbers.
Foolishness of the week
Topic of the week: “You Just Hate the Poor!” and Other Minimum Wage Misunderstandings
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