Alabama House Passes Minimum Wage Bill Blocking Planned Wage Increase

[Aquapod770]

(02-17-2016, 07:33 PM)Vas Deferens Wrote: The 'higher unemployment' argument has always sounded like a scare tactic from those who are benefiting from a low minimum wage.  If a company can't pay an employee a living wage, it shouldn't be in business in my opinion.  That doesn't mean there won't be other opportunities for workers to find employment that provides a living wage elsewhere.  

Except it's not a "scare tactic". Binding minimum wage is a legit term used by economists. Basically it says if the government sets minimum wage too high they're insuring a certain percentage of unemployment. This ends up hurting teenagers and low skilled workers the most. 

Now will going from 7.50 to 8.50 cause binding unemployment? Most likely not. But from 7.50 to 15.00? It's a reasonable concern.