Among the most economically naive calculations that people (including government officials) make is to estimate the growth in tax revenues based on the assumption that nothing changes beyond a hike in the tax.
Does increasing the minimum wage reduce poverty or increase unemployment? Discuss…
Over the years we have seen a lot of small businesses lose jobs when wages rise (and they never come back again). Should we be helping those businesses to be more profitable or keeping wages low?
If we all earn less we all spend less – so the overall cycle of the economy is affected.
What’s your view?
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