The law of supply and demand states that if you raise the cost of something, you will get less of it.
Say you can produce a certain amount of widgets out of a given resource, but with research you can produce more widgets, and that you can reduce the time needed to do that research by hiring more people and equipment. Now you are in a situation where raising the cost to your customers can result in a larger availability of widgets.
And that's just with widgets. If you look at wages, raising the minimum wage has lots of possible effects, many of which can actually serve to reduce the unemployment rate over time. One of them is that if the minimum wage is a reasonable margin above subsistence, then people in employment find it easier to start small businesses, leaving a job vacant when they venture out on their own and then even employ people themselves.
Damning people who are willing to work, to subsistence level incomes, is not how you grow an economy.
Comments
The law of supply and demand states that if you raise the cost of something, you will get less of it.
Say you can produce a certain amount of widgets out of a given resource, but with research you can produce more widgets, and that you can reduce the time needed to do that research by hiring more people and equipment. Now you are in a situation where raising the cost to your customers can result in a larger availability of widgets.
And that's just with widgets. If you look at wages, raising the minimum wage has lots of possible effects, many of which can actually serve to reduce the unemployment rate over time. One of them is that if the minimum wage is a reasonable margin above subsistence, then people in employment find it easier to start small businesses, leaving a job vacant when they venture out on their own and then even employ people themselves.
Damning people who are willing to work, to subsistence level incomes, is not how you grow an economy.
And when you get past elementary, let us know.