This threat—that when wages go up, employment goes down—falls neatly into what is commonly known as “trickle-down economics.”Yes according to the author of this passage, there should be a hike in minimum wages of the workers. This article revolves around a concept - "Does increase in minimum wages decrease the number of jobs?". After reading this passage your answer for this question will be a big NO.
We all assume that when the wage increases, the cost of labor increases and so the company will have to cut down the number of jobs it offers to remain competent in the market. But this notion is not exactly true. Actually there is neither a need for the company to cut down to jobs nor strike to remain competent in the market.
Author of this passage explains the point in a very efficient manner. If the minimum wage of the worker is increased then the same worker would spend his perks to buy some goods which in turn will create demand for various products which in turn will have a pressure on the company to hire new people and needless to say there will be a decline in the number of unemployed.
"Economists who correlate the supply demand with minimum wage - number of jobs actually don't have adequate data to backup their statements", author says. In fact there has been a steady increase in the employment in the history of America which saw hike in the minimum wages a two dozen times. Author also gives example of Dominos.
He concludes that this notion of "Less jobs for more wages" in to add money into the pockets of elite class and pickpocket from the poor workers.
My opinion: Author of this passage has perspicuously stated each and every aspect on increasing the minimum wages. But the profit a company expects after a wage hike will only be seen in long run but it is not an immediate effect.
You can read the full article from here: A threat, Not a theory
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