Instead, we allow businesses to charge whatever the market will bear and rely on competitive market forces to keep prices in line with costs.Thus, we don't tell Nike what price to put on its sneakers or Mc Donald's how much to charge for a Quarter Pounder.

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The legislation received a high-profile backer this fall in Democratic presidential candidate Hillary Clinton.

Using the nonpartisan Congressional Budget Office (CBO) methodology outlined above, Drs. Even and David Macpherson, economists from Miami University and Trinity University, respectively, conclude that 770,000 jobs would be lost if this legislation mandating a $12 minimum wage were enacted.

The same pressures of competition also affect the other side of the market — that is, wages.

Businesses are under pressure not to unilaterally cut wages, because workers, like customers, have alternatives; they can quit if an employer isn't paying market rate and look for employment elsewhere.

The CBO based its estimates on the results of dozens of peer-reviewed academic studies on the jobs impact of a higher minimum wage, including the latest and most up-to-date research.

Continue reading on Minimum Minimum Wage In March 2015, Sen. Bobby Scott (D-VA) introduced the “Raise the Wage Act”, which would raise the federal minimum wage by 66 percent from .25 to an hour.

In his words, “ was too low and was too high, so we landed at .” A new survey conducted by the University of New Hampshire Survey Center asks economists about their reaction to a minimum wage. S.-based economists oppose a federal minimum wage.

The survey asks several additional questions that shed light on this topline finding.

The lure of Indiana and Wisconsin for Illinois firms, or Nevada and Texas for California-based companies, could prove irresistible.

Moreover, families might choose to shop, recreate or retire in nearby communities with more favorable prices and tax systems.

And even if it were true, the current crop of workers would inevitably lose their jobs as firms substituted more productive employees.