<< > In fact, the unemployment rate has fallen significantly following the recent
> increases in the minimum wage. The argument, which can even be found in some
> mainstream texts these days, is that an increase in min wage increases
> consumption spending, which increases effective demand, creating more jobs.
Interesting, about five years ago I based my Introductory Economics
term essay on this hypothesis, which I thought I'd just pulled out
of my arse ;)
I'm really curious what any of the list economists have to say about
this.
wendy >>
the text I was thinking of is Baumol and Blinder. maggie coleman mscoleman at aol.com