For John, BLUF: Sometimes we think we are doing good, but we are actually doing bad. But, it is hard to think about second and third order effects. Nothing to see here; just move along.
Here is the sub-headline:
From The Econ Log of the The Library of Economics and Liberty, by Retired Professor David Henderson.way back on 28 February 2016
Here is the lede plus five:
Jonathan Meer and Jeremy West have found that increases in the minimum wage destroy jobs, not so much by destroying current jobs as by reducing the growth rate of new jobs.What follows is "a simple numerical example to illustrate the point."
That makes sense if employers’ investments in capital are even partially irreversible, that is, if some costs of capital investment are sunk, as seems plausible.
Hat tip to the InstaPundit.
Regards — Cliff