In the article, The Minimum Wage: To Raise or Not to Raise?, Mike Patton touches on the labour demand curve, elasticity, technological innovation in the very long run, and profit to support his stance against the raise.
For the sake of conciseness, we will solely examine his application of the law of demand for labour in the context of the minimum wage increase, and how it stacks up to peer-reviewed research. The law of demand is the hypothesis that there is an inverse relationship between the quantity demanded of the good and its price (Gateman, 2015). According to Patton (2015), the demand for labour will decrease if minimum wage increases. This is because labour costs contribute to average variable costs for firms, thus decreasing their
For the sake of conciseness, we will solely examine his application of the law of demand for labour in the context of the minimum wage increase, and how it stacks up to peer-reviewed research. The law of demand is the hypothesis that there is an inverse relationship between the quantity demanded of the good and its price (Gateman, 2015). According to Patton (2015), the demand for labour will decrease if minimum wage increases. This is because labour costs contribute to average variable costs for firms, thus decreasing their