We have to turn to Worthwhile Canadian Initiative to find a coherent discussion of the Minimum Wage. It places the impact of Minimum Wage increases in the statistical realm of probability. The Post, though, makes not extrapolation to determine exactly where underutilization of the Minimum Wage actually presents economic profits to the Employers of Minimum Wage labor. Some may ask why this is important.
Economic Profits will always expand Supply (shift the Supply curve upward) because Employers will attempt to maximize these excess profits without a correspondent shift in Price demanded. Consumers will not pay the equilibrium Price for the Good, and undue resource will be devoted to the production of the Product. Minimum Wage labor find themselves working harder for even less actual draft from the Economy for Living Costs. Consumer Incomes rise with more Product demanded–raising Prices overall; yet, Minimum Wage labor find greater labor effort demanded, while enduring again lessened ability to pay for Living Costs. Consumers and Employers use cheap Product and economic profits to suppress the Living Standard of the least-provisioned element of the total Labor force.
Now it is only necessary to determine exactly where economic profits begin to appear. This author is not really great in crunching the numbers. I would suggest economic profits begin to appear somewhere before Minimum Wage drops below 38% of Average Labor Wage (position where access to Minimum Wage labor starts to disappear from Labor inability to support themselves), and starts to disappear around 46%, reversing once Minimum Wage reaches 50% of Average Labor Wage (decaying normal Business Profits); this information consistent with the findings cited in the Post. Will there be a drop in Minimum Wage employment with an increase? Only to the elimination of the artificial shift in the Supply curve. lgl
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