> No, what it does is it causes prices to go up, which are amortized across all of society
It does both of these things. Some jobs are lost and some prices go up.
Some tasks are better off outsourced, automated, or not even done at all as the floor price on labor increases. Raising minimum wages here hurts. Shortening the work week helps.
The demand for some tasks is inelastic but easily performed by many different people. The price of these tasks increases in proportion to minimum wage. Raising minimum wages here helps the employees, and shortening the work week is a small hurt.
Some tasks already have an equilibrium price well above minimum wage due to a supply limitation of the capable labor. Raising minimum wages here is relatively neutral. Shortening the work week should increase compensation here and increase the motivation for employers to find ways to bring more lower skill people into the field.
It does both of these things. Some jobs are lost and some prices go up.
Some tasks are better off outsourced, automated, or not even done at all as the floor price on labor increases. Raising minimum wages here hurts. Shortening the work week helps.
The demand for some tasks is inelastic but easily performed by many different people. The price of these tasks increases in proportion to minimum wage. Raising minimum wages here helps the employees, and shortening the work week is a small hurt.
Some tasks already have an equilibrium price well above minimum wage due to a supply limitation of the capable labor. Raising minimum wages here is relatively neutral. Shortening the work week should increase compensation here and increase the motivation for employers to find ways to bring more lower skill people into the field.
Most things are somewhere between these extremes.