Originally Posted by Hydrae
Well, since I never went to college, I have never taken a microeconomics course. I speak from my experiences in the real world since I started my first job in 1976. So I do not even know what you mean by "market clearing price." Perhaps you can educate me on how a company that is in stiff competition and thus keeps it's prices as low as possible to remain in the market can have it's costs raised and still survive with its' profit in place.
I think that the stiff competition would also have to pay their workers the higher minimum wage.
I think an interesting question about this whole minimum wage thing would be the impact on the number of people eligible for the earned income credit.
If a someone has kids and the best they can do is minimum wage, they make an amount if money that means no federal taxes and they get up to a couple thousand from the treasury. It is intended to help people who work but do not make much money.
Somebody go read up on this and report back. I nominate recjake if he is not out chasing girls.