Did the tories used to say minimum wage would cut jobs?
They most likely did the reason is because it puts a floor on how much prices can drop. For easy math let’s say the minimum wage is $10. When the economy is good the average store or restaurant that pays minimum wage might be able to keep a full staff via volume. When the economy drops they might hack their prices producing a smaller profit margin. That might boost sales however if it dose not they will have to find ways to cut costs to keep the shop open so that means people will have to get laid off so they can save money. If the government would lower the minimum wage during bad recessions in hopes of encouraging deflation while fighting to keep the labor pool small in hopes of maximizing going rate I wouldn’t have much issue.
