Minimum wage

I think that instead of directly impacting unemployment, this policy should increase industrial automation. Although many businesses complain when minimum wage increases, they typically don’t lay off that many staff in reaction to an increase, at least not at first. The reality is that while they don’t see the work as being worth the wage, they’re businesses don’t function without the work, so they keep the staff and pay the new wage. However, when it comes to planning expansion, or even new businesses starting up, the high minimum wage makes the capital investment of automation more worth while.

Therefore, I would argue to remove the unemployment impact of minimum wage, but add a increase to industrial automation with a longer period to represent the capital not being available right away to automate the minimum wage workers away.

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Maybe the impact could be tweaked lower not removed, as some businesses may not find it that easy to adjust. There should be a link to automation though.