Jerry made two points on Paul's point. Summarizing those two points I
have expressed disagreement with the second, which was reproduced by Dan
Epstein as:
> 2) Reduction in corporate profitability would cause capital
> out-migration.
>
Then he offers the following comments:
Is that so? Capital invested in, say, McDonalds or other service
sector businesses would move their franchises elsewhere, outside of
the US, if the minimum wage was dramatically increased? This begs t
he questions: Does anyone know what percentage of minimum wage jobs
are "tied to the land?"
Of course, that is so. Because no capital moves anywhere if the
move is not profitable. Have we demonstrated that the move (due to
minimum wage rise) is profitable?
Fikret Ceyhun
Dept. of Economics e-mail: [EMAIL PROTECTED]
Univ. of North Dakota voice: (701)777-3348 office
University Station, Box 8369 (701)772-5135 home
Grand Forks, ND 58202 fax: (701)777-5099
