[Superman]

Fascinating. So, you think that:

* Changes in the COGS cannot change selling price. (This is truly a revolutionary concept.)


and just before you went on the emotional tirade, you mentioned that you felt the net effect would be to increase unemployment. Well, that;s the same "sky is falling" shout that we hear from you capitalists each time minimum wage increases are discussed and you know what? Like Ron reported, those increases in unemployment simply do not materialize. And it's because of the concepts that you even mentioned, and which we observe in markets, but that conservatives for some reason are not willing to acknowledge. And that's the stuff like the impact to the economy of having six hundred thousand workers suddenly able to afford a car.

Despite all your gloom and doom analysis, here is what could happen:

* The price of burgers rises fifteen cents or so (I said $15 MW, not $17, and I said nothing of fringe benefits, and if you think minimum wage workers get 38% of their wage in benefits then you don't understand the fast food industry. And BTW, they prefer to be called the "quick service" industry, if that ain't a riot)

* The volume of burgers to be inverted rises, because there are suddenly millions (not just MIT's, but many other min wage workers) that can now afford burgers).

* Sales volumes and resultant profit margins rise on the strength of the additional cash flow through the economy. Remember, even in a slow economy, each additional dollar counts as five.

* Government welfare payments are reduced substantially, saving taxpayers money and further stimulating the economy.

* Government tax revenues rise on the strength of the more robust economy.

Now, I'm not pretending that all this surely will happen, but there have been many instances of government spending and government regulation that have had a WAY more positive effect on the economy than capitalists predicted. In fact, the classic model is where the capitalists say the economy will SPIN WAY OUT OF CONTROL, or maybe REVENUES WILL DRY UP AND WE WILL BECOME A THIRD WORLD COUNTRY, but the government takes the action anyway, and prosperity flourishes.

We liberals are getting a lot of heat for talking gloomy, but we're really brining a message of optimism and hope. With a little more confidence and faith, you too could understand macroeconomics. When we created the minimum wage law, and overtime for hours over forty, and removed the children from the workforce, you'd have thought the sky was going to fall if you'd listened to the capitalists. What actually happened was robust prosperity.

So, have a little faith, look at the broader picture and imagine being an American.