$12 Minimum Wage: The Libertarian Proposal?????

I don't think the same situation exists with manufacturing that existed when Galbraith did his research. The most wage sensitive manufacturing has left these shores, and while there is probably some wage sensitive manufacturing left where minimum wage is paid, it is very small compared to the Retail and food service sectors.

And the pressure on jobs is offset by the additional spending, by a wage sector that typically spends nearly all it earns, creating new jobs, with the additional ages it receives.

 

The effects will be smaller, but the distribution effects still exist. It is an added bonus of the minimum wage, given underpayment leads to exaggerated wage differentials.