The C Is for Crank
Supply and Demand Doesn't Contradict Support for a Higher Minimum Wage
The C Is for Crank on the apartment market vs. the labor market.
The libertarian-leaning Washington Policy Center reports, facetiously, that PubliCola offered "the best argument against [a] minimum wage hike" in Seattle when we reported that the law of supply and demand appears to be working in the city's apartment market—that is, as the supply of available apartments in the city has dipped, rents have increased, and as the supply has gone up, rents have gone down.
Their argument, essentially, is that the supply of labor, like the supply of apartments, will go down when the cost of that labor increases (in the case of proponents of a higher minimum wage, to $15 an hour).
But that's a misinterpretation of what I wrote.
Increasing the wages of workers (that is, the supply of capital, AKA money in people's pockets) will increase the demand for goods and services, and therefore the number of customers for the very same businesses the WPC claims to advocate for. If I make more money, I spend more, thereby helping keep businesses in business.