US politics: populist threat

Article Abstract:

Pat Buchanan's views could affect US share prices due to his emphasis on job insecurity and attacks on big business. Companies are concerned that they will not be able to shed labor freely and that this could hit profits by pushing up costs. There is also concern that less interest is being shown in balancing the US budget during the presidential campaign of 1996, and that the new Congress may display a greater level of protectionism after the election.

United States, Stock-exchange, Stock exchanges, Economic policy, Buchanan, Patrick (American journalist)

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Why investors should fear a minimum wage

Article Abstract:

Opponents of a minimum wage argue that it increases unemployment since companies shed workers to pay for the wage. Research by Alan Krueger and David Card, two Princeton economists, shows that this may not occur. Higher wages may boost morale and productivity and reduce labor turnover. Higher wages may also force companies to be more efficient. Companies hiring workers have some degree of monopoly power and this affects the impact of a minimum wage.

Economic aspects, Wages, Minimum wage, Labor costs

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