You must consider demand for labor. The supply could skyrocket but if demand goes even higher, wages will increase.Not just initially, they'd stay low as long as the supply of labor remains high.
And what wage should uneducated, unskilled, new immigrants be paid? I say only fractionally better than they were paid in the native countries. If they are willing to work for $1 an hour, fine with me.The countries presently producing those goods pay their workers a fraction of US wages.
If you're going to adjust for inflation with wages, you must adjust for inflation with prices. Housing has slightly increased. Cars, gas, electronics, food, etc., have decreased, adjusted for inflation.Don't count on it. Prices for both have climbed dramatically over the years despite the fact that real wages have been falling since 1970.
Figures don't lie but liars can figure. Its a basic economic law that the more expensive an item is the less of that item will be bought. Of course, there are exceptions, like monopolies and government interventions.There's multiple conflicting studies about higher minimum wages' effect on unemployment.
One shouldn't get pissed off doing math. If I determine an additional cashier will generate $200 in revenue in 40 hours of work, I'd be a fool to hire the cashier at more than $5.00 per hour. Doing that calculation shouldn't make anyone happy or pissed off. Its reality. The person who should be pissed off is the person willing to work for $5.00 per hour but instead gets $0.the entrepreneur inevitably gets pissed off
Exactly. What do you suppose the market for butterfly counters is? Since we don't have any, its obviously below any minimum wage.the entrepreneur isn't the one who determines the workers "worth", it's the market that does
Correct in both statements. So why don't we let market forces determine the prevailing wage? If we impose a minimum wage in your depressed zone, McD's may abandon the market since they can't make a profit. Businesses abandoning a market is bad for the business and bad for the area. The area gets further depressed.A McD store in a market with very low unemployment will find it next to impossible to get even a subpar workers willing to work for anywhere near minimum wage.
By contrast, a McD store in a depressed area with high unemployment will probably have no trouble attracting good workers to work for minimum wage.
A high minimum wage hurts depressed areas the hardest, just like it hurts the low skilled workers in good markets the most. Those who the law was intended to help get hurt the worst.
A high minimum wage in an area that has full employment is mostly irrelevant. No one will accept a job at minimum wage if they can find one at a much higher wage.
Yep. Partly because they accept a wage that is below minimum and therefore illegal. Legal minimum wage earners pay no federal income tax. Help reduce the illegal under the table jobs by eliminating the minimum wage.many illegal immigrants work for cash under the table
Obviously, that fits the definition of economically depressed. And a minimum wage will increase unemployment in these areas, just the opposite of what should be striven for. Full employment (due to no minimum) will dry up the supply of labor. A shortage of labor will drive up wages. This is the free market at work. Those in the bayou should not expect the same wage at those in downtown San Francisco.In economically depressed areas the percentage of low paid workers is much higher.
The local markets determine the prevailing wage for labor, not what some executive in some remote location earns. Those who earn a high wage should be celebrated and emulated, not villainized and condemned. Jealousy is not a market force. Would a maximum wage be workable?bigwigs are given golden parachutes
Why? Why would someone start a family if they can only earn low wages? Poor decisions by a very few people should not determine economic policy for a large nation.many heads of households are toiling at low wage jobs
If I'm willing to work for $x and someone is willing to pay me $x, how is it right for a third party to say no?
A high minimum wage increases unemployment for the least skilled. Its similar to removing the bottom rung of a ladder. The most skilled can leap above the bottom rung and can advance as they acquire more skill. The least skilled are stuck on the ground with no chance for advancement. Put the bottom rung back on the ladder. Eliminate the minimum wage.
Don't trust any politician, they want votes in the short term. On economic issues (minimum wage), listed to those educated and/or experienced in economic issues.
ps. I have a BA in Economics (40 years ago) and have worked as an economist for >25 years as an independent contractor. That's more education and experience in economics that most who make laws involving economics. In my opinion, the free market has, is, and can work again. Freedom over force almost every time is the right answer.
If $15 an hour is the right answer, shouldn't $150 an hour be a better answer?