If you build a man a fire, he'll be warm for a day.
If you set a man on fire, he'll be warm for the rest of his life.
Yes. Labor is essentially a market good; its price is determined by the same forces of supply and demand that govern every other market good. Government policies, like price controls on other goods, can alter the price of a good but not its value meaning that the minimum wage decreases the demand for labor and thus reduces the amount of labor that businesses choose to purchase. It drives people out of jobs and depresses the wages of jobs that would otherwise be worth more than the minimum wage.
If we want to help the working class in this country, we should working on keeping jobs here rather than driving them overseas.
Yes, the minimum wage should be removed. Because the gap between the wealthy and the poor just isn't wide enough for my liking.
Think about a village with 100 people. 30 of them are uneducated and can only do sevice jobs for the remaining 70. There are only 20 such jobs and 10 of them are unemployed and desperate of getting a job. Let's say the 20 people earn 10 dollars per hour, but the 10 unemployed earns nothing except food so 8 dolllars is pretty good wage. However, the 70 don't really need more service workers and employ 21 people. It keeps going till for instance the wage is at 4 dollars and they are so cheap that they can employ workers for nearly useless tasks.
It would have been much better for the 30 people at the bottom if they decided to keep a minimum wage, and gave support to the ones who can't find a job. Also the unemployed workers could have found something else that was in demand, or they could have gotten themselves an education and increase their value. Actually it would have been better, even if they didn't find other jobs.
We need a minimum wage, but it shouldn't be too high. Because then it's too hard to enter the labour market, since they have to create so much value.
I don't understand why anyone would want this country to become more like a third world ****hole.
I said no because minimum wage puts a false bottom on goods and services, which prevents them from being cheaper. Also, the minimum wage doesn't help the people it is supposed to, the unskilled worker, because the prices of goods and services rises to the new floor on prices. The only people that the minimum wages help are union workers at the top of their pay scale. The only way that they will get a raise is when minimum wage increases. In my 41 years of life I have seen minimum wage go up three times and each time the cost of goods and services went up. The cost was roughly the same percentage of what it cost to purchase basic goods and services under the new minimum wage as it was under the old minimum wage. For example, back when minimum wage was $3.15 an hour a hamburger at McDonalds was 59 cents. With minimum wage at $7.50 an hour that same burger is now $1.09. Did minimum wage actually help the unskilled worker in order to afford a basic food product? No, because it costs roughly the same percentage as it did under the old minimum wage.
Last edited by The_Patriot; 10-07-10 at 07:30 AM.