why is there a minimum wage?

Question

I work at McDonalds for $8 an hour, what is the purpose of a minumum wage?

Answer 1

so the rich get richer

Answer 2

Well in a Walgreen's Perfect World most people know that if they work for minimum wage, they can be guaranteed that much by law so as to keep slave labor at bay which they do with the Mexicans in the grape fields anyway! But nobody can survive on that little money any longer!!!! The only problem is, it is pushing the small business people right out of business!! Therefore we are going into a economic collapse soon. It just means that we are going to have no more middle class and just extremely wealthy or extremely poor. Take your pick! Third World Country coming at us to a store near you!

Answer 3

If there wasn't a minimum wage you could be making $4 doing the exact same thing that a buddy was making $12 for just because the manager liked him better. Minimum wage protects the lowest paid and most vulnerable workers to make a subsistance wage. It is important for developed countries to have the majority of their population living above the poverty line, and a minimum wage ensures that everyone is making a base of the same thing. It also protects workers from slave labour. iI is part of a whole system of workers rights that were mostly developed after the stock market crash and the depression of the 30s to protect factory workers.

Answer 4

The reason there is a minimum wage is because a set dollar amount has been determined by the goverment as the lowest wage one person can survive on with one job. So pretty much so you dont get paid 10 cents a month.

Answer 5

look kid if youre trying to say that they pay you very little you are stupid because for that job you're winning almost like a proffessional over here in ga. here the minimum wage is 5.50! and some people don't even pay the minimum wage they rather pay for day instead that the hour! so that means people get paid less. look i work in a restaurant as a water ok and as a cashier on saturday on sayturday they pay me at 5.50 the hour on the other days thay pay me like 2.50 plus my tips! still the bassboy gets paid for the day and makes less money than me on saturdays(what i get paid on saturdays) and we work the same amount of time see that's why there is a minium wage b/c even if we have one thing like this are going on imagine if there wasn't a minimum wage peolpe will be expected to work more for less!

Answer 6

The minimum wage was intended as an "entry-level" wage for workers entering the job market for the first time. It was assumed the entry level employees would then progress to higher paying jobs as they worked up the ladder and add to their resume. It was NEVER intended as a lifetime wage to support a family. Raising the minimum wage hurts small businesses who are just geting by and prevents them from hiring more entry level employees, thus denying more opportunities to others. Fewer employers can afford to keep workers if they need to pay higher wages.

Answer 7

If there was no minimum wage, companies like McDonalds would pay a little as possible. Minimum wage helps protect workers.

Answer 8

The purpose for minium wage is so that there isn't someone who's only being paid $2 an hour.
OSHA made this law mostly after factory girls in lowell mass were making less than adequate wages.

Be lucky, $8 is a pretty high minimum, in CT it's only $7.40

Answer 9

Unequal bargaining power between employers and employees.

Normally, economics would dictate that the price of labor (i.e. your wage) would be driven by the market supply of McDonald's workers. If 100 people want to work at your job, the employer can pay $4 or even maybe $3 an hour and SOMEBODY will take the job. Conversly, if only 1 person wanted your job and McDonald's needs an employee, they would have to pay whatever you demanded as a wage (one Million dollars >:).

However, employers have an unequal bargaining power when it comes to hiring. McDonalds can put a "now hiring" sign up and many people will show up for job. Since the skill requirements are relatively low, they will probably find several potential candidates among the people that apply. Hiring doesn't have to be this way--imagine for example if everybody in town got together and refused to go into McDonalds to apply. McD's would then be forced to send people out to look for workers, rather than have workers come to them. This is what happens in the corporate world when supply is small but demand is high, as when you start dealing with workers with higher skill sets (i.e. corporate executives, lawyers, management consultants) who employers pay head hunters thousands of dollars to find.

Since demand is always greater than supply (more job applicants than jobs), McDonalds can lowball all employees. McDonalds makes much more than $8 having you work there. For example, let's say they make $20 having you flip burgers. But because there will always be somebody to replace you than they can find quickly, they have no incentive to pay you more, even if you are WORTH more to them. You can't demand higher wages because person X, a new hire, may take your job.

McD's is one "person", while you and all the potential job seekers are many. Thus, McD's doesn't have to compete with anyone to hire you, but you are competing with all of the job seekers who you do not know. Imagine if everybody who was applying said, "we will only work for $10." McD's would have to pay the $10, since they need workers and they can't hire anyone cheaper. They are still making a profit (20-10=10), but now they are paying you more accurately what you are worth to them.

However, because there are "transactions costs" to having you bargain with every prospective employee, it is very difficult for you to bargain for a wage that is more accurate to what you are worth. Unequal bargaining power=lower wage for you.

Minimum wage then attempts to make up some of this diferent.

Answer 10

The purpose of minimum wage is to prevent employers from paying you so little that you couldn't survive. It helps the worker.

Answer 11

$8???? When I was making minimum wage it was far less than that. If it wasn't for minimum wage companies wouldn't pay you half that much.