Should the government set a minimum wage above the poverty line?

Question

What would happen if it did?

Don't assume you know what my views are. I'm curious about yours!

Answer 1

no minimum wage is not a good idea anyway, the market should set wages. Artificial mandates only price marginal workers out of jobs.

Answer 2

Well, we have a minimum wage in the US, and the problem I see with it is the people who do not qualify for a minimum wage job get no job at all. There are, of course, various programs for the disabled and so forth, but not for someone who just has a lousy record or no marketable skills.

If there were exceptions permitted to the minimum wage (rather than simply making all such jobs illegal), then the people who got the below-minimum jobs could start building a record to improve their situation and be able to get a better job. This way, they either have to go to school (and some are illiterate and can't take that option) or accept welfare.

There was a time when there was much talk of a "junior minimum," for people below a certain age. It would be lower than the adult minimum. But the better alternative, I believe, is to let setting wages be a thing between employer and employee, and let the government's role be limited to cases of injustice which are brought before the court. After all, we have no slavery in this country.

If employers were forced to compete for skilled employees without the interference of government, people might take low wage jobs for a short while, but would soon gain experience, hear of something better and move on. The free market works in labor just as it does in manufactured goods and raw materials.

Answer 3

No.
First of all, the "poverty line" is an arbitrary number. It is made up by politicians as a tool to divide us against each other and buy votes for themselves. The vast majority that live in poverty (below the arbitrary line) own cars, houses, and big screen TVs. What we consider poor, is 100 times wealthier than 90% of the world's population.

Regardless of what politicians tell you, the world of economics does not change. Prices and wages are controlled by market forces (supply, demand, cost of goods). If you artificially raise wages, that increases cost of goods. To pay for the increased cost, businesses must increase price. So people make more money, but everything costs more, so nothing changes. Then the politicians will just arbitrarily increase the poverty line and we end up right back where we started.

It's all a scam by the politicians. Raising the minimum wage will change nothing. The only people that win are the politicians that just tricked you into re-electing them.

Answer 4

No I think the market should decide what the wages should be just like it decides how much good and services should cost. To the lamebrain that says why not raise it to $15.00 a hr it sounds like me when I was 12. you can tell people like this have never thought about running a business.

Let's see how that would work you run a landscape business, you have 5 employees paying $6.00 an hr after yearly expenses you clear 60k.

So now we go to 15.00hr that's a 250% jump in order to make 60K you have to raise your customers cost 250% or you have to lay off a few workers to maintain your income there is no free lunch someone will have to pay for it either thru inflation, job losses or both.

Answer 5

I'm not so sure that would work. Each time you raise the minimum wage, the company has to raise prices which causes inflation and raises the poverty line so you have to raise the minimum wage which would make the company raise the prices which causes inflation and raises the poverty line so you have to raise the minimum wage......

Answer 6

I have always thought about this. I wonder what raising the minimum wage, to say, $15.00 an hour would be like? Yes, I understand the cost of living would go up. But, would the amount of people relying on welfare and other social funding be more inclined to get out there and do the "jobs Americans won't do?" Seems like it could do a whole lot of good, in the long run.

Answer 7

28 States now have a minimum wage above the Federal $5.15. The Democrats have $6.85 on their first 100 hours agenda in Congress. Bush will veto that, it will not get the 2/3 rds. to over ride that veto. Republicans want Americans to work for nothing, They also want more Ilegals not less. There are 44 million Americans with no basic health Insurance, half that number are women and children.

Answer 8

Generally if you set a high minimum wage there would be greater unemployment because it is less attractive for a firm to hire someone.

It should not directly affect those with wages higher than the floor, and in developed countries especially the U.S. this would have a bigger impact on the teen workforce.

It is a extremely active topic of debate. But I would say in most cases it is not beneficial to the country in general.

Answer 9

That depends on if the minimum wage is above or below the market equilibrium price for labor.

If they set the minimum wage above the equilibrium price, then no, it will hurt more than it will help.

If they set it beow the market price, then it won't matter.

Answer 10

i'm not particular What the poverty line is yet raising agencies enter expenses are in no way strong for an economic device it may bring about inflation or perhaps worse. Stagflation. it would want to not destroy the commercial device inspite of the indisputable fact that it would want to damage it. because agencies might want to end hiring. lookup troublesome artwork markets or salary markets in an economics textual content e book. Any textual content e book yet i love Princeton comments AP e book plenty. strong success i wish this helped