Who would benefit if their was a reduction in the minimum wage for teenagers and?

Question

who would lose under such a policy?

Answer 1

The low paid workers would all lose.

Business and consumers would benefit.

Answer 2

wow there certainly are no economist here. the reduction in min wage would for the most part be beneficial to all. Employers would not be coerced into paying wages that did not reflect productivity. Since often jobs reserved and available for teenagers have extremely low productivity, they often can only afford to offer a wage under the min. (logically, wages must always be under productivity, otherwise the company would bankrupt itself.) but because many employment positions' productivity is under the min wage, companys either have to find a way to do without the extra labor or just close up shop. they cant magically pay someone who is worth 5 only dollars an hour 7 dollars an hour. so what ends up happening is that as min wage increases past many low productive jobs, fewer and fewer teenagers get employed or hours are cut. The real minimum wage is 0 dollars an hour.

Answer 3

Anyone who is a large employer of teen agers (fast food, theme parks, certain kinds of retail stores, etc.) would be the most direct beneficiaries. Teenagers would certainly lose. But some parents will lose as well, because they may feel compelled to provide more to their children to compensate for the loss. The poorest segment of the U.S. would lose, as some families actually rely on income made not only by adults, but also by their older children.

Others are harder to judge. It likely that unskilled, older workers would lose (say, those already in the fast food industry), as a company may be more liklely to hire a cheaper teenager than someone older--because, why do they care who's making the fries? Who knows where the savings would be distributed within the company; it could get be re-distributed to consumers through lower prices, or it could get redistributed to stock holders and owners who keep a larger piece of profit.

Oh, and the government would lose, as less money would be paid in payroll taxes, unless those taxes were re-added somewhere else (say, in the form of more coporate income taxes).

Answer 4

The teenager would lose and the employer would benefit. This policy seems exceptionally unfair to me. If a teenager is doing the same level of work as the adults, they should be paid the same wage as the adults. In my opinion this is nothing other than age discrimination. I find this policy simply outrageous.

Answer 5

It isn't clear.

Certainly employers might benefit, but they might just attractthe worst applicants for jobs.

The teeneagers might benefit, because it might allow buisiness to afford more teenage employees.

Other employees weould lose out as their wages could be lowerd down the scale.

The economy at large might suffer as teenagers would have less money to spend.