what determines minimum wage?

Question

can someone tell the deciding factors of minimum wage?

Answer 1

The minimum wage is determined by law, and therefore seems arbitrary. In actual practice it is feel good legislation that effects very few workers. The current change will directly effect only about 7 million workers out of over 150 million, and increase their wages only a small amount. Politicians do not want to pass laws that will have a noticeable negative effects on employment.
Some labor economist believe that the wage level is partially set by acceptable "social standards" as well as supply and demand so increasing the minimum wage tends to put upward pressure on wages at the low end. An employee that is not paid more than the minimum wage will be less likely to stay at his job, so an employer who wants to keep him will raise his wage to keep it above the new minimum.

note: In a world without government and charity that provides social services the minimum wage would be determined by the wage necessary for survival. To accept a lesser wage would result in death and a decrease in the labor force until supply and demand produced the necessary survival wage.

Answer 2

I assume you are talking about the phony government mandated minimum wage. There is no calculation it is strictly a political calculation. Raising is only done to score political points with the weak minded and Union bosses. Then it is elevated to the maximum amount politics can bear.

The real minimum wage has never changed it's zero. Thats what people that don't have jobs make per hour. They are the one's that pay the highest price for the minimum wage.

Answer 3

The Man

Answer 4

it is meant to be adjusted in accordance to inflation and the cost of dwelling. by utilising that known, minimum salary could desire to start at over $12 and hour--stable success convincing our overpaid Congress and president to make that strengthen. This strengthen might strengthen spending ability and the economic equipment (no, companies can basically strengthen fees lots--they'll could desire to forfeit greater income, it is all). it would additionally stress many illegals out of the retail artwork stress (because of the fact might you go with to hire illegals at McDonald's once you may desire to pay them $12, or get greater on your funds by utilising hiring somebody who's greater matured and does not have a language barrier?). hi, a minimum of we are greater aggressive with China now with our slave wages! Japan's has many of their vehicles made in Kentucky to save on labor fees--LOL!!! And to those that think of that depressed wages boosts the economic equipment by utilising retaining labor fees and fees supposedly low, in simple terms take a glance a how great the economies and dwelling standards are of one/3-worldwide countires! perhaps we could desire to continually make minimum salary even decrease!

Answer 5

At this point MW makes employers not want to pay more and law makers lazy, it should be $15 until 2020 in the USA to stop penny penching States underpaying people.

Answer 6

the poltiicans pull it out of the air- if it is higher than what the market says a job should pay- that job does not exist. If it is lower than what the market says a job should pay no one notices it exists as the company pays people what ever they will take and price accordingly.

Answer 7

Washington, Please raise the minimum wage to 14.00 dollars for all 50 states and make this a great country again.

Answer 8

Look to the lowest common denominator.

Answer 9

Big money.