Who still thinks we need a minimum wage?

Question

Won't the economy work out whatever wage a person is worth?

Answer 1

The purpose of a minimum wage law is political, not economic. It makes newly-enfranchised low-wage voters grateful for the apparent help. So they are likelier to vote for the governing party. It pleases plutocrats and Union leaders because it reduces possible dissent and striking by workers. The general economic effect is slightly inflationary and ensures some unemployment; which means that the middle class find plenty of servants willing to work for cash.

Answer 2

No. The only way that works is if everyone is in a union. I'm not a union hater, but I don't think anyone wants to see that.

In some areas the economy is good enough that supply and demand works out that hardly anyone will work for minimum wage. In most places though, minimum wage provides the base of what labor should be worth, and having skills gives you more money on top of that. Without a law saying how low they can go, employers could do anything--not pay you as promised, tell you to work off the clock, refuse to provide any kind of benefits, or pretty much whatever they want. The only thing you can do about it is quit your job. This won't be any skin off the employer's nose unless everyone quits at the same time--he'll just get someone else. So a worker would have no power at all to demand fair treatment from an employer.

Basically, if you leave it up to free enterprise, everyone would have to join a union or be at the mercy of their employer. Minimum wage and other labor-related laws were made with the idea that if employers take care of their employees, we won't need unions in most industries. If the law took the position that employers only have to answer to themselves, it forces employees to band together so they can give the employers some pressure to treat them fairly.

Answer 3

Employing people to do jobs that are not worth enough to provide a living wage is not efficient. In the absents of government assistance, charity or help from family the floor on wages would be the amount it would take to survive. That is the way it used to work but now when people are paid less than the survival wage there is a subsidy to the employer by society. . A minimum wage acts to correct this distortion in labor markets.

Answer 4

No, history has shown that employers, in the absence of appropriate regulation, generally have enough leverage over labor to force wages down below the level of a decent, livable wage. "The Economy" is not a perfect system on its own, and requires some oversight to prevent abuses.

Answer 5

The minnimum wage is, and always has, and always will be, superflous. There is not legit argument for it. The only time the people making the minnimum wage benefit is the short-run before the adjustment process. If binding, it causes unemployment. It does not lead to a more equal distribution of income. In fact, it leads to less equal distribution. I don't think the distribution of income should of concern anways. But, price controls hurt people they intend to help. Economist have long-aggreed that this is what happens. When a doctor says you have a disease, you listen. When economist say price controls are bad for the economy, you don't. Seems kind of stupid to me. They are experts in their field, yet we don't believe them. It's stupid.

A binding minnimum wage causes unemployment. It can be proven. Look it up. I could explain the demand/supply curve to you, but you probably would understand it better if you looked it up.

Answer 6

Don't need it. It's a feel-good political ploy that, like most feel-good political ploys, causes more damage than good.

Funny story. I was having this discussion with a co-worker who owns a side business. I was against the minimum wage, he was for it - for similar reasons to the other answers - businesses will take advantage of labor, etc.

Then I asked him what he paid his workers. "Uh...well...they're independent contractors. They work on commission (i.e. no minimum)." I asked why. "So they have to produce to earn money." Needless to say, that discussion was over.

Main point of story: For the those naive enough to believe in the benefits of minimum wage - there's always a way around it.

Answer 7

there are legit arguements for and against. I lean toward the lower or no min wage, but as long as people in favor realize there is a cost to the workers of increasing it I am not opposed to raising it

Answer 8

There still has to be guidelines on a person's minimum worth or else we would go back to medieval times. Be thankful there is no cap on how much we can make!

Answer 9

i think minimum wage should be based on the kind of work you do. for instance if i go work all day busting my hump in the sun outdorrs it should be at least 10.00 but a dishwasher would be like 7.00 but who could even try to survive on 5.75?

Answer 10

that will be worth a try..imagine all the illegals getting much lower pay than what they are receiving right now and it will all be legal! thats one way to discourage them from working here and instead just find a job where its closer to home instead of crossing our borders.