Is it really helpful for business and workers to enforce minimum wage laws?

Answer 1

Federal minimum wage laws hurt rural small businesses, who are behind much of the political opposition to the current increases. They compete with more efficient businesses in cities by paying lower wages . There are few if any companies in any large metro regions that pay the minimum wage and most are located where state minimum wage law are higher. One argument in favor on a minimum wage is that taxpayers effectively subsidize inefficient small businesses that pay people such low wages that their workers need government assistance to get by. Without poverty programs people would have to leave low paying jobs in rural areas and go to regions where higher wages were available. Look at the poverty rates in rural US.
http://www.visualizingeconomics.com/2007/08/11/united-states-poverty-map/

The theory that there would be no unemployment without minimum wages is only put forth by people who are ignorant of economic history and the large unemployment rates that existed before any such laws were enacted.

Answer 2

Actually, the government enforces minimum wage laws. If we didn't have minimum wage laws, businesses would pay the lowest amount they possibly could. Remember, businesses are really only out for themselves and you as a worker are just a number on a board that can be removed at any time.

Answer 3

Minimum wage is horrible. Anyone who says otherwise hasn't studied the subject too in depth. It causes unemployment. No min-wage=no unemployment. By definition, unemployment is being willing and able to work at a particular price but not being allowed to work. If you are willing and able to work at a particular price, and the law causes you not to be able to, that's wrong. Minimum wage is a poorly targeted redistribution of income. It creates incentives for people to drop out of high-school and skip college. It also is a disinesentive for new businesses to join the market, thus hurting all consumers. If I could start a resturaunt and pay people less than McDonald's employees, maybe I'd stand a chance to compete. If I can enter the fast-food market, the supply for fast food shifts to the right and price lowers. It is hurting everyone. But, people don't understand what it actually does!

Answer 4

The fact of the matter is,and I'm for better wages,but the only persons that will be affected by increased wages are senior citizens that live on a fixed income,the workers will get their wages increased,the businesses will raise their prices to compensate for it,but the people on fixed incomes will stay the same,many persons will tell you that they live better when they were making less but the taxes and cost of living was lower

Answer 5

well minimum wages should stay stable inline with inflation rates but since inflation is always fluctuating we can only take an average. those who say inflation rates causes unemployment have their head up something dirty. take for example a pizzaria hires a worker for 7 bucks and hour, minimum wages go to 9 bucks. So the owner is going to fire and rehire people skilled people?? thats dumb logic- so they are going to find more skilled pizza workers?? what happens is that buyers of pizzas pay more for pizza.

Answer 6

It is helpful for the most unskilled workers so I believe it is necessary (kind of a form of welfare) but ultimately supply and demand in the labor market will determine pay.

Answer 7

yes because if there was no minimum wage history would repeat itself like union strikes and immigrants working for cheaper and things like that.