What Do You Think Of This Article That Says A Min Wage Hike=less Reliance On Government

What do you think should be the global minimum wage?

$0 - there should not be a minimum wage anyplace. I hope this following fictional conversation will show why a minimum wage is a bad idea.PE- potential employer,CU - Chronically unemployed who learned economics the hard wayMA - minimum wage advocate setting a job interview.PE- Looks over the application- You have been unemployed for years but you are the only person willing to work for $2 an hour the job is yours.CU- Thank you when do I start?PE - Tomorrow 9 AMMA- Hold on how dare you exploit him- he needs to be paid at least $10 an hour.PE- I can’t afford that muchMA: I don’t care he can’t live on $2 an hour you need to pay him $10 or not hire him at all.CU : I can’t live on $0 are you willing to pay me $10?MA : No.The above conversation is to illustrate the basic problem with the minimum wage it allows the better to be the enemy of the good. Employers try to pay as little as possible employees will try to get as much as possible.The next problem is the minimum wage prevents economic recoveries. In the next article someone who is now demanding a minimum wage hike Why High Inflation is Good in a Recession it states high inflation in a recession is necessary to return to full employment because employers refuse to cut pay because they don’t want to lose good employees so printing up a lot of money to devalue the dollar will reduce pay in real terms.An employer who refuses to cut pay in a recession is not a problem- as that only happens if a field is in demand. The problem is employers can not offer less than $7.25 so they have no choice but to eliminate a position. Going from $7.25 to $7 but keeping the same expenses will suck but so would making $7.25 and having prices increase increase by 3%. However in a recession prices will be dropping as well.The Keynesian school of economics state deflation is the absolute worse thing that can happen in an ecconomy so letting prices and wages adjust is unacceptable. They say it will lead to money hoarding and fear spending ever.The alternative views state that falling prices are not a problem because we should expect improved technology to push down prices and that recessions are caused by interest rates that are to low relative to savings and inflation leading to bubble that will eventually pop and wipe out a lot of wealth. This second view calls money hoarding savings which enable people to pay for things with cash and retire.

When minimum wage goes up do cost of goods increase as well?

When minimum wage goes up do cost of goods increase as well?Yes.Wages in a free market are based on the value of the marginal product of the laborer.A binding minimum wage (one higher than the market wage for some people) forces firms to pay their lowest-productivity workers more. Where does the money come from?Idiots on the left think businesses are just made of money. But they aren’t.The firm must either go out of business (yes, this happens), or raise prices, or raise the productivity of the low-skilled workers.When a firm goes out of business, that reduces supply competition in the market it is in, Prices will tend to go up.When a firm raises prices, well, then prices go up.When a firm raises the productivity of low-skilled workers, it invests in capital machinery and/or training that would not have made sense without the minimum wage. But where does the funding come from for that machinery or training? It must be borrowed, or in one form or another taken from other investment opportunities. This drives up the cost of capital and makes other firms less efficient than they otherwise would be. Rising capital costs and inefficiencies make prices rise higher than they otherwise would.So that’s why minimum wages tend to raise prices.Now, in reality, minimum wages affect a small percentage of workers. And many factors are affecting prices in a region at any one time. So there will be plenty of anecdotes of places where minimum wages were put in place and prices, say, fell.But the fact is, minimum wages are inefficient, hurt many of the least skilled (who now can’t get any job), and tend to raise prices.

Who are the winners and losers under a minimum wage policy?

I haven’t been able to pay anyone in the US minimum wage for decades. Even our janitorial staff makes $50,000 a year and they only work part-time.Do you know why?Because what you see as an amount written on your paycheck is not the only expense I encounter for employing you.Worker’s comp, social security, fica, health insurance, equipment put in place to ensure your safety, and toilet paper. Yes, I am getting into the ridiculous now, but when you use the bathroom, do you think of toilet paper as an expense I would not have if I did not have you as employee?I totally get that people want a living wage. But if the minimum wage was almost doubled here, I would fire half of my minimum wage workers because I could not afford the other expenses associated with employing that many people on top of the wage increase.No small business could.The pride that comes with your business reaching a point where it can afford to hire it's first employee is phenomenal and increasing the minimum wage would delay that feeling for many small business owners, possibly indefinitely. This would mean that business cannot expand. Most likely, it will end up closing it's doors, not matter how great their product or service is.If they could hire 2 people instead of only 1,…Most people think of large companies when they consider whether the minimum wage should be increased. They don't consider the impact that this increase will have on small businesses and those large companies? All started out as small businesses.Who gets hurts when the minimum wage increases? The ma and pop shops that are already disappearing from our economic landscape because they can't compete with the big names. Increase wages and we will see even less of them.Yes, a $15 an hour minimum wage is working in some areas of the US. Most of the businesses around here are small businesses, though. They are the cornerstone of our community. Without them, we would be like every other city in the US. If the landscape never changes, life would be really boring.

Do you agree with the belief that “A strong minimum wage sends a signal that there is dignity in labor, even for the jobs that require the least amount of skill”?

Firstly, the article you linked is one of the best that I have seen. It is absolutely correct in everything that it says. Secondly, in the context of the article, there can be absolutely no doubt as to the validity of the statement you’ve quoted above. So unequivocally yes! A strong minimum wage is a signal of the value we put on our Working Class.My only objection, and it is a small one, is that the article leaves us with the impression that it is the job of the government to bestow that mantle of dignity on our Working Class, as if it is an award, or a handout, or something of that nature.The reality is that wages are a reflection of the ability that workers have to negotiate fair compensation for their labor. The fact that our minimum wage is so disgraceful in the US, is testament to the success our corporations have had in destroying the right of our workers to effectively bargain for decent wages. And this affects all of our workers, not just those at the bottom of the wage scales.If we understood the question of minimum wages in these terms, we would then be working to restore the ability to collectively bargain with employers for decent wages and benefits. Wages that are the product of fair and effective negotiation between an employer and the Workers, implies a much greater level of dignity, than one that is established by legislation. In a decent country where Workers have rights, a legislated minimum wage is not necessary.5 Developed Countries without Minimum Wages