Re:What harm do minimum wages do?
by rconti on Wednesday August 19, 2020 @03:40PM
(#24215243)
I tend to find the libertarian argument appealing, as well, but you're making a whole lot of assumptions.
I think your worst unchecked/unstated assumption is that "unemployed people are all looking for a job below the minimum wage but are unable to find one". That's simply untrue. "Unemployment" in the US is defined as people who are actively searching for a job (not merely those who do not HAVE a job), but there is no requirement that they accept any job at any (legal) wage.
Presumably, the vast majority of unemployed people, even in good times, would not accept work $1 below the minimum wage, even though they are actively searching.
IOW: You are assuming that the entire reason these folks are unemployed is because they are not allowed to contract their labor for a lower wage.
I think your worst unchecked/unstated assumption is that "unemployed people are all looking for a job below the minimum wage but are unable to find one". That's simply untrue. "Unemployment" in the US is defined as people who are actively searching for a job (not merely those who do not HAVE a job), but there is no requirement that they accept any job at any (legal) wage.
Presumably, the vast majority of unemployed people, even in good times, would not accept work $1 below the minimum wage, even though they are actively searching.
IOW: You are assuming that the entire reason these folks are unemployed is because they are not allowed to contract their labor for a lower wage.