Re:What harm do minimum wages do?
by Sohcahtoa82 on Wednesday August 19, 2020 @05:05PM
(#24216470)
Without a minimum wage, the "market rates" for what is currently minimum wage labor will create a race to the bottom, not just in wages, but in standards of living.
There will always be someone more desperate for any amount of money, and eliminating the minimum wage won't create significantly more jobs, as businesses only hire enough people to satisfy demand for their products. Wal-mart won't suddenly hire more cashiers just because they can now pay $2/hour to someone living in a cardboard box.
When it comes to negotiating wages, people in current minimum wage jobs have zero leverage. Minimum wage is a necessity to keep people out of cardboard boxes or packed into tiny apartments like sardines. It is necessary to keep a decent baseline standard of living.
There will always be someone more desperate for any amount of money, and eliminating the minimum wage won't create significantly more jobs, as businesses only hire enough people to satisfy demand for their products. Wal-mart won't suddenly hire more cashiers just because they can now pay $2/hour to someone living in a cardboard box.
When it comes to negotiating wages, people in current minimum wage jobs have zero leverage. Minimum wage is a necessity to keep people out of cardboard boxes or packed into tiny apartments like sardines. It is necessary to keep a decent baseline standard of living.