Minimum Wage Debate
Discussions center on the effects of minimum wage policies on employment, job opportunities, hours worked, business costs, and worker welfare, including arguments for and against raising it compared to alternatives like wage subsidies.
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What would this do that a minimum wage wouldn't do?
That's an argument for increasing the minimum wage.
You might not lose your job, but you may see your hours reduced or you might not get the opportunity in the first place. Technically the employment numbers don't change, but you shouldn't think of of minimum wage employees like salaried employees. Minimum wage earners can lose fractional percentages of their jobs unlike salaried employees.Most proponents of raising the minimum wage cite the Card & Krueger paper which has aged quite poorly. It turns out that chain fast food resta
The minimum wage is an effort to increase the welfare of those whose skills are in excess supply.Economics is complicated and far from reliable. The idea that removing the minimum wage would result in full employment is ridiculous. It would make businesses richer and subject millions of people to worse poverty. There is open debate that the minimum wage even reduces employment [1].[1] - https:/
Why wouldn't raising the minimum wage have the same effect?
Is increased minimal wage a sign of something good?
This CNN article seems to support that.https://www.cnn.com/2021/02/21/politics/minimum-wage-inflati...
What if minimum wage causes less people to be hired.
When you raise the minimum wage, you don't change any of the other aspects of the business affected by it. So, say you have 15 employees making $10 an hour to keep your company afloat. (Just to keep things simple ,this is about the logic of it.) Now the minimum wage goes up to $15. What are you going to do? You would be losing money with a %50 increase in your costs. Most likely what you will do is lay off 5 employees (The weakest 5) and keep the remaining 10-- but now they have to do
I've never heard a good argument to justify having a minimum wage. A lot of the people who argue for minimum wages commit the fallacy of the false dichotomy: they think that the choice is between everyone having jobs and getting paid what they're paid now, and everyone having jobs and getting paid more -- they think they can somehow legislate the latter outcome.In reality, what tends to happen when you increase minimum wage is that businesses lay off workers. They only have so many