Minimum wage positive or negative? ( Archived) (63)

I believe that there should be varying minimum wages set for differing industries and skill levels. I also think that those on unemployment benefits should perform a measure of service to the community, which by default would not necessitate a minimum wage.

How would that work TB ?

In a truly free market (of which, none exists, I know), labor is a commodity like anything else, subject to supply and demand curves. The reason there are low-paying jobs is because they are largely unskilled labor positions, making the supply of workers nearly unlimited, and thus the demand curve intersects at a lower wage.

To artificially regulate this relationship through a minimum wage law hurts everyone, because the backlash from market pressures is felt throughout the system. Higher wages for unskilled labor is passed of in the form of higher prices for the goods and services involved.

Higher prices for inelastic (meaning less available substitutes) goods and services means less disposable income over all. Minimum wage laws decrease the standard of living for everyone involved.

Let the market determine the wage and spend the money involved in regulation and enforcement on training and education so unskilled laborers become skilled laborers and can thus increase their value through value adding to their skills.

Propping up a huge labor pool of largely ignorant individuals through minimum wage laws doesn't help increase the standard of living for anyone. Its a form of codependent enablement that ignores the more basic need for adding value to a persons skillset.

JMHO.

Clean the streets, feed and care for the elderly, youth groups, childcare, restocking of fisheries, sustainable and labour-intensive farming work, small-scale manufacturing of basic goods no longer produced in the West...

In the UK we give £60 a week for someone to survive on unemployment benefits, why not pay them £100 to work say 18 hours over three days of the week. The gains made from the work would at the very least pay for the £40 difference, so it wouldn't cost the taxpayer a penny. Then there's the crime, health and social improvements we would see from the reduction of idleness to factor in.

This isn't a bad idea. I like it. However, in America, this would cause a conflict of interest with our penal system, wherein a large portion of these community services are performed by inmates of minimum security facilities (ie. DUI convicts, etc.)

Still, the idea of community service is sound.

Minimum wages where ?.

In some countries with out a minimum wage index the Employers will be more than wiling to pay less to their workers.

Minimum wages are not positive not negative they are needed to have an "order" on the economy of salaries.

In US
“…Historically, the Democratic party has generally been the one to propose adjustments to the current minimum wage, which would largely benefit workers, while the Republican party has sought to put caps on the amount of the raise, which largely benefits employers. Depending on which political party is in control of Congress, the minimum wage may not be adjusted for years, or it might be adjusted any number of times in a decade…”

The 2011 Washington minimum wage is $8.67

Washington's minimum wage applies to workers in both agriculture and non-agricultural jobs, although 14- and 15-year-olds may be paid 85% of the minimum wage ($7.37).

Washington's minimum wage will be $9.04 starting January 1, 2012.

I think that for high school students and perhaps college students it is ok, especially since they'd only be working part-time. Ok, many college students are only working part-time. But for many workers, minimum wage isn't enough to keep up with the standard of living. I think it's harder for single parents with more than one child. For the employer, it may be good to have minimum wage. Back to the standard living thing. In the state that I live in, minimum wage is $7.25. So, if they work 40 hrs/week for 52 weeks (taking no vacations, etc.) then they'd make a little over $15,000 before taxes. So, if a person is single, yes, they could live in a one bedroom or studio apartment and live frugally and be ok. This isn't taking health and car insurance into consideration. I think that it makes it more difficult for individuals to have some money in a savings account or put money away for retirement (even if it is $50/month). So, for someone that has kids making $15,000 isn't a lot. I mean, kids always need something...lunch money, school supplies, field trips, extracurricular activities, maybe some tutoring, etc.

With the way that things are right now, just having a job should be a good thing. I mean, it's not likely it has to be permanent.

That and many more things like make them go to school or to learn a new skill or get involved in community life with fitness, musical, ...programs.

Would you care to explain better Conrad?

$16 muffins pays for a lot of minimum wage workers.

And it goes back to fostered dependence of the codependency endemic to government programs. I have never seen a government truly willing to empower its citizens. Empowered citizens have no need for government.

Minimum wage is not good for the economy. It eliminates competition, eliminates jobs, increases taxes and keeps people burdened with student loan debt.
It needs to go the way of mini-dresses.

I understand. But do regard how much we currently import, and how simple the products we import would be to produce here(generally speaking), then it's easy to imagine such potential to create jobs that would fit within this idea.

Plus, i'm just one engineer, if we divided such a scheme amongst local groups and communities, i'm sure that educated and practical people throughout the land, armed with local knowledge, could contribute useful and better ideas of their own.

Ah. Labor Unions are the problem IMO, at least in the US. The whole reason imports are necessary (vis-a-vis Walmart) is because the unions have made the prospect of producing even simple to produce products here not worth the money. Not when there is a sizable labor pool overseas that can do the same for less.

Something my father told me back when he was alive: When the guy making the car makes $20/hr and the guy buying the car makes $10/hr and he's a professional (lawyer/doctor/etc.), there is a problem with this picture.

I can see your point, however, here in England we do so seem to have reached a saturation of education, so many courses we offer for the impoverished tend to lead to nowhere. They merely serve to disguise the level of unemployment, which suits the needs of the politician but not the needs of the nation.

Of course, commodities prices are linked to wages, cost of consumables, taxes, etc…and to demand-supply for the most.

A locally produced commodity with a local demand-supply is a different story than for an international commodity.

What you are saying is: that there should not be a minimum wage index in your country? Or in US ??

As I have pointed before “where” makes a big difference.

In my town we pay way above the minimum wage for agricultural works in the field –which by the way the minimum wages in Mexico are ridiculous low- a person can not live with that and to the least a family.

The Mexican gov sets the minimum wages index but if we hire people and we wanted to pay that to them, they will not work for that money, so we pay more than that.

The minimum wages index is just that an index in Mexico. In US I do understand employers have to pay at least the minimum wage.

How could you do that differentely?