Gunslinger08
Lifer
- Nov 18, 2001
- 13,234
- 2
- 81
I have mixed feelings on minimum wage, which go along with the current state of the economy.
You have the crazy people calling for ridiculous increases in the minimum wage (ex. $20+). People have to realize that forcibly increasing labor costs just causes inflation.
However, I do feel that the current economic environment isn't right for abolishing the minimum wage. Removing the minimum wage works when the supply of workers is outpaced by the demand of employers with open positions. This means that there is competition for workers, so wages will naturally increase to attract workers. This isn't the case right now, or probably really ever.
For jobs that wouldn't normally pay so low, this is typically the case. Employers have to compete to hire and retain talent. You also have some lower paying businesses that have built a reputation of customer satisfaction, even with higher prices, which allows them to pay their workers more for typical "low paying jobs." Examples would be Chick-Fil-A or Costco. Unfortunately, the market isn't such that it can support EVERY business being this way. There is a need for people who will work for bottom dollar so that businesses can compete on price instead of features. This is why I feel that a minimum wage is necessary right now. You need to keep the very bottom wages at a point where people still feel that it's worthwhile to work instead of living off of government programs. Basically, we're going to pay for it one way or the other. Either wages are artificially high, which raises prices, or unemployment is higher and the government pays to support people.
I have absolutely no idea how to determine what the "right" minimum wage is however. I am by no means an economist.
You have the crazy people calling for ridiculous increases in the minimum wage (ex. $20+). People have to realize that forcibly increasing labor costs just causes inflation.
However, I do feel that the current economic environment isn't right for abolishing the minimum wage. Removing the minimum wage works when the supply of workers is outpaced by the demand of employers with open positions. This means that there is competition for workers, so wages will naturally increase to attract workers. This isn't the case right now, or probably really ever.
For jobs that wouldn't normally pay so low, this is typically the case. Employers have to compete to hire and retain talent. You also have some lower paying businesses that have built a reputation of customer satisfaction, even with higher prices, which allows them to pay their workers more for typical "low paying jobs." Examples would be Chick-Fil-A or Costco. Unfortunately, the market isn't such that it can support EVERY business being this way. There is a need for people who will work for bottom dollar so that businesses can compete on price instead of features. This is why I feel that a minimum wage is necessary right now. You need to keep the very bottom wages at a point where people still feel that it's worthwhile to work instead of living off of government programs. Basically, we're going to pay for it one way or the other. Either wages are artificially high, which raises prices, or unemployment is higher and the government pays to support people.
I have absolutely no idea how to determine what the "right" minimum wage is however. I am by no means an economist.