3 ms·

Also, self-interest is involved in maintaining the minimum wage, since people may imagine that if wages are dragged down at the lower end, it may pull them down

Also, self-interest is involved in maintaining the minimum wage, since people may imagine that if wages are dragged down at the lower end, it may pull them down at higher levels too. Minimum wages in other countries don't matter, since they have no intention of working in those countries. Do people care if wages are higher than they should be, according to supply and demand, and causing some underemployment? Even economists don't seem to agree on the effect of minimum wages. Generally, I'd guess people want more pay for themselves, up to the point that they genuinely fear their own unemployment. It seems that both employees and employers prefer to keep wages a bit over the equilibrium level.

Consultant32452 9y ago
Yes, people care if wages are higher than they should be. Were you not around when all the $15 minimum wage discussions were going on? In a thread earlier about FedEx using the old "private contractor" schtick with their drivers someone made the relative comparison to pizza delivery drivers. Specifically they said that since FedEx drivers don't get benefits, retirement, etc. that they are basically glorified pizza delivery drivers. The presumption there is that FedEx drivers aren't getting paid "enough" and also that a pizza delivery driver who got those things would be getting paid "too much."
- incompatible 9y ago
  $15 minimum wage discussions, in the US? I only vaguely remember it. I'm in Australia and the minimum wage is currently $18.29 AUD (I suppose a bit under $15 USD). I'd say anybody suggesting it should be cut would have no ambition of ever being elected to a political office. It's funny how people have such ideas about who "deserves" to be paid how much. It has nothing to do with supply and demand, making the labour "market" somewhat dysfunctional when judged as a market.
  - Consultant32452 9y ago
    I agree with you about the market. In this case there was a political candidate who ran on a policy which included raising the minimum wage to $15/hr from its current $7-something. There was a lot of fuss both ways about how minimum wage jobs were designed for high school kids vs there's lots of adults making minimum wage and they deserve a living wage, etc.

Consultant32452 9y ago

Yes, people care if wages are higher than they should be. Were you not around when all the $15 minimum wage discussions were going on? In a thread earlier about FedEx using the old "private contractor" schtick with their drivers someone made the relative comparison to pizza delivery drivers. Specifically they said that since FedEx drivers don't get benefits, retirement, etc. that they are basically glorified pizza delivery drivers. The presumption there is that FedEx drivers aren't getting paid "enough" and also that a pizza delivery driver who got those things would be getting paid "too much."

incompatible 9y ago
$15 minimum wage discussions, in the US? I only vaguely remember it. I'm in Australia and the minimum wage is currently $18.29 AUD (I suppose a bit under $15 USD). I'd say anybody suggesting it should be cut would have no ambition of ever being elected to a political office. It's funny how people have such ideas about who "deserves" to be paid how much. It has nothing to do with supply and demand, making the labour "market" somewhat dysfunctional when judged as a market.
- Consultant32452 9y ago
  I agree with you about the market. In this case there was a political candidate who ran on a policy which included raising the minimum wage to $15/hr from its current $7-something. There was a lot of fuss both ways about how minimum wage jobs were designed for high school kids vs there's lots of adults making minimum wage and they deserve a living wage, etc.