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Funny how the same people who insist that we should raise the cost of cigarettes because, of course, it will reduce demand for cigarettes, and we should raise t
by SiVal 9y ago
Funny how the same people who insist that we should raise the cost of cigarettes because, of course, it will reduce demand for cigarettes, and we should raise the cost of fossil fuels because of course it will reduce demand for fossil fuels, also insist we should raise the cost of minimum-wage jobs because...for great justice!
I like NN Taleb's skin-in-the-game take on it. The only people who get to vote on the minimum wage would be those who work at a minimum wage job or want to do so. Instead of other people getting them fired to signal their virtue, let the people who will face the consequences decide. If they decided to raise the minimum wage, I would support it, too. If they decided they'd rather not, I wouldn't insist on overriding them.
- a3n 9y agoCigarettes and fuel are passive objects. People, including minimum wage earners, are economic actors that make decisions. It's complicated. EDIT: Or perhaps we've come to think of minimum wage earners as passive objects, no different from fungible cigarettes.
- mooreds 9y agoAgreed. I don't think that cigarettes will work harder or gain more skills if they are more expensive.
- jonex 9y agoThis is actually similar to what we have in sweden. The workers union negotiate with the employers, usually represented by an industry organisation. It works fine in the sense that it means that we don't need minimum wage laws and the minimum wage therefore varies based on the job. Usually there's a lack of representation of those who are not employed anywhere. So the union tend to prefer higher wages rather than increasing the number of jobs.
- emodendroket 9y agoSo, a union?
- panarky 9y agoDid you read the article? Because it debunks exactly this simplistic argument. > The argument goes like this: Low-skilled labor is bought and sold in a market, just like any good or service, and its price should be set by supply and demand. > A minimum wage, however, upsets this happy equilibrium because it sets a price floor in the market for labor. > More people want jobs at $7.25 than at $6, but companies want to hire fewer employees. The result: more unemployment.