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It’s not efficient at all. In fact it’s quite the opposite. Minimum wage will reduce overall employment, because the price of labor increases.
by 0x8BADF00D 8y ago
It’s not efficient at all. In fact it’s quite the opposite. Minimum wage will reduce overall employment, because the price of labor increases.
- TheLoneAdmin 8y agoDoesn't BEZOS increase the price of labor for Amazon, reducing the number of employees they employ? IMO, this looks similar to a minimum wage law for large companies.
- bryanlarsen 8y agoThat's a very common assertion, and fairly well supported by common economic models; but the actual observed effect is quite small.
- user3359 8y agoThis is my thought process as well. Amazon may not be able to immediately automate it's workforce, but can ramp up investment for fewer kmployees with higher output over time. McDonalds on the other hand, already has kiosks installed everywhere and simply has to decide orders can't be taken at the till anymore. There goes 50% of customer facing staff. And here comes more of the population relying on government subsidies. Basic income is still a more viable alternative, but I have low hopes of this being taken seriously for another 10-20 years.
- sesutton 8y agoEfficient in terms of administration. There's already a minimum wage so simply increasing it shouldn't require a lot of new bureaucracy like this would and achieve the same effect.