One major function of minimum wages is to offset the fact that union wages keep ratcheting up and in rust belt areas the minimum wage people could not afford th

One major function of minimum wages is to offset the fact that union wages keep ratcheting up and in rust belt areas the minimum wage people could not afford the new items made by union people, like cars - so that is why they buy used cars - if any. In a sense there is a need for a maximum wage as well, to limit this factor. This reduced spread between high and low wages is why Germany does so well - in effect the country becomes a large efficient factory. Which is why unions have a management role, board seats etc, so they know when an excess wage is bad for the company and for the country as a whole. Japanese and Korean unions do this as well, but in general do not have board seats. The USA lacks in this respect, so we have a lot of poor at work without enough money to buy much stuff - and selling stuff builds the economy.