4 ms·

you create a race to the bottom But this is true for everything where you can apply supply and demand, and there's always a balance between the two. you end

you create a race to the bottom But this is true for everything where you can apply supply and demand, and there's always a balance between the two. you end up with people willing to flip burgers or work a cash register for $2/hour But what happens in your scenario where there is a minimum wage law ? Those people magically make 5 times more ? Do you think you can force business to hire at any rate ? Or does the rate needs to follow productivity and current standard of living indexes ? What if your increase this rate by 100x, what happens ? But you'd end up absolutely tanking the median wage and standards of living If the scenario where people don't work for 2 USD/hour they have 0 of salary. So the second scenario where they work for 2 USD / hour makes everyone more rich, I would be more inclined to believe the median wage would increase, but that's a hard question. The most important is that people worked and sustained themselves.

Sohcahtoa82 8y ago
> But what happens in your scenario where there is a minimum wage law ? Those people magically make 5 times more ? ....yes? Considering that's what we have right now? You don't need to imagine this scenario. We're in it right now. In Oregon, the minimum wage is $10.75/hour. > Do you think you can force business to hire at any rate ? [...] What if your increase this rate by 100x, what happens ? Obviously not. I knew someone would try to make this argument, but I think its absurd. > Or does the rate needs to follow productivity and current standard of living indexes ? I'd make it follow a standard of living index. What the standard should be is up for debate, but I think at a minimum, someone working 40 hours a week should be able to live in a studio apartment on their own and buy food without government assistance. Two people working 40 hours a week each should be able to have a 2-bedroom apartment while raising a kid. > If the scenario where people don't work for 2 USD/hour they have 0 of salary. So the second scenario where they work for 2 USD / hour makes everyone more rich, I would be more inclined to believe the median wage would increase You're forgetting that the people formerly making minimum wage would either have their wage reduced to the hypothetical $2/hour or end up being replaced by a worker willing to work for $2/hour. If you lower or remove minimum wage, every minimum wage job will have a reduction in the wage. When an employer pays minimum wage, they're implicitly saying "I'd pay you less, but the government won't let me." > The most important is that people worked and sustained themselves. Only by a technical definition of "sustained".
- ttoinou 8y ago
  ....yes? Considering that's what we have right now? So if you have a magic law that force businesses to pay 5 times the normal productivity for free, then you must have a law that force businesses to pay 5000 times the normal productivity ? There must be something wrong You're forgetting that the people Yes I agree but then we need to look at new prices for consumers goods and services that will be lower. I don't think talking about median wage is very meaningful without comparing what you can buy with it

Sohcahtoa82 8y ago

> But what happens in your scenario where there is a minimum wage law ? Those people magically make 5 times more ? ....yes? Considering that's what we have right now? You don't need to imagine this scenario. We're in it right now. In Oregon, the minimum wage is $10.75/hour. > Do you think you can force business to hire at any rate ? [...] What if your increase this rate by 100x, what happens ? Obviously not. I knew someone would try to make this argument, but I think its absurd. > Or does the rate needs to follow productivity and current standard of living indexes ? I'd make it follow a standard of living index. What the standard should be is up for debate, but I think at a minimum, someone working 40 hours a week should be able to live in a studio apartment on their own and buy food without government assistance. Two people working 40 hours a week each should be able to have a 2-bedroom apartment while raising a kid. > If the scenario where people don't work for 2 USD/hour they have 0 of salary. So the second scenario where they work for 2 USD / hour makes everyone more rich, I would be more inclined to believe the median wage would increase You're forgetting that the people formerly making minimum wage would either have their wage reduced to the hypothetical $2/hour or end up being replaced by a worker willing to work for $2/hour. If you lower or remove minimum wage, every minimum wage job will have a reduction in the wage. When an employer pays minimum wage, they're implicitly saying "I'd pay you less, but the government won't let me." > The most important is that people worked and sustained themselves. Only by a technical definition of "sustained".

ttoinou 8y ago
....yes? Considering that's what we have right now? So if you have a magic law that force businesses to pay 5 times the normal productivity for free, then you must have a law that force businesses to pay 5000 times the normal productivity ? There must be something wrong You're forgetting that the people Yes I agree but then we need to look at new prices for consumers goods and services that will be lower. I don't think talking about median wage is very meaningful without comparing what you can buy with it