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> Supply and demand are not linearly correlated even if you do subscribe to this "law", so increasing the minimum wage may have a disproportionately small impac

> Supply and demand are not linearly correlated even if you do subscribe to this "law", so increasing the minimum wage may have a disproportionately small impact on overall job numbers, meaning greater total wealth held by minimum wage workers in aggregate. The effect of not ever getting into the workforce at all is devastating to those few that don't make the cut. Meanwhile, the effect of a couple of dollars extra to those already in the workforce is comparably small. Consider that minimum wage could be raised arbitrarily. If 10$ is too low and 15$ is better why isn't 20$ even better? Why not 30$? The argument for which cutoff to choose can't be based on some basket on what people need to live a certain standard (i.e. a one-bedroom apartment in some urban area). > Do you really think Subway franchises are running on such razor thin margins that they'd be forced to shutter stores if they had to pay their workforce marginally more? Some of them certainly do. Subway is in decline: https://www.businessinsider.de/subway-closes-over-900-us-locations-2017-12?r=US&IR=T https://www.businessinsider.de/subway-closes-over-900-us-loc... Lots of low to minimum wage employers indeed do have razor thin margins. For example, Wal-Mart only has about 4000$ of profit per employee. Companies like Amazon only lose money on their fulfillment centers.

hellllllllooo 8y ago
> The effect of not ever getting into the workforce at all is devastating to those few that don't make the cut. This devistation is a societal choice made by having a non-existent social safety net in the US. In other countries it's less devastating due to government programs and universal healthcare that protect people while still incentivising them to search for work. You are using the lack of protections and support for the poorest in our society as an argument against paying them more.
- zeroname 8y ago
  > This devistation is a societal choice made by having a non-existent social safety net in the US. In other countries it's less devastating due to government programs and universal healthcare that protect people while still incentivising them to search for work. First of all, I agree that raising minimum wage without a proper social safety net is completely irresponsible. However, if you look at countries like France with "free" education, relatively high minimum wage, lots of labor protection and a strong social safety net, you will find massive youth unemployment. The social safety net is supposed to catch you from falling off the rope. If you're never allowed to get on that rope because you're not employable even at minimum wage, you're likely to stay in the net forever. Soon enough most people around you rely on the safety net and it becomes the social norm.
  - hellllllllooo 8y ago
    The US is so far away from that I wouldn't worry too much. See original article. People often seem to hypothesise and focus on bad things that could happen at the expense of bad things that are happening. The is plenty of room in between the two extremes of US and France.

hellllllllooo 8y ago

> The effect of not ever getting into the workforce at all is devastating to those few that don't make the cut. This devistation is a societal choice made by having a non-existent social safety net in the US. In other countries it's less devastating due to government programs and universal healthcare that protect people while still incentivising them to search for work. You are using the lack of protections and support for the poorest in our society as an argument against paying them more.

zeroname 8y ago
> This devistation is a societal choice made by having a non-existent social safety net in the US. In other countries it's less devastating due to government programs and universal healthcare that protect people while still incentivising them to search for work. First of all, I agree that raising minimum wage without a proper social safety net is completely irresponsible. However, if you look at countries like France with "free" education, relatively high minimum wage, lots of labor protection and a strong social safety net, you will find massive youth unemployment. The social safety net is supposed to catch you from falling off the rope. If you're never allowed to get on that rope because you're not employable even at minimum wage, you're likely to stay in the net forever. Soon enough most people around you rely on the safety net and it becomes the social norm.
- hellllllllooo 8y ago
  The US is so far away from that I wouldn't worry too much. See original article. People often seem to hypothesise and focus on bad things that could happen at the expense of bad things that are happening. The is plenty of room in between the two extremes of US and France.