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It is largely incorrect to blame loss of US manufacturing jobs to minimum wage legislation. If a company is paying $20/hour in the US, well above the minimum w
by greeneggs 8y ago
It is largely incorrect to blame loss of US manufacturing jobs to minimum wage legislation. If a company is paying $20/hour in the US, well above the minimum wage, and can outsource an equivalent job for $6/hour, that's just what it will often do.
Minimum wage doesn't come into it. No employee earning $20/hour is going to accept that tomorrow she'll get $6/hour for the same job. (One reason is pride. Another is information asymmetry. As an employee being offered a $14/hour wage cut, you can't know whether the company is telling the truth about the equivalent cost of labor in China, or is just trying to cut your wages.)