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The countries you cite are able to have a minimum wage of zero because it's coupled with a robust social safety net (sometimes along with other backstops--Norwa
by Lavery 7y ago
The countries you cite are able to have a minimum wage of zero because it's coupled with a robust social safety net (sometimes along with other backstops--Norway, for instance, is heavily unionized). This pairing is important, and is absent in the US.
- pg_bot 7y agoThere are about 40 countries without a minimum wage. I cherry picked countries that most people on HN would recognize since I'm assuming people would not know much about the economies of Tuvalu, Tonga, or Rwanda.
- aflag 7y agoNot sure what your point is anymore. Are those examples of countries without social welfare and no minimum wage? That seems to strengthen the point above your comment.
- akvadrako 7y agoThey are unrelated; countries need a social safety net regardless of what the minimum wage is. You might even argue that the higher you make min wage, the more important social services are, because you have taken away the ability of low-skilled workers to support themselves.
- fwip 7y agoOn the contrary, places with a robust social service net don't need as strong labor protections, as they're able to decline to sell their labor.
- akvadrako 7y agoYou’re right - in that direction they are related. Since a safety net is always needed, there is just no good reason to have minimum wage.