4 ms·

Surprisingly few in the US, given how much attention it gets. Something like 3-4% of employees earn federal minimum wage, a significant chunk of which are minor

Surprisingly few in the US, given how much attention it gets. Something like 3-4% of employees earn federal minimum wage, a significant chunk of which are minors.

nonethewiser 5y ago
You overestimate it. It's more like 2.3% as of a few years ago. https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm Minimum wage is a ridiculous concept. Why make it illegal to accept wages below certain levels? The only thing it does is increase unemployment.
- bigwavedave 5y ago
  > Minimum wage is a ridiculous concept. Why make it illegal to accept wages below certain levels? The only thing it does is increase unemployment. I'm not very strong on economics so mine is likely a foolish perspective, but I always thought minimum wage existed to prevent a race to the bottom where the bottom is asymptotic? Since there are companies getting away with paying minimum wage now, doesn't this indicate that they're fine paying as little as possible but also aren't lacking in employees? Corporations already have such one-sided power over job seekers (I know that I as a dev am guilty of forgetting this from time to time), I find it very difficult to believe that without a mandated minimum, there would be no shortage of companies eager to get away with paying even less. They're doing it now and being successful, why wouldn't they do it then and be successful? And we can say all day and all night how "the market will correct this, no one will work for them!" but clearly since there are people working for the absolute minimum right now, there would be people working for the absolute minimum then too; the only difference is that the current minimum is set by the government and this theoretical minimum would be set by each individual corporation. I may not have a lot of faith in the government, but I sure know which of those two I'd rather rely on in this case. But again, I have no formal econ education, so I'll confess I don't know anything about anything. Genuine question: how does minimum wage increase unemployment? Sure, if Alice was earning minimum wage, her boss could hire Bob at half minimum wage if Alice took a 50% pay cut, but how does that actually help Alice or Bob? Yeah, unemployment drops, but welfare claims and poverty levels skyrocket as Alice joins Bob in the welfare system. I just don't see it, but I'm clearly missing something.
droptablemain 5y ago
A much larger percentage earn very little. Looking at the data the way you are, someone making $8.00 an hour would not be included. There are many such situations, particularly in the food-service industry, where just-barely-above-minimum wage jobs are common.
pseudalopex 5y ago
Federal minimum wage is illegal in most states.

Surprisingly few in the US, given how much attention it gets. Something like 3-4% of employees earn federal minimum wage, a significant chunk of which are minors.

nonethewiser 5y ago

You overestimate it. It's more like 2.3% as of a few years ago. https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm Minimum wage is a ridiculous concept. Why make it illegal to accept wages below certain levels? The only thing it does is increase unemployment.

bigwavedave 5y ago
> Minimum wage is a ridiculous concept. Why make it illegal to accept wages below certain levels? The only thing it does is increase unemployment. I'm not very strong on economics so mine is likely a foolish perspective, but I always thought minimum wage existed to prevent a race to the bottom where the bottom is asymptotic? Since there are companies getting away with paying minimum wage now, doesn't this indicate that they're fine paying as little as possible but also aren't lacking in employees? Corporations already have such one-sided power over job seekers (I know that I as a dev am guilty of forgetting this from time to time), I find it very difficult to believe that without a mandated minimum, there would be no shortage of companies eager to get away with paying even less. They're doing it now and being successful, why wouldn't they do it then and be successful? And we can say all day and all night how "the market will correct this, no one will work for them!" but clearly since there are people working for the absolute minimum right now, there would be people working for the absolute minimum then too; the only difference is that the current minimum is set by the government and this theoretical minimum would be set by each individual corporation. I may not have a lot of faith in the government, but I sure know which of those two I'd rather rely on in this case. But again, I have no formal econ education, so I'll confess I don't know anything about anything. Genuine question: how does minimum wage increase unemployment? Sure, if Alice was earning minimum wage, her boss could hire Bob at half minimum wage if Alice took a 50% pay cut, but how does that actually help Alice or Bob? Yeah, unemployment drops, but welfare claims and poverty levels skyrocket as Alice joins Bob in the welfare system. I just don't see it, but I'm clearly missing something.

droptablemain 5y ago

A much larger percentage earn very little. Looking at the data the way you are, someone making $8.00 an hour would not be included. There are many such situations, particularly in the food-service industry, where just-barely-above-minimum wage jobs are common.

pseudalopex 5y ago

Federal minimum wage is illegal in most states.