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Fast-food employees are pretty much the canonical beneficiaries of a minimum wage law. Fast-food outlets can afford to spend more on salary (in that, they will
by ronaldx 13y ago
Fast-food employees are pretty much the canonical beneficiaries of a minimum wage law.
Fast-food outlets can afford to spend more on salary (in that, they will still be profitable and it doesn't affect their viability as a business) but have no inclination to, and therefore must be forced by law. As an additional bonus, they can't outsource their work to another, cheaper state. Great - the minimum wage law works exactly as intended, in this particular case.
It's less obvious that this applies to other industries. Will average households employ a domestic cleaner at minimum wage? Small, near-viable businesses where salary is the largest expense: what happens to them when the minimum wage increases? What happens to people who are thinking about starting businesses with that as a risk?
- rogerbinns 13y ago> they can't outsource their work to another, cheaper state They have done some of it for almost a decade http://www.nytimes.com/2006/04/11/technology/11fast.html?pagewanted=all http://www.nytimes.com/2006/04/11/technology/11fast.html?pag... They can also use more automation - "outsourcing" to machines. There are far more subtleties that the article didn't cover as you partially point out. There is a good article on cafehayek about it. (eg the nature of work done can change). http://cafehayek.com/2013/12/again-more-on-the-minimum-wage.html http://cafehayek.com/2013/12/again-more-on-the-minimum-wage....