5 ms·
Or they'll just hire more illegals. There's 11.5 million illegals in the US already [1] (edit: vs 3.3m legal workers on or below minimum wage [3]!), a large par
by crdb 11y ago
Or they'll just hire more illegals. There's 11.5 million illegals in the US already [1] (edit: vs 3.3m legal workers on or below minimum wage [3]!), a large part of which are probably doing "minimum wage" type jobs for less than minimum wage. Every rise in the cost of doing business legally will push a few more jobs towards the illegal, or law-abiding businesses to bankrupcy from lack of competitiveness. My entirely anecdotal evidence places the dishwasher illegal salary in big cities (my data is from New York in 2010 or so) at around $3/hour.
Different countries handle the issue of high minimum wage differently. Some countries have very thorough enforcement and drive the cost of everything through the roof, but end up with a more egalitarian society (I think Norway, where a beer costs as much as a large meal in neighbouring countries, counts). Singapore chooses not to have a minimum wage and to make it easy to import manual labour legally, and affords these labourers the same legal protection afforded any other resident. China uses the hukou system [2] to regulate the influx of unskilled labourers into more prosperous regions.
The US simply turns a blind eye to the rule of law when it comes to unqualified labour, which allows businesses to keep their costs low, and politicians to save face and pretend they did something "for the workers", whilst a side effect is increasing the stress on the legal unskilled residents which might even be a positive for politicians as they love a good crisis.
Conclusion: legal unskilled workers should fight for the law to be enforced, not for minimum wage to be legally increased. It would both remove competition and drive up demand for their unskilled work, and since there is no population explosion in the United States and legal immigration is incredibly regulated, should result in a natural rise of wages matching the higher cost of living in locations like Seattle.
[1] http://en.wikipedia.org/wiki/Illegal_immigrant_population_of_the_United_States http://en.wikipedia.org/wiki/Illegal_immigrant_population_of...
[2] http://en.wikipedia.org/wiki/Hukou_system http://en.wikipedia.org/wiki/Hukou_system
[3] http://poverty.ucdavis.edu/faq/what-are-characteristics-minimum-wage-workers http://poverty.ucdavis.edu/faq/what-are-characteristics-mini...
- Mikeb85 11y agoSo that's why, even with the recent strengthening of the US dollar vis à vis the Canadian dollar, things are still dirt cheap in the US compared to Canada. I do enjoy travelling down there to Montana - ski tickets are cheaper, gas is cheaper, and good beer is much, much cheaper (I seriously love the micro-brew scene in the US. Canada has a good micro-brewing scene too, but not to the same degree).
- crdb 11y agoI'm guessing there's other factors. For example, Australian prices are high because of labour (it's very hard to illegally immigrate to an island surrounded by oceans) but also because everything has to be transported over vast distances and many products have to be imported. I'd guess the much smaller market (35m inhabitants vs 320m - Australia has 22m), the weather, the distance from production centres and major ports, and so on would impact prices as well. As for beer it might be taxes, which Wikipedia says are amongst the highest in the world.
- Mikeb85 11y agoEverything you said is true (especially the taxes on beer). It was a little tongue-in-cheek, however I still am surprised that there are so many illegal immigrants in the US...
- greedo 11y agoSeriously? If you were a Mexican national, why wouldn't you come to the US? Better jobs, more safety, more hope for your kids. Mexico has so many problems that a trip across the border solves. I have no ill will towards anyone traveling north. It's a rational response to conditions in Mexico that seem intractable.
- Mikeb85 11y ago> Seriously? If you were a Mexican national, why wouldn't you come to the US? No, I'm more surprised that the US is so bad at dealing with illegal immigration. Do they tacitly accept it?
- greedo 11y agoHalf the voting public supports it, half opposes it. So there's no real movement on the issue.
- 11y ago