9/15/2005

Minimum Wage, Max Mistake!

Terrific, some states are considering raising minimum wages. What happened to capitalism? Why are we trying to disrupt the very economic system that our country was founded upon? We discussed price floors in class the other day, minimum wage is a price floor, if you remember, price floors have the potential to cause surplus. Well, what is a surplus of employees called? UNEMPLOYMENT. And aside from unemployment, to compensate for the increase in labor costs, businesses raise the price of their products and everyone making above minimum wage is worse off! Why can't we let the natural laws of supply and demand run their course? In the long-run we would be so much better off. Oh, I forgot, in the long-run we die, give me a break! If we continue to mess with the system, we may be dead long before the long-run!
http://massdiscussion.blogspot.com/2005/03/minimum-wage.html

7 comments:

Jasmine said...

I totally agree with what you are saying. It is not fair for someone to be paid what they are not worth while causing others to be underpaid. I thought that was a great point on the price floor and how that creates a surplus of workers. It just amazes me; these concepts aren't very hard to comprehend, yet there are so many out there that don't have a clue. Many claim that they want to help the poor and needy but doing things like raising the minimum wage does the exact opposite.

Frank said...

I think it has something to do with meeting the bear minimum cost of surviving if minimum wage can give that. The rest go into the welfare system that we pay for to keep them off the street. Now does the assistance from welfare equal the minimum wage out come, I don’t know just a suspicion.

pramahaphil said...

In theory, you are correct, but theory unfortunately doesn't translate into a fair wage for many Americans. You are forgetting the fact that politicians gain very little votes from letting the uncaring invisible hand take care of business.

Dan said...

As the above comment pointed out, the minimum wage issue is not what is best for the country. The real issue in this area is what will help the politicians receive the most votes. It is kind of hard for a politician to come out and say that the poor do not "deserve" higher wages even if this may result in increased unemployment which leads to the government going into ever further debt with all the welfare they would have to give out. Also, if minimum wage is meant as the amount it takes to live off of, what's the point of going to school when I could be making 30Gs at McDonalds taking orders.

Morgan said...

I find not problem with the country having a "minimum wage". In Utah, minimum wage is about $5.15 an hour, hardly what I would call excessive. If no minimum wage was imposed, business owners could potentially hire people for slave labor. While minimum wage is hardly a liveable income, it offers a minimum amount of protection from workers being exploited.

maddy said...

For Morgan and anyone else that thinks a no minimum wage policy would "exploite" workers I must say that you've got it all wrong. Economic principles prove that not having a minimum helps, not hurts. I've worked with a few people that I can say weren't worth $4.00 let along $5.15. There attitude was horrible, their work ethic lacking, and they'd take a break no matter what. If there were no minimum wage, I beleive that it would force these workers to work harder to prove they were worth more. They would set their own "minimum wage" by what they are willing to do.

Dr. Tufte said...

-1 on Logan's post for a poorly formatted link.

-1 on Maddy's comment for a spelling error.

Hey Phil - nice to see you still checking in!

For the most part, you're preaching to the converted here.