Minimum Wage - Does The Minimum Wage Hurt Workers?

Submitted by: AntEconomist 5 years ago in

Robbing the more needy to give to the less needy.
There are 103 comments:
Male 5,811
*minimum dammit.
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Male 5,811
Minumum wage is not just a thing that should be raised/lowered at a whim, it`s set where it is because of the market and the economy. I`m not saying it`s not low, I`m just saying it`s not very simple to just change minimum wage.

The bigger problem is that wages haven`t remained consistent with inflation. If this were the case, people wouldn`t be complaining about this, likely.
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Male 8,689
Darkolin-"Where the drat are you getting a 10 cent hamburger?"

Please don`t vote. At no point in the video was a 10 cent hamburger mentioned.

We`d explain it to you, but your head would probably explode.
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Male 2,850
@Samsquanch

"No...what a business will do if he`s forced to increase minimum wage is increase his profit margin to cover the cost."

For some businesses, and their customers, that may be a problem: the businesses where the labour costs are a high proportion of the cost of the finished product.

I can`t imagine this applies to all products. For those that have a small percentage of labour cost, the price rise would be minimal.

And the implied suggestion that the benefit to the worker will be robbed in the end by prices going up at the same rate as their pay is simplistic: it will only hurt them if the prices of the things they personally need to pay for go up, and I have yet to see anyone crunch the numbers to establish that, for instance, food, shelter and utilities have a large proportion of labour cost.
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Male 54
Where the drat are you getting a 10 cent hamburger?
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Male 6,227
@Ollie: Don`t be such a grumpus. There`s a whole world of ponies out there to enjoy. =^.^=
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Male 25,416
yes yes it does...
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Male 197
The only reason you can buy that $1 cheeseburger is because of the minimum wage, so stop complaining. If you dont like getting paid $10 an hour do something that is of value and make some real money.
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Male 226
"minimum wage over here is $15.51hr with 5.2% unemployment rates
Selous Male, 30-39, Australia "

That just means inflation caught up with your last minimum wage increase.
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Male 17
This video assumes all business owners reward workers purely on the merits of their work or reward workers at all, which is complete garbage. Everyone knows someone who got a job because they knew the right person. Everyone knows someone who works harder than anyone else and gets screwed over. The real reason raising minimum wage hurts workers is because the cost of living would go up right along with the minimum wage. No business, especially larger businesses, would be affected at all because no CEO would allow profits to be impacted for any reason. Cost to produce product goes up, cost of product goes up.
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Male 787
I wish I were born 50 years ago.
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Male 15,832
[quote]Sorry, Ollie. Not buying it for a second.[/quote]
Fine. Stay stupid. See if I care.
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Male 10,338
People should be paid for the jobs they do, not $10/hr to flip burgers and drop fries.

Lower wages for teenagers jobs, = higher wages for other jobs.
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Male 41,114
vv Quite right @CoyoteKing! And all those already making more than minimum, whose wages did NOT go up? THEY get to pay more for everything too! So their earnings effectively DROP.
Not nice!
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Male 2,988
He forgot to mention that now that he has to pay the workers more and thus the company will see less profit they most likely have to raise the selling cost of their products. this leads to an overall increase in the cost of living and thus makes the minimum wage just as crappy as before but now with inflation!
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Male 8,689
antagonizer-"if you have 3 shifts that need to be filled, you need three people"

Obviously you`ve never owned or run a business. Simply put: the cost of labor becomes too high, the labor force will be cut, the remainder will be required to take up the slack.

thubanstar-"Can`t Live on Minimum Wage"

And you`re not supposed to. Minimum Wage jobs are for high school students learning about working for a living and getting a little extra money. If you`re 40 and only making minimum wage, the problem is not with the employer or the job market.

An employee MUST make the company money. When he/she gets to the point where they he/she fails to do so, they are eliminated.
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Male 6,227
@OldOllie: Oh, cry me a river of crocodile tears. I`m sure you openly weep every night thinking about the unemployment rate of America`s black youth.

Seriously, Ollie, get a little history under your belt. The mill owners in Massachusetts tried to make the same arguments about 8- and 9-year-old kids: Those advocating child labor laws, they said, were seeking to destroy poor families by taking away the oh-so-important rights of children to work.

Sorry, Ollie. Not buying it for a second.
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Male 15,832
[quote]What a steaming pile of propagandistic nonsense. The far right made the very same arguments when minimum wage was first proposed. They said it would ruin businesses; hurt the laborer; bankrupt entrepreneurs; yadda yadda yadda.[/quote]
You`ve never actually paid attention to the minority youth unemployment rate over the past 40 years, have you? I can only surmise that you don`t give a rat`s @$$ about them.
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Male 6,227
What a steaming pile of propagandistic nonsense. The far right made the very same arguments when minimum wage was first proposed. They said it would ruin businesses; hurt the laborer; bankrupt entrepreneurs; yadda yadda yadda.

I`ve got a concept that eludes you, AntEconomist. Why not raise the price of each burger 10 cents? Personally, I`d much rather live in a country with slightly more expensive fast food and a lower class that makes enough money to live on as opposed to a country of working poor and 99-Cent Value Menus.

If AntEconomist thinks a completely unregulated form of capitalism is utopia, why doesn`t he pack up his bags and move to a Third World country? No pesky minimum wage laws, no child labor laws, and no worker safety regulations to get in the way of the law of the jungle he seems to tirelessly advocate.
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Male 40,246

@ Aburnjunky - A friends wife got her masters in business administration. Two years she was unable to find work until she finally got a job as an assistant manager at a McDonalds. Yes, the liberal arts and history and literature degrees won`t get you work, but the other "stable/reliable" degrees like teaching and nursing and business are no guarantee.

You hear about a shortage of nures, but many are unemplyed. The only one I know took 18 months to find work and it`s really low pay at a nursing home.
Teachers? Those are being laid off, not hired.
Business degree? The middle-management that got pink-slipped. Starbucks alone laid off all thier regional managers, district managers, etc. My friend Patrick used to work for them. 3 years unemployed now.
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Male 10,338
"I know a person who is educated but can`t find work."

What is he educated in? Maple Syrup?

Just kidding. This may not apply to your friend, but it makes me mental when people say "I have a college degree and I can`t find work!" More often than not, I ask whet they have a degree in, and it turns out to be some liberal art, or something ridiculous like paleontology or something.

NO poo YOU CAN`T FIND A JOB!
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Male 40,246

If earning more money is so bad, why are billionaires so greedy?
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Male 762
Haha, offer them a raise! Yeah, if you are earning minimum wage your employer views you as a replaceable slag, no matter how hard you work. Republicans are under the impression that people who work hard are rewarded, and the richest are the most hard working. Bullpoo!
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Male 7,123
Is this guy`s target audience the slow-witted?
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Male 226
"Minimum wage in the US on most states: $7.25/hr ($1160/mo)
Rent-Range of one-bedroom apartment in Los Angeles according to rent.com: $650-1200
Average rent of one-bedroom apartment in Los Angeles according to craigslist: $480-3000

Looks not-ideal but liveable to me"

You`re crazy if you think even the low end of that is `livable`. Unless the person has no electricity or gas, walks to work, and hunts their own food.
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Male 4,745
Draculya:
"You need to cut assistance programmes and minimum wage and recognise that some people in some parts of the country can`t be supported at utopian standards."
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utopian standards?!? Minimum wage is so low and the cost of living is so high, that you have to live in poverty. I know a person who is educated but can`t find work. They are working two part time, minimum wage jobs (because that`s all that`s out there now) and have to live off of food banks etc. just to get by.

If you get rid of minimum wage, what happens is that all the employers will drop wages down to the least amount they can and poverty will be so widespread that people will be starving to death. Food banks won`t be able to keep up with demand. Crime will increase a million times over.

The fact is, employers are greedy and will only pay what they have to pay.
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Female 2,602
[quote]The source for that video could not look more dubious.[/quote]

Agreed. Though I would point out "the source" and the "the person that posted this video and several others exactly like it" are one in the same individual.
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Male 792
No...what a business will do if he`s forced to increase minimum wage is increase his profit margin to cover the cost.
So...If Bob was earning the company $2/hour when he was earning $8/hour, the manager will increase his prices to allow him to still earn $2/hour at $9.50/hour wages.
Hello inflation.
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Female 2,602
Christ, not this guy and his ridiculously-uninformed, self-publicising opinion pieces again. And he`s still wearing the same "black-and-white porno" outfit as the last time; even his skin is a shade of grey. Did he film these all in the one day, or does he just never change his clothes?
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Male 5
Wow, what a fail video. Typical ignorant business-folk thinking their libertarian view trumps all.

Any self-sustaining company should make just as much in revenue as their employee`s wage, if not around 75% at the very least. And that should only be calculated after generating the entire company`s revenue, not on what the individual worker can generate.

If this aforementioned dippoo burger joint was pulling in revenue equal to 40% of their employee`s wage, how would they be able to sustain themselves as a business, I wonder? They either need very low overhead costs, or other multiple sources of generating revenue.

This video is also BLATANTLY not taking into regard the economic boon of increasing minimum wage. If lower-wage folk had more money, you`d think they`d be willing to buy more burgers, amirite?

And guess what else? Lower-wage folk (which make up a massive amount of the U.S. population at the moment) would generate more tax revenue if they g
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Male 181
only $1.00/hr more than his staff even though he has more responsibilities.

In terms of unemployment, the numbers won`t change. The slow employees are fired and an equal number are hired to replace them. Ditto for the employers; they`ll simply increase prices to match their increased labor cost.
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Male 181
profit margin.

Look at the McDonald`s McDouble. It used to be the Double Cheeseburger, but then they took out one slice of processed cheese and sell it for $1.39 + tax. The Double Cheeseburger costs $1.79 + tax. Meaning the slice of processed cheese is retailing for $0.40, but if you want to add a slice of cheese, they usually charge $0.50.

And as for labor, the restaurant needs X staff for Y customers/sales. If minimum wage goes up, they aren`t going to cut staff, because they would have slower production time and lose business. So the slowest guy gets canned and the other two get kept on staff and they hire another employee to replace him.

Where you see it start to hurt is the positions just above minimum wage as you start to see less compensation for more work. The manager gets, say, a $2.00/hr. premium above normal staff. That premium doesn`t carry over if minimum wage goes up. So if the minimum wage goes up by a dollar, the manager is now making
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Male 181
Crabes - "Just let the Chinese handle those boring,low paying jobs and American get higher paying jobs that need education and provide a better lifestyle. You guys does`nt know what its like to work more then 70 hours a week just to pay for your rice."

Please tell me you`re being sarcastic? I didn`t know that North American college grads were flipping burgers rather than making six-figure incomes as executives because of personal choice or a kind of embargo against outsourced labor. As we all know, there are vacancies in high-paying positions all over the place willing to hire anyone who gets their 3-year piece of paper.

As for the burger analogy, the $0.10 a burger profit is completely ridiculous. Typically as a rough guide you multiply your food cost by 3 to give you your retail price. This accounts for food cost, expenditures (e.g. wages, facilities, utilities), and profit. If minimum wage goes up, either the owner loses money or they raise prices to
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Male 15,330
"Just let the Chinese handle those boring,low paying jobs and American get higher paying jobs that need education and provide a better lifestyle."

The Chinese have limitless capacity to absorb low to medium paying US jobs and pay their people $700 to $3000 per month. Jobs that a Chinese can`t do are getting fewer and fewer. Soon they will be doing more and more of the jobs that are well paid in the US. But at least for now, the US minimum wage and US social security/ tax burden is their biggest boost.

The point of all my posts in this thread is that I cannot for the life of me understand why you`d want your social underclasses to sit idle drawing social security. You need to cut assistance programmes and minimum wage and recognise that some people in some parts of the country can`t be supported at utopian standards. There is no such thing as entitlement.

America is broke on so many levels. I`m just telling you to fix it.
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Male 1,284
Just let the Chinese handle those boring,low paying jobs and American get higher paying jobs that need education and provide a better lifestyle. You guys does`nt know what its like to work more then 70 hours a week just to pay for your rice.
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Male 15,330
@OldOllie you`re funny and correct at the same time.

"minimun wage is too prevent america from becoming China"

Correct; it simply sends all labour based commerce and manufacturing to China. The only employment positions that are unaffected are those that carry a reasonable profit margin and must be delivered to the domestic market.

The Chinese say "Thank you America" for all the jobs you have created over there, all the personal and government debt you now owe them to support the "American" lifestyle of your unemployed and for all the nice waterfront properties that are now owned as summer homes by wealthy Chinese industrialists. You may now clean their pools and make their beds at $7.25 an hour. Make sure you do a good job! There are plenty of other Americans where you lot come from.
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Male 221
A job that pays less than you can live on forces people onto welfare support so what end up happening is society ends up subsidizing the business.

The example is stupid anyway, I might as well say if a pull a dollar out of my ass every 10 mins I will have $6 after an hour, its nonsense
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Male 550
Just for info:

Luxemburg minimum wage: 10 Euro/hour =13 USD/h
Luxemburg unemployment rate: 5.9%
Luxemburg unemployment payments: 80% of minimum wage
(guaranteed by the state)
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Male 835
This jackass assumes that deadweight is fired and hard workers are rewarded. Anyone who has ever worked in a major corporation knows that those are rare happenstances.
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Male 2,516
@LillianDulci
Food, transportation, and maybe some utility bills are a lot? Because those are all you really need.
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Female 2,674
jendrian, there are WAY more expenses than simply rent. O.O
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Male 1,010
This is the worst propaganda crap ever. I remember this idiot from another video, where he assumes the macroeconomic thinking of a five year old.

This is still not even worth commenting, as any fool knows that employers aren`t throwing money out the window today by hiring unnecessary workers, hence minimum wage will only force employers to pay whoever they`re hiring today a decent wage.

The amount of workers reflect the demand for labor, not how much money the employer has. I have a hard time understanding why iab choose to keep posting this morons home cooked quasi logic. Are you being ironic?
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Male 15,330
Here`s the answer to the minimum wage: Nude housekeeping
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Male 2,422
The video makes an assumption that Carl won`t be fired regardless and the other two forced to pick his slack so the owner can pocket it. Businesses exist to create profit, not jobs. If the owner can get away with it Carl will be fired every time regardless of what the minimum wage actually is. That`s how it works in the world outside of economics classrooms.
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Male 1,252
well great..keeping people below the poverty line decreases unemployment, also decreases consumerism ergo growth for everybody. this might be a good hypothesis if there was free education and health care for everybody.
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Male 2,516
Minimum wage in the US on most states: $7.25/hr ($1160/mo)
Rent-Range of one-bedroom apartment in Los Angeles according to rent.com: $650-1200
Average rent of one-bedroom apartment in Los Angeles according to craigslist: $480-3000

Looks not-ideal but liveable to me
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Male 1,627
yeah right, making the owners look like the victims. workers are in place to cover demand. if demand goes down, less workers are needed to cover. if demand goes up, more workers are hired. thats all.

they make more money off the worker then they are paying the worker per hour.
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Male 15,330
"So totally side-stepping the issue of... Can`t Live on Minimum Wage."

That`s the other side effect. Minimum wage becomes the default wage for `labour`. Workers have to justify why they should be paid special extra money like to value additive people like revenue generators, people with scarce skills, and useless lazy people from the third world who are hired as a bribe to their daddy who has influence with the communist party.

Minimum wage transfers wages from lazy domestic people to hardworking immigrants. When immigrants are not productive enough, the business goes to China, India, Indonesia, etc. where there is no minimum wage.

It doesn`t matter that the product is made in China. The capital providing class still gets their dividends.
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Male 749
[quote]minimun wage is too prevent america from becoming China[/quote]

While touring a dam project in china, Fredrick Hayek (I think) asked why they weren`t using more heavy equipment, rather than lots of men with shovels. He was told that they wanted to keep employment up. His response was to ask them why they didn`t give the men spoons instead of shovels.
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Male 15,330
"When min wage got raised to $7.25 (in my state), my mother`s wage remained the same. How is that fair? It just creates inflation."

If one`s productivity is unprofitable at minimum wage, sorry chump, you just missed the poverty cut.

If you earn close to the minimum wage, inflation caused by minimum wage increases will erode your savings helping to keep you borderline poor.

If you earn a bit more than minimum wage, much of your education (and debt) was wasted. You social security and taxes help support the rejects that missed the poverty cut.

If you earn enough money to afford a tax planner, you get to pay little or no tax and get your afternoon Martini served by a pretty young college grad with debt instead of an old person or a retard.
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Female 836
So totally side-stepping the issue of... Can`t Live on Minimum Wage.

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Male 15,330
The minimum wage is the mechanism by which politicians and economists ensure they are not served meals by the uneducated or people with Down`s Syndrome and mentally challenged.

They should make the minimum wage $200,000 pa. Then we`d only have investment bankers and cosmetic gynaecologists in the workforce. They would then pay everyone else`s social security cheques.
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Male 319
The source for that video could not look more dubious.
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Male 3,668
Minimum wage jobs should be low.

Min wage jobs are for the people with no skills whatsoever, eg high school students/dropouts, college student/dropouts, etc.
Raising min wage lowers people`s initiative to become skilled workers.

When min wage got raised to $7.25 (in my state), my mother`s wage remained the same. How is that fair? It just creates inflation.

Now there needs to be some sort of min wage that is flexible to be adjusted to inflation, no one should disagree with that, but to say min wage needs to be raised even further is an idiocy.
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Male 330
@Skine:

Someone fell asleep in their economics class...

Things like rent are FIXED (or in other words, SUNK) costs. They should always be ignored in the short term because there`s nothing you can do about them. In the long term, you could move to a different building with a different rent cost, but in the short term you never pay attention to sunk costs like rent or taxes. If you do, you`re going to be a bad business manager.
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Male 446
Raise the price of the burger by a nickel; if it`s a good burger, people will pay. Most of the profit`s on the pop anyways.
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Male 340
"Well at least their children are employed." Because they only have 1, and put them to work in a shoe factor (hut) at age 3. Employment at its best?
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Female 1,259
I don`t know About those burgers but, i know I make my boss a poo load of money just by cleaning teeth all day...then again my boss is a dentist and I dont make minimum wage...
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Male 10,855
[quote]rent, taxes, and the rest of the overhead[/quote]

Well considering that empirical data was cited to show how minimum wage effects employment the counter-argument is moot.
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Male 10,855
[quote]minimun wage is too prevent america from becoming China[/quote]

Well at least their children are employed. But how about a better alternative like Earned Income Tax Credits? 15% Tax rate on everyone above a certain threshold and (the minimum wage for instance) and subsidize the lower skilled workers. That oughtta make you socialists happy.
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Male 719
But really, even those who know nothing about business should know something about supply and demand.

Honestly, if the person makes a $0.10 profit per burger, then he needs his demand to be equal to his supply at all times.
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Male 719
When you oversimplify something, you never get an accurate picture of it.

In this example, you have to ignore fixed costs (rent, taxes, and the rest of the overhead) in order to get a simple cost per burger/hour.
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Male 2,516
@sirwolf, what I was saying is that for a burger priced at the same level as McDonald`s mega-cheap sh*tty burgers, they would be paying 17 000/mo/worker on marketing, taxes, and other costs (not including salaries) to keep only 10c per burger.

My point is that if he`s exaggerating how little the owner makes, we should also exaggerate how bad this hypothetical owner is at running a burger shop
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Male 6
@jendrian I ran a pizza place. Food, Labor and Coupons (FLCs) cost about %20. Marketing, plant costs, taxes, support salaries, admin costs, etc etcate up the rest.

The profit to the corporation (owner) was around small (Ie seem to remember like .5%) We never felt sorry for him, though, he kept his wife happy.

The point here is that no matter what, for a business to stay profitable, they have to keep FLCs at a target level.
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Male 1,284
this is bs,if business could hired you freely they would, minimun wage is too prevent america from becoming China
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Male 6
"Yeah like businesses would continue (Substitute could afford to for would) to pay below average production worker salary out of the goodness of their hearts
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Male 83
no one can by the burgers if no one can afford it.

The argument in this video is so old and misses the point so baddly, that it`s disappointing to see it again.
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Female 2,549
Yeah like businesses would continue to pay below average production worker salary out of the goodness of their hearts until they are forced to see logic when minimum wage is enforced.
All manufacturers have required production standard from their employees. They hire additional people when they have to and they fire them when they don`t need them. There are no laws making businesses hire a certain number of people. But the people they choose to employ are protected from modern day slavery.
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Female 2,674
markust123, but why should a teenager who`s working to buy an iPod or whatever be able to be hired cheaper than an adult who`s trying to feed their family? Corporations will take the cheaper work and poor adults will have a harder time finding work.
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Male 2,516
even if it was the cheapest, most horrible burger in town (McDonald`s dollar menu) that still means they`re spending about $17000/month per worker making 9.50 as minimum wage in order to only keep 0.10c per burger.

Some how, the argument is not only unrealistic, but stupid at figuring out how to justify it.
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Male 40,246

Suppose Suppose Suppose
Suppoe the profit was $5.00 per burger.

None of this matters if a Republican gets the White House because they want to eliminate minimum wage.
Al and Bob will be paid $3.00 per hour and Carl will still be unemployed.
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Male 2,516
@chunkiemonkie: so where does the rest of the money go? we already know that from a burger that costs $3, he`s keeping 0.10c, so for every 100 burgers there`s 280.50 dollars unaccounted for. Every hour.

If your business stays open 8 hours, they`re spending $2244/day, or $58344/month.

I don`t know about you, but for burgers, that sounds like horribly stupid management
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Male 5,200
I do think people should be able to hire teens for less than minimum wage. Adults are taking the minimum wage jobs because they are more responsible. What does that leave us? A new generation of people that have bad work habits because they didn`t work as a teen. I learned how to multitask at A&W.
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Male 669
jops, the owner KEEPS 10 cents from each burger for himself, the burger does not actually cost 10 cents.
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Male 1,931
This is all from the point of view of the corporation, which I give not a single flying drat for. Every human being deserves health care, food, and a clean living environment.
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Male 5,200
Ten cents profit on a burger? Your stupid argument is already lost.
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Male 689
i want to know where this $.10 burger is. lets use real world money and do the exact same experiment. bob makes 100 burgers an hour, the burgers cost $3 a piece, so he produces $300 worth of food an hour. minus the cost of each burger($1) and we are down to $200. he only pays him $9.50/hr so using the same logic the owner makes $190.50/hr. does this still make sense? no it doent because you cannot generalize it that much. this guy is just a right wing propagandist that wants you to think people would be better off making slave wages. companies are in it for the profit and dont give two poos about the worker anymore. they want to pay you less and if they get this passed they will, simple as that.
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Male 15,832
[quote]minimum wage over here is $15.51hr with 5.2% unemployment rates[/quote]Selous Male, 30-39, Australia

Your population is less than 1% black. What`s your point.
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Male 2,085
Get tired of the this minimum wage argument. It was never meant to be a living wage. It`s so McDonald`s will pay a fair wage to it`s teen-aged work force.
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Male 934
Side Note: This is also an example of how taxes can cause inflation. Taxes are expenses, so when you increase them, a business must compensate by adjusting it`s prices to meet the requirements of it`s overhead and profit projections. By increasing taxes too much, you can also devalue the dollar essentially. By the same token, not enough taxes, and you can`t run the government.

Right now, the problem isn`t too low of taxes, it`s too high of federal spending.
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Male 646
This is why no one in my family has voted for a drating Republican since at least the 1920`s.
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Male 934
Actually it`s a bit shortsighted. Here`s how it really works:

Wages goes up => business expenses go up => prices go up = X. Take X times all the businesses that employ minimum wage workers, and you get inflation.

This is why any increase in minimum wage is calculated usually in an attempt to keep up with inflation. It doesn`t always come out even, but right now it`s about in the middle of where it`s been in adjusted dollars.


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Male 17,511
A high minimum wage doesn`t help anyone, except for the unions. Unions always seek a higher and higher minimum wage to base their next contract wages on, regardless of how that may effect productivity. Unions don`t give a crap about minimum wage workers, they don`t even bother to try and unionize them. Higher union wages = higher union dues = more money for the union bosses. The more money a union gets the more they have to grease politicians with, in return for legislation to raise the minimum wage.

It`s a never ending inflationary spiral of union greed, that costs taxpayers and consumers ever and ever more.
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Male 65
Moral of the story: Don`t suck at your job.
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Male 508
Pure BS. First, if you have 3 shifts that need to be filled, you need three people, regardless of how much or how little they produce. Most businesses have high volume times and low volume times. Even if they aren`t making money, they still need to be open to retain a client base.
Second, suggesting you`re better off in the hopes of getting a raise, or better job is idiotic. NOBODY headhunts minimum wage employees and even fewer will offer a raise to someone they know lives paycheck to paycheck and needs a job.
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Male 2,516
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Male 2,591
That is a GROSS underestimation of actual profits made off workers. I`ve been in business long enough to know FOR A FACT that the majority of companies are only paying their workers around 1/3 of the profit they actually make off each working hour. Meaning this company is making around $33 per hour per person yet paying the worker only around $10.00 or $10.50 per hour. This is total horse shxt. No company could survive making 10 cents from every working hour. Please do not believe a damn word in this video. If you`ve ever managed ANYTHING you KNOW what I`m talking about.
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Male 1,197
minimum wage over here is $15.51hr with 5.2% unemployment rates, pretty clear that those 2 factors have very little to do with each other
i wouldnt get out of bed for $8hr, much less $9.50hr
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Male 171
This video makes a very logical point.
However, since its based on invalid assumptions (it namely assumes that having employees generates almost no extra profit for the owner), the valid logic from that faulty assumption leads to an invalid, faulty conclusion.
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Male 373
How does this help with my boredom?
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Male 303
The min wage makes the richest people poorer (hence why they spend so much time and money arguing against it) and the poorest richer. By making the standard for wages higher you increase disposable income which increases tax revenue and aggregate demand, while decreasing welfare payments. This however is in return for a short term rise in welfare and unemployment, so not advisable during a financial downturn, but a good idea during a boom when your approaching, or reach, transitional-only unemployment.

However a better implementation than sudden increases is to raise the min wage ahead of inflation year on year, minimising short term effects while allowing long term effects to kick in at a good pace. But politicians like to make big jumps as that`s more of a vote winner as most people don`t get macroeconomics.
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Male 226
"I thought the real issue is that a min wage makes everybody poorer."

That`s accurate as well. At a macroeconomic level, increasing the minimum wage does nothing but cause inflation and unemployment.

There may be more dollars in the hands of some workers, but there is less wealth.

This doesn`t hurt the `evil businessman` because he`ll just fire his least productive workers and/or raise the price of his product.
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Male 10,440
[quote] makes everything cost more [/quote]
That`s a tiny cost when compared with the benefit.
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Male 41,114
Raising minimum wage makes everything cost more which harms poor people the most. Vastly disproportional.

And how does it affect illegals? THEY still work for slave wages, and owners are MORE likely to hire them with high minimum wages...
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Male 3,275
What happens when clientele drops, and the need for burgers slips to 50 burgers an hour? After a week, one would have a backlog of rotting burgers- Oh I forgot, that`s what people eat anyway- old, stale, pre-made crap.
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Male 761
Better flip those burgers faster
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Male 10,440
The least competent would be fired anyway regardless of what the minimum wage is, since the least competent can always be replaced with the sightly more competent. This is a question of a tradeoff between what causes more overall good or less harm for the lower class.

I would argue that it does more harm only in a situation where most of the population is at minimum wage. Otherwise most people are completely unaffected by it, and the poorest are, in fact, better off, since they often don`t know the value of their work.

If there was no minimum wage it would be easy to exploit the masses into working for much less. It would also be close to a pure capitalism, which would of course be doomed to fail.

Not only that but people make disproportionately more than their worth at every level. It`s one of the reasons why there is always some unemployment.
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Male 10,094
If you sell 310 burgers an hour and only make $7 an hour in profit you suck at life.
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Male 15,832
The minimum wage hurts EVERYBODY.
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Male 76
I don`t see a problem with this at all. The least competent workers gets laid off, as they should be. The least competent workers are always the first to go anyways, minimum wage increases or not.
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Male 220
Card and Krueger disproved this crap years ago.

The assumption: the owner would still have kept Carl. If a company hires Carl, that company would have been crushed by companies with more productive workers, and Carl would STILL be out of a job. It`s not like companies that have more productive workers stay static.

Raising the minimum wage is nice, but the levels politicians raise it to barely makes a difference either positive or negative. The answer is to make low-productivity workers, like Carl, into productive workers. And if there`s something preventing that, for example, mental handicap, then a subsidy to the employer, or a min wage exemption + direct subsidy to the worker, can be used.
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Male 2,841
I thought the real issue is that a min wage makes everybody poorer.
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Male 374
Link: Minimum Wage - Does The Minimum Wage Hurt Workers? [Rate Link] - Robbing the more needy to give to the less needy.
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