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0 sats \ 6 replies \ @Solomonsatoshi 10 Dec \ parent \ on: Minimum Wage Laws Can't Repeal the Laws of Economics econ
You conveniently ignore the point that precedes the one you cherrypicked.
Minimum wage laws recognise the asymmetric power imbalance that often exists between workers and employers.
With no minimum employers will pay the least amount amount possible.
Look at economies where there is no minimum wage- like India- the result is wage slavery and chronic poverty.
I ignored that point because its ultimately irrelevant.
Why would setting a minimum wage stop employers from paying the least amount possible? Or better yet, why does any employer pay more than the minimum wage?
Do you have any comment at all on the actual point I made, regarding the pricing out of less skilled workers who cannot generate enough value to make employing them at the minimum wage profitable?
Demonstrate a causal relationship between the lack of minimum wage in India and the poverty of that nation.
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It is not irrelevant only if you have zero concern for the well being of minimum wage workers who are generally not in a strong negotiating position- the young, the disabled the unskilled do not have strong bargaining power- thus minimum wage helps to provide a minimum level of income.
Why would setting a minimum wage stop employers from paying the least possible amount?- because that is precisely what a minimum wage can do! (do you have a problem with basic logic?)
Regarding the pricing out of workers I would reply those workers who are least able to provide value to the employer will be the first to be unemployed - with no minimum wage the employer will logically seek the most productive worker and pay the least amount that the supply of workers will accept- no minimum wage is a race to the bottom leading inevitable to poverty and exploitation.
For the young inexperienced and disable to gain employment would require a fully employed workforce and a shortage of more productive workers to already exist- this is best achieved by setting a minimum wage which results in low wage workers spending more into the economy stimulating the economy and driving higher employment- can you respond to this point?
Please name an example of where there is no minimum wage and where workers are not exploited? SILENCE.
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My friend, it is clear your heart is in the right place but that you really haven't actually thought through the logical consequences of setting a minimum wage.
There is no example in history of where price controls work. Price controls ALWAYS lead to shortages or surpluses of the relevant good.
Wages are merely the price of labour. Setting a minimum wage will lead to a surplus of labour, meaning labour that is not utilised. This is another way of saying unemployment.
This is a clear and unavoidable conclusion that you will reach if you follow through the basic logic.
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Your basic Libertarian logic is tragically flawed and I have already explained why.
You have swallowed flawed and simplistic dogma hook line and sinker and thus cannot respond to let alone credibly refute the points I have raised many times already.
Yes, in general price controls will tend to distort markets and lead to an corresponding increase or decrease in demand or supply.
But in the specific case of wages and especially the wages of low income earners, there is a considerable and well evidenced logic and phenomenon showing that increased minimum wages drive increased demand across a wide range of goods and services- because low income earners spend the vast majority, if not all of their incomes.
So the increased consumption of goods and services that an increased minimum wage results in leads to increased demand for those goods and services, increased demand for workers to be employed in the supply of those goods and services and therefore an increased employment and increased overall level of economic performance and well being, not only for the lowest paid but for many including employers who provide goods and services to the least well off members of the economy and society.
Wealthy luxury goods and services providers may not enjoy such bounty but the least well off and those who provide them with goods and services will thrive. That is imo a desirable result. Lack of minimum wage will lead to the opposite result of greater inequality- this is seen in the most corrupt and depressing regimes and nations of the world - high levels of inequality result is huge wastage of human capital, chronic poverty, desperation and spoilage of human potential (for example think of the inequality of education opportunities between wealthy and impoverished families) and a small elite of fat greedy parasitic overlords who usually also capture the political process to perpetuate their rentseeking greed.
In addition the inherently relatively weak position of low income workers in relation to employers in terms of negotiation will where no minimum wage is set result in wage slavery and those workers living lives of abject and debilitating poverty. There are many many examples of this throughout history and in the current day- as I have asked several times-
Where in the real world is there no minimum wage but a healthy functional economy?
I have made these points many times already and now elaborated upon them further- you have failed every time to address let alone refute them...instead you return time and again to repeat your simplistic Miserian dogma that allows no exceptions and paints an illusory world of black and white but flawed logic- it does not and cannot address the facts and issues I have raised...which factor in the complexities, quirks and uniqueness of human nature, and political and economic realities.
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That's all well and good, but let's be real here. I first responded to you refuting a specific point you made, and you've not actually commented on that at all.
The problems with a minimum wage are clear, inescapable conclusions that become apparent after any degree of serious thought.
Repeating the same points over and over at me won't change that, no matter how good your intentions.
I shan't entertain this any further, so if you'd like the last word, be my guest...
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Absolute nonsense - I have refuted the initial point you made repeatedly.
It is you have have failed to respond to my demolition of your initial point with any credible retort.
You seem incapable of doing anything beyond parroting Miserian dogma.
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