Kimura
VIP Member
The nominal federal wage in the US is below the actual costs of a living wage. In a way, if we really look at it, its basically a workforce subsidy to employers. If we look at the OECD countries, the US minimum wage is on the lower end of the spectrum for the industrialized nations.
In our economy, which is pretty job starved, the supply-side will always dictate how the deck is stacked. We should view the federal minimum wage as a glaring example of how modern we consider our country to be. It represents what our society is willing to accept as a minimum wage. Any decisions about minimum wage should ultimately revolve around social policy.
If businesses, such as Walmart or other firms decide they dont have the ability to pay a minimum wage, then society as a whole can decide these firms shouldnt operate in the economy. Firms would have to restructure through investments to improve productivity so they can have the capacity to pay the legislated minimum wage. Increased wages also improve productivity and lessen employee turnover, so its a win-win situation for all parties involved.
" It represents what our society is willing to accept as a minimum wage."
Left-wing baloney.
I appreciate the erudite response. Please elaborate.