Minimum wage rate and labors’ market prices.
Products “Market prices” are affecting by various factors. Enforcement of government laws affecting regarding trade or contracts regarding a product, is often such a price affecting factor. Those using the term ‘market rates” applicable to a legally enforced minimum wage rate within a marketplace, are referring to a theoretical, indefinite, (i.e. not actually existing) price that excludes governments’ minimum wage laws as not existing.
Regardless of some persons preferences, governments’ minimum wage laws are existing factors applicable within marketplaces. Respectfully, Supposn
I'm not sure what your point is. Yes, the minimum wage is a factor in the market.
As I assume you are aware, we support a "free-market", which means not having controls on what voluntary exchanges people engage in, which would include the voluntary exchange of labor for pay.
Regardless, it is exactly because "Market prices" are affected by various factors including, but not limited to the minimum wage..... is exactly why we oppose the minimum wage.
If market prices were NOT affected by the minimum wage, then everyone would support a minimum wage. In fact, we would support a $100/hour minimum wage.
After all, why not?
But as you yourself just pointed out, people make contracts, and change their spending, and market choices, based on (among other things) the minimum wage.
That's the whole problem.
Years ago, on Huffington post, I came across this article written by a mother who was appalled by high babysitting prices. All she wants to do is go out with her husband, for a nice dinner, for barely 2 hours. And they wanted $200.
For what exactly? Sitting on the couch, while the kids watch netflix, and they text on their phone for 2 hours?
To heat up in a microwave, a meal she the mother had spent an time preparing?
Then she said something that is obvious to any free-market capitalist.
She said, with prices that high, it simply isn't worth it to hire a babysitter.
Instead, she will either simply not go out for the evening, or she will do kid swaps. A kids swap is where you make an agreement with another family, that you'll take their kids, so they can go out... .and then later they'll take your kids, so you can go out.
Yeah.... that's how it works. If the cost of the labor, simply don't make enough value to be worth it.... $200 for two hours away from home... Then you don't buy the labor.
If the minimum wage, is too expensive compared to the value of the labor, then you don't buy the labor.
That's the problem. The minimum wage doesn't increase the value of the labor. A burger flipper is not magically producing $50,000 a year in value, because you made the "living wage" $50,000 a year. (or whatever arbitrary number you make up).
And the result is, you cut off the bottom rung of the economic ladder. How do you get from being a burger flipper, to earning a decent wage? You have to work your way up.
I had a guy I knew who started off as a part time employee of an auto parts store. Part time at the store was $8/hour. Today, he is now a branch store manager, making $60,000 a year.
If you had made the minimum wage $15/hours, they likely would never have hired him, and he wouldn't be where he is today.