This is the other philosphical part of the debate. What is the purpos of the minimum wage? Is it really some number someone cooked up that is suppossed to provide some basic standard of living? Is that what it even should be for? Should such a thing even exist in the first place? I think we both agree the federal minumum wage isn't going to meet a standard of liveing requirment. In fact I doubt much those various state minimum wages do either.
Why is there this conception that the purpose of the minimum wage is to provided a standard of living? Again WHO is it suppossed to provide this bare minimum to? Single, no dependants? Families? Single mothers?
Again if we assume that is the purpose of a minimum wage, we are no where near meeting that. Think of it. I mean really think about it. The amount of money required to meet your needs. Can you imagine the bearacracy that would have to be created to figure out how much should be alotted for basic needs? It would have to be different from place to place. It would have to fluctuate over time. Technically it would not only have to rise it would also be required to go down. After all gas costs less than half what a did just a few months ago, so now my need is less, shouldn't my wage be adjusted accordingly.
This logisitcal nightmare is just part of the reason we shouldn't even be going down this road.
Here is the Pro list i found that covers alot of what i had read earlier last year....
Support
Supporters of the minimum wage claim it has these effects:
Helps small businesses as well as big businesses.
Increases the standard of living for the poorest and most vulnerable class in society and raises average.
Motivates and encourages employee to work harder. (Contrast with welfare transfer payments.)
Does not have budget consequence on government. "Neither taxes nor public sector borrowing requirements rise." (Contrast with negative income taxes such as the EITC.)
Minimum wage is administratively simple; workers only need to report violations of wages less than minimum, minimizing a need for a large enforcement agency.
Stimulates consumption, by putting more money in the hands of low-income people who spend their entire paychecks.
Increases the work ethic of those who earn very little, as employers demand more return from the higher cost of hiring these employees.
Decreases the cost of government social welfare programs by increasing incomes for the lowest-paid.
Does not have a substantial effect on unemployment compared to most other economic factors, and so does not put any extra pressure on welfare systems.
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I understand, how a minimum wage too high could hurt the economy and businesses...it only makes sense that it could....however, i also believe that many of these businesses have their minimum wage employee too low and in the united states, when we raise the minimum wage, we do it in increments, slightly at each interval...it is spread out over a couple of years, not done all at once.
Also, it would be nice to think that employers would automatically give their employees the most they could and still be profitable.....unfortunately, we do not live in that kind of world, at least not with many of the bigger companies that rely on minimum wage workers...
also, i found this on wikipedia as one of the concerns....
An alternate view of the labor market has low-wage labor markets characterized as monopsonistic competition wherein buyers (employers) have significantly more market power than do sellers (workers). This monopsony could be a result of intentional collusion between employers, or naturalistic factors such as segmented markets, information costs, imperfect mobility and the 'personal' element of labor markets. In such a case the diagram above would not yield the quantity of labor clearing and the wage rate. This is because while the upward sloping aggregate labor supply would remain unchanged, instead of using the downward labor demand curve shown in the diagram above, monopsonistic employers would use a steeper downward sloping curve corresponding to marginal expenditures to yield the intersection with the supply curve resulting in a wage rate lower than would be the case under competition. Also, the amount of labor sold would also be lower than the competitive optimal allocation.
Such a case is a type of market failure and results in workers being paid less than their marginal value. Under the monopsonistic assumption, an appropriately set minimum wage could increase both wages and employment, with the optimal level being equal to the marginal productivity of labor.[5] This view emphasizes the role of minimum wages as a market regulation policy akin to antitrust policies, as opposed to an illusory "free lunch" for low-wage workers.
you see, the employers can keep the wages of these workers lower than what a normal market would bear, and take advantage of these workers...
also, employment will not diminish with a minimum wage as most econonmists have touted it would on example ON PAPER....they fail to recognize that we have a huge market of workers that are not regulated by the minimum wage, the self employed, service workers, farm workers etc....so those falling from let's say a small business's payroll due to the hike, could find jobs elsewere....
ideally, it would be great not to have to set the equilalent of anti trust laws for the labor market....
with the influx of illegals permitted to come in to our country by our government, it has forced us to protect those making minimum.....
if our immigration laws were FOLLOWED and illegal labor not permitted to enter, then the wages of these minimum wage earners would be naturally higher.... imho.
care