Minimum wage repeal vs. Quality Wage

Discussion in 'Economics' started by jueco2005, Jan 11, 2012.

  1. In favor of repeal

    Those who favor the abolition of the minimum wage argue that this would create full employment as everyone would find a job at whatever wage they are worth. Government creation of a minimum wage only creates unemployment for those worth below the established rate.

    Quality Wage.

    Unemployment as always existed in human history regardless of any time of employment laws. We should be concerned for Quality wage not Quantity. Cuba and most communist countries always managed to have a 0% unemployment rate. And trust me……….you would not want a job over there.

    Jobs is not the key GOOD JOBS ARE and the minimum wage should be raised and adjusted annually for inflation. I have heard that if we adjusted the minimum wage for inflation since 1995 it would be close to 12 hourly. Something to consider before taking a political and economic position.
  2. piezoe


    always enjoy reading your posts. You often have something interesting and worthwhile to say, whether I agree or not.
  3. Something to consider before taking a position? Lets start with the facts. Imposed minimum prices result in a surplus of supply. You are aware of how this applies to a labour situation - you mention that minimum wages increase unemployment.

    Then you conclude that not only should the minimum wage remain, but should be increased. This will result in those who are not worth the new hourly rate going unemployed. The market will only pay you what you are worth. If your labour is not worth a "quality wage" to your employer then you will not be hired on at such rates. Passing minimum wage laws mean that you will then be unable to receive employment at any lower rate.

    You don't define what a "good job" or a "quality wage" is. In the absence of a specific definition we are left to assume that you have no facts or logical argument to support your conclusion, just arbitrary value judgements.
  4. Glad to read that.
  5. Not necessarily. If minimum wage is above market's for that particular profession then yes, if below market rate then it only works to protect the individual and sometimes minimum wage would be irrelevant if below the markets rate.

    I agree but the word worth makes all the difference. The labor market is quite inflexible and takes time for real good negotiations, especially with such weak labor laws.

    Think about the good old days at dawn in the 20th century. People used to work 12 to 14 hours 60 or more weekly instead of 8 and 40 weekly.

    Socialist labor unions and protests all over made possible not only that you get paid the same for less worked hours, but unemployment increased to make up for shortened hours per worker.

    If you find yourself against this then I suggest you start working more for your boss for less.

    I think the same can be true for higher minimum wage rate. Especially if we adjust them to the inflation rate. Did you know that if we adjusted the minimum wage rate to inflation when it was 5.15 it would be around 11 today?? So workers who are paid below 11 are in real terms being paid below 5.15.
    You are right I dont define what a quality or good job rate is. That is very political and subjected to personal appreciation. But I do take the position that numbers dont matter. In Cuba my home country everyone is employed and you rather want to stay home than work.

    As a country we are not generating good jobs. And the ones we create are very low pay.
  6. Lets get real for a moment. So many people think employers are there to serve then. Thats not true. An employee is there to serve the employer. If you want better wages, you go to where there is a demand. You dont sit in an oversaturated market of workers and demand you deserve better just because you are you.

    For instance...Mcdonalds in your town may pay minimum wage, but if you go to Williston, North Dakota (where the oil boom is), Mcdonalds will start you off at $15 per hour. Thats $30k per year to flip burgers and pull french fries out of the fryer.

    If you want a better life, dont expect it to be handed to you. Go out and work for it.
  7. BSAM


    Let's level the playing field from the top down, not from the bottom up.
  8. Spoken like a man at the bottom.

    Dont you think that someone who works hard and uses his brain creatively to make money should get paid better than a guy who doesnt use his brain and just wants someone more creative to pay him more?
  9. BSAM


    I'm thinking about CEOs who get all the dough while the workers do all the real work.
    The playing field in the USA isn't level.
  10. Example: A CEO gets paid 50 million out of 10 billion revenue.
    A 10 billion dollar company probably spends more on office supplies then the pay of a CEO.

    There are about 1000 CEO's who can handle a billion dollar company. A bad choice can kill a company and lose thousands of jobs, not worth the risk just to save a few million dollars.
    #10     Jan 11, 2012