I once worked for minimum wage. It wasnt a living wage then either. That job was a stepping stone to a better education and a better job. If the minimum wage is doubled, two things will happen. Where employers can demand more from their more skilled workers; i.e. greater productivity, they will do so, and simply not hire the less skilled. Where they require the extra workers, in fast food for example, they will have no choice but to raise prices. That price inflation will wipe out any gains for the minimum wage workers and reduce the overall demand for the good or service. Less demand - less need for workers to produce and employees get laid off. The first to go are the less skilled whose wages go from minimum to none at all. No job is the real minimum wage. Supply and demand is a rigid taskmaster, but it isnt fooled by artificially increasing the price of labor beyond what it is worth. If you want to increase wages for the less skilled, send the illegals home. That reduces the supply of labor and forces wages up. The so-called jobs that Americans wont do are really jobs that Americans wont do for the wages that illegals will accept off the books.
Posted on: Sat, 13 Sep 2014 16:11:49 +0000
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