Why the fight for minimum wage?

[Norman]

So basically, businesses are too damn stupid to know when to use automation or when to not to. But somehow with minimum wage their decision will be better. Makes total sense...
... So let's rise it and see... higher the better right?

Norman, basically, businesses make cost/price determinations. There’s little inducement to develop or invest to automate tasks that can be performed at little or no greater per unit cost by less costly labor.

But yet still, if the businesses automate, those low wage earners get to keep their jobs as well? You are trying to have the cake and eat it too.

Min wage hurts the poor, and it helps the richer type who build that said automation.

I’m unaware of a minimum wage rate being detrimental to any nation’s economy but I don’t know precisely how and why but do not doubt that an extraordinary enforceable minimum wage rate would be detrimental to a national economy. I’m unaware of such a national occurrence anywhere at any time.
I ‘m aware that an insufficient minimum wage rate promotes poverty and poverty is detrimental to any nation’s economy.

Of course you are unaware, why would hack look for something that he doesn't want to see? Just by a quick google search I found at least American Samoa...

Swim Expert, the justification of the federal minimum wage is not germane to this discussion?

Respectfully, Supposn

Federal min wage is terrible idea. Because prices vary so much between places. Do you think the policy makers are going to look at each different district in the USA and decide an appropriate wage? NO! There are going to be winners and losers. The richer areas will be the winners.

Besides that in my personal experience min wage is horrible idea. Because you can take a worse job that accumulates your skills and actually has interesting work envioronment rather than mc donalds or something. Kind of like an internship. You are not supposed to earn a lot on these jobs, it's like saying you are supposed to get rich out of being in the university.


I much rather support the benefts you can get as a minmum wage worker - food stamps, tax cuts, supplementary income and etc. At least those actually help the poor that you so much care about. Although these people often do not live at all like the poor, but means testing is also problematic...

 

[SwimExpert]

In what way is pointing out that unequal bargaining power in the labor market, often amounting to monopsony, not a valid reason for using the minimum wage as a counterbalance?

I asked what people expect to accomplish by raising the minimum wage. I did not ask about the merits of having a minimum wage in the first place.

 

[oldfart]

In what way is pointing out that unequal bargaining power in the labor market, often amounting to monopsony, not a valid reason for using the minimum wage as a counterbalance?

I asked what people expect to accomplish by raising the minimum wage. I did not ask about the merits of having a minimum wage in the first place.

If you will re-read the thread you will find that I gave a direct answer to your question. My quote above was in response to another comment you made. Perhaps you should call a foul on yourself for drifting off target.

And while I agree a certain amount of deference should be given to the OP, I point out that the OP owns neither the board nor the thread. If it drifts in a direction the posters find interesting, so be it. You are being childish to expect people to let you dictate the development of a thread.

 

[Supposn]

... The way min. wage laws work is that the law makes it illegal to hire low value employees and still make a profit. Sure, we all know anyone can hire a low value employee at a loss and go out of business if he wants. Once. After that one time there's no more business. OK, so down at the looney-lefty union hall the thugs will say the employers are willing to go out of business by hiring low value employees, but that's just how looney-lefties talk and it's not true.

Expat_Panama, a minimum wage rate has no effect upon labor that’s currently in short supply for any particular task. Where there’s no enforceable explicit legal minimum rate, an indefinite market determined legally unenforceable minimum rate emerges.

A market determined rate in practice will be of extremely less purchasing power than that of a legally mandated rate; market determined minimum rates are “races to the bottom”.
A state’s minimum rate that is not less than a federally enforced minimum rate is bolstered by the federal rate.

Excluding tasks for which labor is currently in short supply, the purchasing powers for ALL other tasks are generally inversely and proportionally related to the differences between theirs and the minimum rate’s purchasing powers. It’s proportionally greatest effect is upon the wages of the working poor.

The increased numbers of jobs induced by labor markets’ extremely lesser wages’ purchasing powers would be met and probably be exceeded by the increased numbers of potential employees that can accept those lesser wages. The working poor proportion of our population would greatly increase and a greater proportion of our working poor will require public assistance to augment their wages.

Respectfully, Supposn