Minimum Wage

[Travlyr]

Question: Since 'the powers that be' can print unlimited amounts of money, then doesn't that negate the Austrian argument about minimum wage?

It seems to me that in a world of 100% redeemable currency, the money supply is fairly static and restricted by natural occurrences. For example, when miners mine gold then the money supply increases. If a gold shipment sinks in the ocean, then the money supply is decreased. Minimum wage laws would be nonsensical using honestly earned money. The Austrian argument is valid.

However, in a dishonest system of fiat currency where the privileged few get to print however much currency they want, then it seems to me that they should be forced to pay higher wages.

Also, the Austrians always lose the emotional argument by opposing the minimum wage laws anyway. Wouldn't the fiat system come crashing down faster if minimum wages were raised? I say raise them to $25.00/hr and let's get this nonsense over with.

 

[erowe1]

I don't know what the Austrian argument against minimum wage is. But there is no valid argument for it. It is so clearly wrong under all circumstances, whether there's a fiat currency or not, that I don't even see a debate.

It boils down to a simple ethical imperative:
Some people would like to be able to offer their labor at prices below whatever the minimum wage is, and none of us have any right to tell them they can't.

 

[Travlyr]

I don't know what the Austrian argument against minimum wage is. But there is no valid argument for it. It is so clearly wrong under all circumstances, whether there's a fiat currency or not, that I don't even see a debate.

It boils down to a simple ethical imperative:
Some people would like to be able to offer their labor at prices below whatever the minimum wage is, and none of us have any right to tell them they can't.

On moral grounds, yes. However, it is already established so I say raise it to $25/hr and let everyone see just how destructive market manipulation can be to the economy. Plus, the Austrians would start sounding compassionate. Win/Win.

 

[Madison320]

Question: Since 'the powers that be' can print unlimited amounts of money, then doesn't that negate the Austrian argument about minimum wage?

It seems to me that in a world of 100% redeemable currency, the money supply is fairly static and restricted by natural occurrences. For example, when miners mine gold then the money supply increases. If a gold shipment sinks in the ocean, then the money supply is decreased. Minimum wage laws would be nonsensical using honestly earned money. The Austrian argument is valid.

However, in a dishonest system of fiat currency where the privileged few get to print however much currency they want, then it seems to me that they should be forced to pay higher wages.

Also, the Austrians always lose the emotional argument by opposing the minimum wage laws anyway. Wouldn't the fiat system come crashing down faster if minimum wages were raised? I say raise them to $25.00/hr and let's get this nonsense over with.

I think you're way overcomplicating a simple concept. 2 wrongs don't make a right. It should be up to the employer and employee to come to any voluntary agreement they want.

 

[tod evans]

For several decades the "Big-Mac" index has been a logical way to price labor in the trades...

A skilled journeyman demands 10X the price of a Big Mac for labor in a given area.

So increase the minimum wage and up goes the cost of a burger and all the labor that ties to it....

 

[Seraphim]

Our DUMMY of a Premier raised the minimum wage here in Ontario today;

http://www.bnn.ca/News/2014/1/30/Ontario-hikes-minimum-wage-to-11-an-hour.aspx

 

[Travlyr]

I think you're way overcomplicating a simple concept. 2 wrongs don't make a right. It should be up to the employer and employee to come to any voluntary agreement they want.

True enough. Yet, if you start arguing for no minimum wage at all, you are sure to lose. "Have you no compassion at all?" Just kidding. I know your position is more compassionate. That is from logic not emotion. Yet, the emotional argument almost always wins today.

 

[oyarde]

Our DUMMY of a Premier raised the minimum wage here in Ontario today;

http://www.bnn.ca/News/2014/1/30/Ontario-hikes-minimum-wage-to-11-an-hour.aspx

You have not caught Australia yet

 

[Seraphim]

Oh I'm aware that their min. wage. is retarded.

And they wonder why a meal that would cost 12$ in most of the Western world costs them 21$.

My dad did A LOT of business in Australia last year. It was ridiculous.

You have not caught Australia yet

 

[nbruno322]

Oh I'm aware that their min. wage. is retarded.

And they wonder why a meal that would cost 12$ in most of the Western world costs them 21$.

My dad did A LOT of business in Australia last year. It was ridiculous.

Here is an Austrian economist debunking the Australia minimum wage myth.

http://www.internationalman.com/78-...he-minimum-wage-and-unemployment-in-australia

 

[oyarde]

Oh I'm aware that their min. wage. is retarded.

And they wonder why a meal that would cost 12$ in most of the Western world costs them 21$.

My dad did A LOT of business in Australia last year. It was ridiculous.

Yeah , no dollar menu , LOL , you need a $10.

 

[heavenlyboy34]

Here is an Austrian economist debunking the Australia minimum wage myth.

http://www.internationalman.com/78-...he-minimum-wage-and-unemployment-in-australia

That article supports this "myth" (which isn't mythical). You ought to have actually read it first. (unless you're the type who likes to destroy his own arguments, of course)

 

[Travlyr]

What I was trying to get at was if minimum wages are to be mandated, then shouldn't it be directly tied to the amount of new money being created? And to add to that ... shouldn't Congress members pay be tied to the mean wage of America?

 

[nbruno322]

That article supports this "myth" (which isn't mythical). You ought to have actually read it first. (unless you're the type who likes to destroy his own arguments, of course)

How exactly does it support the myth that Australia's higher minimum wage causes lower unemployment? I don't see that anywhere. Can you point out where it actually supports the "myth" cause I don't see it.

 

[ClydeCoulter]

That article supports this "myth" (which isn't mythical). You ought to have actually read it first. (unless you're the type who likes to destroy his own arguments, of course)

What? The article shows that minimum wages do increase unemployment in Australia as predicted and that it is lessened because of the sliding minimum wage scale according to age.

 

[oyarde]

What I was trying to get at was if minimum wages are to be mandated, then shouldn't it be directly tied to the amount of new money being created? And to add to that ... shouldn't Congress members pay be tied to the mean wage of America?

I support Congress , Senate , Pres being pd median income as salary. It is supposed to be public servant work .

 

[tod evans]

I support Congress , Senate , Pres being pd median income as salary. It is supposed to be public servant work .

No shit!

 

[mczerone]

Question: Since 'the powers that be' can print unlimited amounts of money, then doesn't that negate the Austrian argument about minimum wage?

It seems to me that in a world of 100% redeemable currency, the money supply is fairly static and restricted by natural occurrences. For example, when miners mine gold then the money supply increases. If a gold shipment sinks in the ocean, then the money supply is decreased. Minimum wage laws would be nonsensical using honestly earned money. The Austrian argument is valid.

However, in a dishonest system of fiat currency where the privileged few get to print however much currency they want, then it seems to me that they should be forced to pay higher wages.

Also, the Austrians always lose the emotional argument by opposing the minimum wage laws anyway. Wouldn't the fiat system come crashing down faster if minimum wages were raised? I say raise them to $25.00/hr and let's get this nonsense over with.

I kinda agree.

While employers are not a homogeneous group uniformly benefiting from FED policy, it is the top of the economic ladder that gets the highest benefit from monetary/fiscal policy.

Though forcing employers to pay more for labor hardly seems like a good fix to the problem of the poor getting poorer.

I'd like to see more of a push for direct govt payments to people instead paying for subsidies, bailouts, and FED banking policy and forgoing further interventions to fix previous interventions.

Imagine the FED saying "We need to lower interest rates, so we're going to order the Treasury to send every U.S. citizen $6000 per month for the next 8 months."

That sounds better than giving banks a whole bunch of free cash that they sit on to increase their reserve ratios, or interfering with private contracts.

 

[oyarde]

I do not even now of anyone who makes minimum wage, probably even a lower percentage than those without health ins before the evil Dems got involved with the health care bill ......

 

[nbruno322]

What? The article shows that minimum wages do increase unemployment in Australia as predicted and that it is lessened because of the sliding minimum wage scale according to age.

Exactly

Having a minimum wage of $10/hour for a doctor wont make any difference because it is nowhere near the market level of wages. So minimum wage wont make a difference here.

Where it does make a difference is when it is above the market level of wages, that's when it causes more unemployment.

One such job that doesn't exist in America anymore are gas station attendants, priced out of the market thanks to minimum wage.