well i think i can disprove your post quite easily at least in one scenario buisness is making $500 an hour with 5 employees making $7 an hour, increase minimum wage to $11 and now you are just taking more from the rich and have the same number of employees im not saying that minimum wage laws are effective just that your proof isnt 100% right?
Want to easily kick some progressive ass, in a debate? Debate them on the minimum wage!
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low preference guy
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can you disprove that a worker whose productivity is less than the minimum wage won't get a job unless the employer wants to lose money?
I Don't Vote
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If a person wants to start a business with the condition that he wants to profit at $100/hr from each employee, then raising the minimum wage may still affect his decision.
I think this is really the issue here.
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That's a pretty big jump.. a 57% increase.
Taking a 5% inflation into account.. after 10 years, $7 becomes $11.30. Assuming no lag to trickle into wages, the dollar value would support this after 10 years.
Assuming the company is profitable to the same level, they should be making $814.45/hour after 10 years
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erowe1
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If there's a business like you described, then in a free market it would provide an opportunity for a competitor to come in, sell the same product at the same quality at lower prices, hire away the same employees by offering them $8/hr., and still turn a profit.
Because of this process, profits of all businesses in a free market tend toward zero, and the going rate of employees' wages tends toward the value of their marginal productivity. Setting a minimum wage higher than that marginal productivity of some employee would price that employee out of a job. Setting it lower would have no effect on that employee, since they'd make more than that minimum wage anyway, but it would still price some other less productive employee elsewhere in the economy out of their job.
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loveshiscountry
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In the free market a business making 500 an hour paying five employees between 7 an hour would get competition and drive that wage upwards. That's what I love about the Free Market. It determines the value not some biased, paid off politician. You make 100k a year paying your employees X an hour someone will be satisfied to make 80k a year paying X plus 1 an hour.
Yes but his proof is not 100% as he suggests, my scenario is a realistic one that he did not account for.
This.
TheBlackPeterSchiff
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Also, how can you be for a minimum wage AND for inflation at the same time?
Wolverine302
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And the federal government derives its power for implementing a minimum wage standard on private businesses from the...??
??
??
VBRonPaulFan
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the emotional amendment that democrats added
I don't think anyone is for inflation.. that's the policy the Fed has chosen for us.
Get rid of the Fed.. get onto a gold standard.. then watch the debate turn interesting:
Minimum wage is $10 but due to deflation, instead of businesses earning $50, they're now earning $40..
would there be political will to decrease minimum wage? ^_~
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