ChoiceStorm

Are Minimum Wages good for Economies?

This will be a generic question about the nature of minimum wages.  This question can be expanded into new regional specific questions relating to whether minimum wages should be increased or decreased.

 

Are Minimum Wages Good For Economies?

Are Minimum Wages Good For Economies?

5

Votes

Minimum wages are good for economies.
3

Votes

Undecided.
1

Vote

Minimum wages are bad for economies.
New:
1 Votes left

jVoteSystem developed and designed by www.joomess.de.

  

Minimum Wages are Good For Economies

Minimum Wages are Bad For Economies

Free Market Theory

Markets are complicated spaces that don't always operate according to the theory that invisible hand of free market produces the best results.

Free Market Theory

Markets should decide how much people are paid rather than governments.  Allowing workers to be employed for the competitive market value of their work allows the growth of industry.

Unemployment & Poverty

The lowest paid group of society are also the most likely to spend their money locally.  As minimum wage goes up, so does local spending which has a positive effect across the community, increasing employment and decreasing poverty.

Unemployment & Poverty

Unemployment goes up when minimum wages are introduced or increased because employers cannot hire as many people when they have to pay them more.

Minimum wages eliminate jobs on the lower end of the market.  Some jobs are not worth doing at the minimum wage, and therefore are not done.  Robots and other automated efficiencies are used to replace workers who are too expensive.

Employer Benefits

Employees who are better paid are happier and therefore work harder.  Higher paid employees stay at the workplace longer and therefore company training fees go down.

Employer Benefits

If any of the benefits of higher paid employees outweighed the cost of paying them the higher fee, companies would do that according to market ability.  It doesn't make sense to mandate that someone do something that is in their benefit.  If it is in their benefit, they will do it anyways.

Employee Treatment

People who are working full time have the right to have a certain standard of life.  As a society, we have an obligation to monitor the balance of power and discuss the effects that the systems that are in place have on the marginalized.

In the United States, miniumum wage has lost more than 30% of its value since 1986 due to a failure to keep up with inflation.

Employee Treatment

The best way to employ the most people is to keep the minimum wage low or eliminate it all together.  Ensuring that employees are well treated does not take into account the affect that minimum wage has on unemployment.  Most minimum wage earners are young and not supporting families.  We need to ensure that young people still have the opportuntity to get work experience early.

Studies

Studies such as the well-known Card and Krueger study show that the introduction or increase of a minimum wage has positive effects for the local economy.

Studies

The studies noted only follow short term trends, rather than reviewing the long term consequences of minimum wage.

Other Factors for Discussion

Even if minimum wages are good, there will be a point at which they are no longer helpful. 

 

References

1.     https://helda.helsinki.fi/bitstream/handle/10138/26140/reconcil.pdf?sequence=1

2.     Vlogbrothers: Should We Raise the Minimum Wage? http://www.youtube.com/watch?v=ZI9aDHLptMk

3.     Feestructure: The Truth about the Minumum Wage: http://www.youtube.com/watch?v=siW0YAAfX6I

4.     Raise the Minimum Wage http://www.raisetheminimumwage.com/

5.     minimumwage.com http://www.minimumwage.com/

  • No comments found
Add comment

This page is compiled and maintained by the ChoiceStorm community.  

Login or create an account to edit this page or make corrections.

See How you can help to learn more

© Copyright 2013 ChoiceStorm