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by _nothing 1946 days ago
This is an honest question - Can small businesses in rural areas afford a $20/hour minimum wage? I can't imagine a grocery store in a small town being able to maintain much of a staff (or any) at that rate, for example.
2 comments

Counterpoint: your business not being profitable enough isn't a reason not to pay a living wage.
Again, honest question: Is $20/hr the minimum living wage in a small rural town?
In the US, the minimum age to purchase alcohol is 21. It used to be 18. In other places it's younger, and/or it depends on the alcoholic content of the drink.

So, is 21 the right age? Is 18? Is 16?

Honest question: how would you go about answering your question?

Economists disagree with each other, so it's not something that an HN comment is going to resolve.

Me, I based it on how the minimum wage from the 1950s, adjusted for productivity, would be about $25/hour - https://edition.cnn.com/2021/02/21/politics/minimum-wage-inf... .

This means the productivity benefits are going somewhere, but not to the poorest people who are working the most.

Raise minimum wage to $20/hour (and/or increase collective barganining power), and raise taxes on the wealthiest, and increase the social safety net - pretty bog-standard social democratic viewpoints.

The real answer is that you should pay what the labor is worth. $20/hr may or may not be the right amount.
It's a complicated answer because of laws nerfing collective labor power in the US, like Taft-Hartley.

That is, I believe there's a big thumb already lowering wages to below its worth. So the real question is, how do we determine "worth"?

Some countries with strong unions, like Denmark, have an equivalent of $20/hour minimum wage for McDonald's employees, even though Denmark has no minimum wage.

It depends. Some can. There would be some that cannot. Rural grocery stores are already more expensive so we would have to determine where this extra money is going.