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by _nothing 1934 days ago
Again, honest question: Is $20/hr the minimum living wage in a small rural town?
2 comments

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.