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by bawolff
309 days ago
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> Real question: If government-mandated wages are good policy, why not set the minimum wage to $100/hr? Because min wage policies have a cost and a benefit. The benefit only happens at relatively low numbers (enough for basic necessities). After that point you dont get more benefits but the costs still increase. |
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Is a three-bedroom house in [pick nicest neighborhood in any metro area] a necessity?
How about a one-bedroom apartment in the same neighborhood?
An in-law unit (e.g., "granny flat") on a farm just outside town?
A room in a six-bedroom co-op house where meals are collectively prepared and shared?
Same could be asked about food, clothes, etc. I can buy used clothes for $5 or new ones for $100.
"Basic necessities" is woolly term that in practice is full of paternalistic value judgements. Every individual has a variety of resources to draw upon that would make them willing/unwilling to work a job at a given wage.
A government-mandated minimum wage means some people who could find employment will not because their output do not exceed the wages the government has declared must be paid. In practice, it also means many people starting out in life or who are less skilled never get the chance to be hired and learn new skills that increase their pay.
Minimum wages remove the lowest rungs on the job ladder that often teach skills required to be successful higher up.