
07-06-2006, 06:42 PM
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Guru
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Join Date: Oct 2005
Location: Ottawa County, Ohio
Age: 46
Posts: 4,935
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Originally Posted by Mack";p="
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Originally Posted by heikstheo";p="
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Originally Posted by Mack";p="
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Originally Posted by bktx1";p="
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Originally Posted by Mack";p="
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Originally Posted by bktx1";p="
On the surface, it sounds like a good way to promote a living wage.
But in fact, it is often disfunctional and hurts those who need work:
- I don't see a single min. wage which could even come close to being a living wage
- by creating an artificial minimum, many employers will choose not to hire many marginal workers, including many part time student workers.
The fact is that employees are paid for their productivity and against the laws of supply and demand. There are forces out there and competition for jobs worldwide which affect workers. It is often painful and discouraging. You have to bring something to the table, and find something which you love and which has long term potential. If you find something that you love, then do that, but if you love what you do, you will find success. Sometimes it takes awhile to figure out what that is. It took me 18 years of work to figure out what I really loved. (When I say do something you love, I mean find an occupation that you love with a realistic chance of success.)
There are lots and lots of unhappy lawyers and dentists out there.
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The problem with the supply and demand argument is that the employee is making their decisions on the fact that they will be receiving some serious supplemental income from the US government in the form of welfare, food stamps, medicaid, and earned income tax credits. This messes up the supply curve and makes many workers take jobs they ordinarily wouldn't.
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Isn't what you are saying an argument against a minimum wage?
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No. The point is that people will work at an artificially low wage because they will receive other social benefits like the ones listed above. With a high enough minimum wage, the company is forced to pay the minimum amount at which someone would choose to work instead of being unemployed. Without minimum wages, the burden of paying living wages is forced onto tax payers.
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On the other hand, without these subsidies in the form of social welfare programs, the burden of actually paying a living wage falls on the employer.
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True. However, the fact of the matter is that these programs do exist, and it is very unlikely that they are going away any time soon. The merit of these programs is an entirely different and complicated debate so I chose to just acknowledge that they do exist and go from there.
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I never said that government benefits would be abolished anytime soon, nor did I say that they should be, merely that their existence allows employers to get away with paying wages that are lower than might otherwise be the case. Please do not misconstrue what I said.
__________________
Theodore Lamar Heiks
BA, History/Political Science, Western State College of Colorado, 1984
MBA, Entrepreneurship/Marketing, City University of Seattle, 1993
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