HappySqurriel on 10 September 2008
| MontanaHatchet said: Removing minimum wage is going to improve the economy? How so? Employers will make the wages whatever they want and lower class workers and families will suffer because of it. Should the citizens suffer because the government has made bad decisions about its country's money? |
The wages you earn in an ecconomy are (essentially) a reflection of supply and demand of the skills you have as an employee. Now, a minimum wage acts like a minimum price of any type of good which has massive variation in quality; if it is low enough it prevents explotation, but if it is high enough it reduces employment for lower "quality" employees. To illustrate this, consider what would happen if someone instituted a minimum price on a meal at a restaurant ... if it was low (like $5 or $6) it wouldn't really impact how many restaurants survived, but if it is too high (like $50) eating at a restaurant would become a luxury and some restaurants would thrive from the additional income while most would not be able to find customers.
