Mr Khan said:
Does that "average" earning take into account the people who make $1000 in the time it takes to sneeze? As far as we can tell in the meanwhile, most people on the minimum wage are NOT teenagers, but are "full" adults, and 40% of them are classed as breadwinners (pulled from... somewhere in the Department of Labor). As for the questions of why companies would try to push down? Even for professional positions, companies are trying to find ways to get away with paying people little to nothing, but they call them internships. Fortunately unpaid, work-producing internships for for-profit companies are in the process of being outlawed. Next they just need to crack the non-profit sector. You do make a valid point that a company's desire for long-term worker retention usually leads to seniority-based pay raises even for low-end positions, but the entry level wage would certainly sink across the board (until it hits that dirt-poverty threshold. But then again, internships dodge the dirt-poverty threshold and still people compete for them) if the laws mandating it vanished. |
This takes into account those who make an hourly wage, the 'rich' are generally salaried.
You miss the point that only 6% of all workers make minimum wage (about 4% if you factor out tip-based positions, which you should) or lower at a given time, 50% of those are young people, 30(ish)% in the service industry (so most likely make more), that leaves the rest who are generally TEMPORARILY at that low a wage, are part time (not the breadwinner), are just starting in a position, and/or are extremely low skilled. Even so, the extremely low skilled worker will generally not be at minimum wage permanently. Again, if your hypothesis were true, there should be a far larger, and more statistically significant portion of the population making the minimum.
It is a near statistical impossibility for anybody with half a bran, a high school diploma, and a decent work ethic to be in a minimum wage position long-term. This is undeniable.
Even though most of the poplulation will literally NEVER make minimum wage, those that do DO NOT stay there, period. Your hypothesis just doesn't match up with the reality of how the market works.
Hell, even the average cashier at WalMart makes about $10/hr!
EDIT: In a good economy (more robust job market), the percentage at minimum wage is about half, so again, market sets wages...