A question concerning economics & minimum wage

[mjk45]

SvennoJ said:

Blob said:
Yep your probably right. I saw a lot of people state that Australia has a higher minimum wage when compared to America. Guess what, everything we buy here is far more expensive too, largely cancelling out the differences.
Cant say I'm an expert on economics though.

But is this the case in Australia as well?

A majority of food-stamp families with an able-bodied adult do work, and more than 60% of such families work when they have children. They just don’t get paid enough to feed their families. SNAP is therefore principally a program to subsidize cheapskate employers like Walmart that don’t give employees enough salary to live on.
http://www.msnbc.com/msnbc/whos-dependent-food-stamps

Sure, expenses for employer's increase. Yet it's money that gets spend again. Isn't that better for the economy than high bonusses for the people at the top. I'm no expert either though. Nowadays it seems debt rather than money makes the world go round.

The minimum wage in Australia for a adult is 17.29 per hour ,like most countries certain things are more expensive and some are cheaper ,

a lot of the expense has nothing to do with the minimum wage , take Sydney it is one of the worlds most expensive cities to live  most of that is the high real estate costs with the house medium  being $1,000,000 also the price of the Australian dollar and companies like apple who see Australia as a captive market and set their pricing to maximise profits , what people forget is the economic benifit that comes from the  earnings that return to the economy in the form of spending from people on the minimum wage this is close to 100% a lot more than those on higher wages and it also takes some pressure of the welfare system,

another benifit it it increases the difference between the dole and working  , plus your maccas wont cost more because it's an adult wage