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Does a minimum wage law achieve an opposite effect as it was intended to achieve?
We supposedly want to improve the lives of low skilled individuals. Therefore, we make a law requiring employers to pay at least X amount of money to these people. However, there is no law against not hiring these people. Instead, companies are left without a choice but to hire illegal workers where they can pay them below X. Therefore all the law does is to discriminate against low skilled individuals by ensuring they do not get employed.
"Would you rather pay more in taxes so they could get welfare?"
I don't. I rather leave that role to private charities than to the government, but that's not my question.
"The purpose of minimum wage is to ensure people are earning a "living wage", enough money to support themselves at a minimum level."
But how does the minimum wage law achieve that, my point is that is achieves the opposite of that, doesn't it?
"The law says nothing about "low skilled individuals"."
Name me 1 high skilled job that requires the minimum wage law of which without it, these jobs will be paid a level below the minimum wage. Of course, the law is meant for low skilled individuals, unless you mean that doctors and lawyers need the minimum wage law too.
8 Answers
- 1 decade agoFavorite Answer
The minimum wage laws came in to effect after the great depression as one of Franklin Roosevelt's socialist ideas for America. At the time no one had any money and that being the case no one could spend it and that being the case business was at a stand still. The minimum wage law was just one of his ideas to get money flowing and it worked ( a long with a war that destroyed the industrial bases of other nations). It has held on since. The immigration thing is a different horse altogether. The thing is the people who have the money are very good at making it and keeping it. Unfortunately there is no silver bullet for poverty. It doesn't make much difference either where you go because greed is every where. You can point the finger at poor people and say they are poor because of life style choices, culture, education, etc and you can point the finger at the rich and say that they are keeping the poor, poor. Both are right.
- ?Lv 71 decade ago
The law says nothing about "low skilled individuals".
Employers have whined about the minimum wage since it was introduced, and every time it has ever been raised. All the claims of doom and gloom have been just that, nothing has changed but prices. Yes, you may be able to find a few jobs lost in a very small business, but not the massive loss predicted every time the minimum wage has changed.
The purpose of minimum wage is to ensure people are earning a "living wage", enough money to support themselves at a minimum level. The Federal minimum wage does not provide that in most areas of the country. In California, minimum wage won't get you a bedroom in a flop house, let alone an apartment. In New England, it won't pay for enough fuel oil to keep you from freezing to death.
Your ASSumptions on the purpose of the minimum wage law make the rest of your question pointless.
- theREALtruth.comLv 61 decade ago
Actually, the minimum wage laws do have the opposite effect of what they were intended to do, but for other reasons.
The problem with a minimum wage is that the company paying the wage is a business, and businesses like to make money. So when they have to jack up the minimum wage, they do one of two things. Most commonly, they just jack up their prices to compensate and pass the increase in the workers' wages on to the consumer. But sometimes, they actually lay out workers to make room in the budget to pay the increased wages without jacking up prices for the consumer.
- Anonymous1 decade ago
There are others better suit to answer this, such as "Obama Lied, Grandma Died"... but I have one point I wish to offer.
The number of illegal immigrants in this country is greatly overblown, as is the number of illegal workers.
I do believe it is nearly impossible to find jobs that ignore the fact that you don't have an SSN. And I do believe there is consequence for hiring employees without an SSN. Just imagine what would happen if their entire staff was filled with such workers.
And they got caught.
Simply because someone can't speak english and works in america doesn't mean they're an Illegal worker.
- Anonymous1 decade ago
"Capital shall control labour by controlling wages"
"There are two ways to enslave a nation. One is by the sword. The other is by debt"
Source(s): http://video.google.com/videoplay?docid=-594683847... http://video.google.com/videoplay?docid=7065205277... - 1 decade ago
No, that's just a myth encouraged by business people who want to own slaves.
- Anonymous1 decade ago
Would you rather pay more in taxes so they could get welfare?