The majority of Americans do not work for minimum wage. There is already competition for skilled jobs, which is good.
Minimum wage laws create an artificial barrier of entry to the workforce that disproportionately affects young people. This is why you see jobs for entry level marketing asking for a masters degree.
People learn valuable skills and either get promoted, or move to a new company. When minimum wage is in place, companies have less entry level positions and new workers never receive the chance to learn and grow. They remain unemployed.
Ironically, many of these entry level jobs still exist—but people pay for the privilege of working there. They are college internships and most students are charged 4-8 credit hours for real world experience. It is promoted as highly valuable, but only when it’s tied to a university.
Money is a resource. If you are forced to spend more, it must come from somewhere. Either by creating a worse product, buying inferior raw materials, or cutting the labor force.
As many companies want to keep their customers happy, they try not to decrease product quality or increase costs.
What would happen if they raised the minimum wage to $2,000 per hour? Companies obviously couldn’t survive, many people would be fired, and prices would skyrocket to keep up.
The same thing happens on a smaller scale with a $2.00 increase.
Well, yes exactly. If they cannot afford to pay employees, they will have to make sacrifices, downsize, etc. That's sort of the push/pull of the free market. The answer isn't to cut paychecks of your workers
I agree that you can't raise the wage to 2,000 per hour. Nobody could afford that. But you can't say that it's the same as a $2 increase.
$2000 and $10 minimum wage create the exact same problems. They just become more noticeable with the higher amount.
If you are truly interested in learning more, I definitely recommend reading Sowell’s Basic Economics. It uses many real data sets and examples that show how harmful minimum wage laws are.
Here a link to some relevant passages:
https://www.creators.com/read/thomas-sowell/09/13/minimum-wage-madness
The majority of Americans do not work for minimum wage. There is already competition for skilled jobs, which is good.
Minimum wage laws create an artificial barrier of entry to the workforce that disproportionately affects young people. This is why you see jobs for entry level marketing asking for a masters degree.
People learn valuable skills and either get promoted, or move to a new company. When minimum wage is in place, companies have less entry level positions and new workers never receive the chance to learn and grow. They remain unemployed.
Ironically, many of these entry level jobs still exist—but people pay for the privilege of working there. They are college internships and most students are charged 4-8 credit hours for real world experience. It is promoted as highly valuable, but only when it’s tied to a university.
Why do they have less entry level positions? Why can't they just pay the entry level positions more?
Is this a serious question?
Money is a resource. If you are forced to spend more, it must come from somewhere. Either by creating a worse product, buying inferior raw materials, or cutting the labor force.
As many companies want to keep their customers happy, they try not to decrease product quality or increase costs.
What would happen if they raised the minimum wage to $2,000 per hour? Companies obviously couldn’t survive, many people would be fired, and prices would skyrocket to keep up.
The same thing happens on a smaller scale with a $2.00 increase.
Well, yes exactly. If they cannot afford to pay employees, they will have to make sacrifices, downsize, etc. That's sort of the push/pull of the free market. The answer isn't to cut paychecks of your workers
I agree that you can't raise the wage to 2,000 per hour. Nobody could afford that. But you can't say that it's the same as a $2 increase.
$2000 and $10 minimum wage create the exact same problems. They just become more noticeable with the higher amount.
If you are truly interested in learning more, I definitely recommend reading Sowell’s Basic Economics. It uses many real data sets and examples that show how harmful minimum wage laws are.