Quote:
Originally Posted by woj
How about explaining what's wrong with my logic instead of posting some lame pic? Someone's skills are for example worth $5/hr, can you explain why the employer should be forced to pay $9.50/hr for work that is worth $5/hr?
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You can't allow the minimum wage to be dictated by market forces when the government interferes with the labor market to guarantee that there is always a surplus of workers.
When unemployment rates get too low, that has an inflationary impact on the economy. Then the fed steps in, and raises rates and lowers the money supply to slow the economy down and drive unemployment back up.
Hence, the laws of supply and demand don't really apply because the government always ensures that there is a surplus supply in the labor market. Because of this a minimum wage is necessary.
IMO, if you're going to have a minimum wage, it should at least be at or slightly above the poverty level.
