I keep hearing "end minimum wage!" Like it would be the ultimate solution for America. I think it's far more complicated than that. even more than I can understand.


To some of the brighter minds on here, I have a question. If minimum wage were to end tomorrow, what would happen? With no changes to any other gov. Programs, subsidies, laws etc.

Our currency being manipulated by the gov, the Chinese weakening their currency so the jobs are exported, corporations benefitting from gov. Subsidies, welfare, wic, ebt, etc., what if anything would ending minimum wage do to these problems?

You say they aren't worth the $7.25hr they currently make. Some aren't, but That's a different subject. What would a pay cut from $7.25 do to America? You can't raise a family on 7.25hr. I know that's not the way it's supposed to work, but when the gov. Increases your welfare money each time you have a child, it's going to cause a spike in the lower IQ population. What are all these people going to do? Starve, steal, set up shanty towns made out of pallets like in third world countries?

I can't even remember how many times I've seen someone post "I studied economics in school!" Id like to hear a how ending minimum wage would equate to a real world solution to the money problem in America.

I just want to hear something other than "why not make it $100hr then!"

In for honest answers

Illegal immigration would fucking end.

Why don't you give us some of yours?

I don't know the answer. Probably a number of often conflicting things.
It would depend on the values of the owners and managers running the businesses.
In theory I don't like the minimum wage.
The Socialists try to address this stuff by taking over the ownership of production or maybe just regulating it severely.
But I also know there are some who would treat employees badly, almost like when there were no limits.
Child labor, no limit to the hours demanded, no safety etc.
We have laws that eliminated or reduced those abuses.
Libertarians would say, just don't work for such people. And that too is valid.
I don't know.

I don't honestly think much would happen at all.

Most jobs, even shitty entry level jobs pay more than minimum wage because the market demands it.

That is why you see Burger King clerks, and gas station attendants making $ 8 or $ 9 when the minimum wage is $7.25

A few people would be cut, but not many.

If someone is truly only worth $5, he/she probably doesn't even have a job now as its unlikely someone is going to pay him $7.25

Shit would get wicked cheap. Bread, etc.





People with good negotiation skills would thrive. Those that don't have them would starve.





Most citiots (city-idiots) on the EBT and the Welfare would starve.





Crime would increase.










 

I would bet that most jobs would be unaffected (seriously, if you can breathe and show up on time it's not hard to hold a half decent job making over minimum wage), but places that pay minimum wage or up to 10% over would install a revolving door for new employees in a hurry.

You gotta pay to play

As a business owner myself my opinion would be that wages would float like they do in every profession above minimum wage.

The same job in two different cities can have two drastically different wages, based on various factors like cost of living, applicant pool and job saturation... none of which are mandated by the government. A widget designer can make thirty grand a year to start in Pigsknuckle Arkansas and an almost identical position in Techvalley California can start at eighty. Tons of factors push that gulf in wages.

Sure without minimums places can offer peanuts, but no one will take the jobs and they will be forced to raise their offering wages to a point where people DO take the jobs or they have to find alternatives. To some degree a mandated minimum wage more or less keeps the bottom rung of society stationary... not in any sort of class warfare sense, but it keeps them from migrating to a completely different city out of the promise of higher wages. I think without a minimum wage the first few years would be interesting... then after the labor markets corrected themselves things would settle back down into more or less the same situation we have now with the minimum wage in effect. Lots of folks like to scream "race to the bottom", and in some sectors that could very well happen... but the same lament holds true: if you don't want to make scratch then learn a trade, get an education or a skill set and move to a position that pays. Hunger used to motivate people, now it just motivates them to bitch more.

mine's up (it needed editing)if that's what you mean.

Go to Mexico and look around.....that.

I would still pay my employees more than what the current minimum wage is because I need quality people to make my business work.

The market dictates wages. When central economic planners try to manipulate the market by pumping up minimum wages the market responds with inflation.

So if we give the burger flippers and such $15 an hour sooner rather than later inflation will cause that $15 to have about the same buying power as the $7.25 minimum wage.

Manipulating minimum wages just causes instability in the labor market. This is bad for people at a levels of the icome scale as the market seeks equilibrium.

Overall in the long run, minimum wage hikes are pointless.

To answer your question, eliminating the minimum wage would bring stability to the wage market and in the long term not have much impact on the bottom tier earners. The main benefit is reducing inflationary forces. Overall it would be a good thing.

Fast food would drop to their former reasonable prices.

Well said.

As far as the race to the bottom, people aren't going to work for two or three dollars an hour. They aren't going too. There is going to be someone willing to pay more to get that labor for those willing to work.

I think Canoeguy nailed it, at least for most employers. Do you really want an employee who can't find anyone who'll pay him more than $5.00/hour?

These would both need to change hand in hand.  Ending the former, would increase participation in the latter.  Seriously tweaking both and allow an amount of time.  There would be some very poor communities, but manufacturing would come back to America, but all in all, people would learn to eke out and existence.  I envision it kinda like China is but better.  Yes there are very poor but there are also very rich.  People understand you got to do what you got to do to get food in their gullet.

Just my guess.

I've seen this first hand, I have a family member that worked at a waffle place. They had people that would call out at least once a week. But what are you gonna do when no one else will do it. Who's going to work 3rd shift for $7.25hr. Not too many.

Right now the way our system is set up, you can have a kid or two and qualify for enough assistance that equals far more than $7.25hr. Especially if you count in the cost of free medical ins.

Low to no cost housing project
Subsidized power and water
Free cell phone
Free health ins
$600-800 per month ebt, more for wic if the kids under 2
Free taxi to take you to the doc. And grocery store.

All That or $7.25 an hour to work the night shift, serving rude, no tipping drunks. And unless you have 3 or more kids, 40hrs a week at $7.25 disqualifies you from that assistance. All the more reason to not work. A drug dealing boyfriend can buy the other necessities, like cigarettes and beer.

That goes against GD Management 101. You ALWAYS pay your people least you can, that's how you make the most money. Who cares if they fuck up shit and you lose customers, you just treat them even shittier.

I have no idea, but most entry level work in the trades already pays higher.

I start guys at $12/hr as long as they are good workers.

No one would do that work for $8/hour, at least not for too long.

Really? Fuck, I think it would go up. Lots of shitty jobs Americans wouldn't want to do. Lots of illegals will still do it, even for less money.

Businesses would lower their wages.

Employees would leave because it wouldn't be worth their time anymore to work.

Businesses would respond by raising their wages to acceptable levels.

Employees would return.

Capitalism would win.

That's my biggest bitch... Your NOT suppose to raise a family on min wage!!!!  



Min wage job's are "stepping stone" jobs for kids in high school. After school, they need to move on up. When everyone else did it, they would try and do it to.



When I was in high school, there was few people at burger joints that were over 19. Today I stopped at lunch to get a chicken sandwich and everyone behind the counter was over 40!! Fuck!!!







 

That's because you don't see the jobs worth $5 hour.

There would be more very low wage stuff. Maybe a grocery store pays high school kids $4/hr to help carry groceries to the car and to pick up the parking lot. Construction guys pay a few bucks for a helper to shag equipment and materials.

Employers would lower wages.

Employees would leave, and find better paying jobs.

Employer would be too stupid to realize why employees left.

Employer goes out of business.

Capitalism wins.