Minimum wage

[PJShah <pjshah@del2.vsnl.net.in>]

The arguments against the minimum wage are quite well known.  They boil
down to the law of unintended consequences: Low-skilled people who are
the supposed beneficiaries are hurt the most.  Even the so-called "new
thinking on the min wage" doesn't deny this; it makes the judgement that
the harm to some low-skilled people is more than compensated by the
benefits to some others.  Those who advocate min wage should recongize
that its alleged benefits flow not at the cost of "exploiters" but at
the cost of some other poor folks.  If you are  willing to harm some
poor to benefit some other poor, go ahead, but be fully aware of what
you're doing.
parth-

Arvind Kumar wrote:

> ---Charu datt <charu@ix.netcom.com> wrote:
> >
> > To reiterate, my response was: set a minimum wage at
> > a level that makes it possible for someone working 8
> > to 10 hours a day to be able to buy the minimum of
> > food and clothing and shelter needed for survival
> > and to continue working. Anything less, IMO,
> > is exploitation and sends the working poor down the
> > "road to serfdom".
>
> You've hit the nail right on the head! What reasons
> could one have for paying less than what one needs
> for the basic needs? If the employer makes enough
> money to be able to afford paying for the basic needs
> but still does not, it is clearly exploitation.
> If the employer himself cannot afford paying such sums,
> it means that the output of his activity is less than
> the input. We would all be better off without such
> activities with negative benefits. Such people would
> do better to shut down their businesses and plough the
> fields. We would all benefit.
>
> -Arvind
>
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