Minimum Wage? (1 Viewer)
- Thread starter loquasagacious
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Right, you're basing your entire argument on HSC economics, explains your short sightedness and your arrogance. " it is economically impossible for unemployment to rise if the minimum wage was abolished " statements such as this clearly show your inability to move from basic concepts and consider 2nd or 3rd order effects, if you weren’t so arrogant and read my first few posts you would see I actually considered these. Oh and calling me an idiot, making blows at my uni and bragging about your marks isn’t going to strengthen your shallow argument. I’ve made my point, you’re obviously going to carry on like an idiot with your condescending comments, just goes to show the calibre of students Macquarie is pumping out…
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The minimum wage should be abolished (but done slowly, as to avoid shocks)
This is really a non-argument, as anyone with an understand of microeconomics can tell you the ineffiecent outcomes of price prices floors.
Ironically, low-skilled laborers are actually the ones who feel the worst effects of wage laws.
Basically a minimum wage forces firms that utilize low skilled labor to reduce costs, as the increase in the cost of labor is not matched by an increase in the marginal productivity of labor.
Furthermore low-skilled labor usually producess goods and services sold in highly competitve markets, meaning firms cannot 'absorb' the costs, i.e they must reduce their labor force in order to compete. This means low skilled workers, who are willing to work at a wage below the legal minimum, are unable to find employment. Firms also in many cases substitute labor for less costly innovations, i.e many companies employ annoying automated answering machines to deal with customer service, if the minimum wage was not in place, people would be employed to do these jobs.
These laws are long past their used by date (i.e they were once important, but thats a different story), but sadly senile unionists continue to push them, allthough they're well intentioned, they fail to realise the inevitable consequences.
This is really a non-argument, as anyone with an understand of microeconomics can tell you the ineffiecent outcomes of price prices floors.
Ironically, low-skilled laborers are actually the ones who feel the worst effects of wage laws.
Basically a minimum wage forces firms that utilize low skilled labor to reduce costs, as the increase in the cost of labor is not matched by an increase in the marginal productivity of labor.
Furthermore low-skilled labor usually producess goods and services sold in highly competitve markets, meaning firms cannot 'absorb' the costs, i.e they must reduce their labor force in order to compete. This means low skilled workers, who are willing to work at a wage below the legal minimum, are unable to find employment. Firms also in many cases substitute labor for less costly innovations, i.e many companies employ annoying automated answering machines to deal with customer service, if the minimum wage was not in place, people would be employed to do these jobs.
These laws are long past their used by date (i.e they were once important, but thats a different story), but sadly senile unionists continue to push them, allthough they're well intentioned, they fail to realise the inevitable consequences.
People don't understand that minimum wage does far more harm than good.
They did a survey in the U.S and found that what prevented employers hiring more people was the fact that minimum wage made it too expensive and admit an economic crisis when profit margins are falling the last thing you want to do is make it costly for employers to hire more people.
They did a survey in the U.S and found that what prevented employers hiring more people was the fact that minimum wage made it too expensive and admit an economic crisis when profit margins are falling the last thing you want to do is make it costly for employers to hire more people.
imz economics guyths
OMG SWEAT SHOPS R SO BAD
Firstly, i don't like the term "sweatshops" you media brainwashed naive prick. How else would you have it in those countries? Ok, we can just give those jobs to some lazy, fat (no gym going etcectec) Americans who will earn a considerably higher wage, and thus us, the consumer, will pay a highly inflated price. Ok, lets not give anyone in China a job because they have a minimum wage set at $14.42 an hour (PPP adjusted) and let those people die of poverty related causes. The wage they get paid is a fair rate, in which they can provide themselves a reasonable standard of living they would not have been able to otherwise, if they jobs were given to over-priced and unproductive Americans. The MNC's that engage in these greenfield investments are only making smart business decisions so to which they can maximise profit AND they are reducing poverty in these nations.
YEAH UR DEF RIGHT CHINA WOULD BE WAY BETTER OFF IF IT DIDNT INTRODUCE THE "OPEN DOOR POLICY IN 78"!!!! ALL THESE SWEATSHOPS WOULDNT EXIST!!!
Oh thats right, most of the population would still be living in the country side struggling to make two ends meet.
Do you really think we will be able to rely on our services industry to survive for much longer? Manufacturing is already gone. What about when these nations specialize in the services we derive our capital from, and we can no longer compete there either? Maybe then the importance of reducing the safety net/ ABOLISHMENT and de-regulation of the workplace may take place. I cannot wait for this day. JH 96-06 x0x0x
IN SHORT, A firm will not survive if it operates at uncompetitive margins for two reasons. Firstly, it goes against ALL producer theory thought in how firms operate. Secondly, other firms will enter the market and cut-price the other firm.
Ethics and economics are not strongly correlated. Howver, from my readings of many scholarly articles, most scholars agree that a strong ethics base will lead to higher LONG term profits. Sweatshops are daaa bomb and so is the minimum wage so firms can enjoy a higher level of flexibility in the wage setting determination.
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There have been a lot of talks over minimum wage. Unlike most retailers, Costco is siding with President Obama in his call to raise the federal minimum wage to $9 an hour. In fact, it would do the President one better, supporting a minimum hourly wage of $10.10. Article source: Raising the minimum wage.