Ceasar Valeroso
2006-02-10 19:10:06 UTC
Why do employers of unskilled labor support the minimum wage? Answer,
it keeps wages low. These employers don't have to collude in secret with
each other to set wage levels, because the government does it for them. It
is unspoken knowledge, that if all the minimum wage laws were repealed, the
free market and the competition for unskilled labor would cause a bidding
war that would raise the defacto minimum wage to over $10 an hour. Of
course as long as there is a minimum wage, business would want to keep it as
low as possible, but their ultimate nightmare would be the total elimination
of one. Sure some journalist would discover some guy in podunk usa, washing
dishes for 50 cents an hour, but the vast majority would be making at least
double what they were before the law was repealed. But business doesn't
have to worry, because most people want their cheap fast food, etc, and
minimum wages keeps those items cheap for them.
it keeps wages low. These employers don't have to collude in secret with
each other to set wage levels, because the government does it for them. It
is unspoken knowledge, that if all the minimum wage laws were repealed, the
free market and the competition for unskilled labor would cause a bidding
war that would raise the defacto minimum wage to over $10 an hour. Of
course as long as there is a minimum wage, business would want to keep it as
low as possible, but their ultimate nightmare would be the total elimination
of one. Sure some journalist would discover some guy in podunk usa, washing
dishes for 50 cents an hour, but the vast majority would be making at least
double what they were before the law was repealed. But business doesn't
have to worry, because most people want their cheap fast food, etc, and
minimum wages keeps those items cheap for them.