zlacker

>>tysone+(OP)
A few threads seem to believe that the minimum wage is high enough / need not be increased. I don’t actually want to argue about mechanism, but think that it’s imoortant to note that the math says our (current) minimum wage is demonstrably insufficient to remove poverty.

With the Federal minimum wage currently at $7.25/hr, that’s just $15k/year at full-time. That puts many minimum wage workers below many countries’ average wages [1]. But that’s before adjusting for purchasing power parity.

Being a single earner on minimum wage effectively guarantees you and your family will be in poverty in the US. That is effectively not true in most countries in Europe, even the poor ones. You don’t get to live well or anything, but you certainly aren’t planning on poverty.

[1] California, and San Francisco in particular, have a higher minimum wage but also higher expenses. Worse, many low-education workers are waitresses, which often have a “tipped minimum wage” as low as $2.15/hr before tips (again, San Francisco doesn’t do this, but it’s expensive to live here).

>>boulos+Aj1
No minimum wage is able to remove poverty. Set it too low and it has no effect, since it will be below the price you are able to get on a free market. Set it too high and fewer jobs will be available, and thus less people are able to earn money to fight their poverty.

>>patric+Tm1
That’s theoretically true, but we’ve (seemingly) never come close to that in the US. Moreover, as the article reminds us, the minimum wage has been drastically higher (in real terms) than it is now.

Regardless of the correct level before causing a crowding out of employment, what do you believe the purpose of having a minimum wage is (if not to prevent poverty)? Why not just let the market decide?

Edit: I mean this seriously, and don’t intend it as an attack. I’m (personally) unclear on the perceived purpose of the minimum wage.

Edit 2: like many folks, my “we’ve never come close to it” is influenced by http://www.nber.org/papers/w4509 and similar studies, and I’m aware of the opinions that the study was flawed or doesn’t generalize (e.g., https://www.google.com/amp/s/www.forbes.com/sites/timworstal...).