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
As far as I understand it, minimum wage helps people in employer markets. Prices would go down to zero or at least the minimum cost of living if people would fully compete for jobs in markets with more workers than jobs available.

Inevitably, the market for unskilled labor is an employer market because there will always be a supply of workers unless each and everybody has a job. However skilled somebody is, if he doesn't find a job in his profession, he falls back onto the unskilled labor market in every other profession.

It is correct that minimum wage prevents the existence of some jobs. But it ensures higher wages for all of the unskilled workers who create more value and who are not replaced by a lower bidder.

The jobs that create less value than minimum wage are still available for freelancers. Companies have to buy them as a product or service.

>>southe+oz1
> minimum wage helps people in employer markets

No.

Minimum wage helps software developers to take away jobs from low skilled workers (because it forces employers to automate low-paying jobs).

Most of workers are hurt by minimum wage limit. The higher minimum wage limit is - the more workers are hurt by it.

It does NOT matter if job market is "employer market" or "candidate market". The impact of "minimum wage limit" increase is the same: lower skilled workers lose their jobs to software developers and other higher skilled workers.