Minimal Wage Law Not Required

But then you have to throw the realities of life into the mix and, in real life, an employee would not have options like that because there is too little competition for employers when it comes to filling positions that pay the minimum wage. There would be too many company A's...taking advantage of those least able to do anything about it. Keep in mind that many if not most minimum wage earners are either young people or people with little education and little to no marketable skills so they will work for whatever wage they can get, keeping company A in business. Every large urban area in this country also has economically disadvantaged neighborhoods...many of them several square miles in size...where the majority of those employed earn the minimum wage. There will be no company B or C in these areas...only company A's. The employees will be the ones who suffer...along with their children...and the taxpayers will be supporting even larger food stamp and other assistance programs as this new class of worker seeks help from the government. Meanwhile, millions of minimum wage earners won't have money to spend in companies A, B & C, so business will fall and everyone suffers.

Gewcew, if that logic was right than there would be no one working in restaurants or fast food restaurants at all, because other jobs pay more so why would they not just all leave and go work somewhere that pays more? I mean, think about it. According to your logic the only way any company would ever keep their employees is if all companies pay about the same wage. Otherwise, people would just go for higher paying jobs. Well, that's a big fat DUH! Everyone WANTS a higher paying job, but not everyone can get one or is qualified to have one! That means there would be tons and tons of people who would be stuck working for $2/hr and not having anything to show for it.

well just remember that as minimum wage increases, unemployment increases. it is a known statistic that is almost fact. if an employer has to pay $8 an hour instead of $4 an hour, they will therefore cut back on the number of workers. in the situation that you pointed out, a perfect competition (aka free market), a slight change in price can offset the number of workers willing to be hired to 0. this is just a theoretical situation, we do not live in this perfect situation. there will always be people who are willing to work under and about thhe minimum wage.

most people should already know this.

So true! But whenever there is a minimum wage change, only new employees coming in at jobs that are at that level benefit! So not fair to the rest of us, who could also use a boost. But this is the best explanation of WHY we have minimum wage at all that I have read recently! Cool!

You also have to take into account what the buyer will pay for the goods and services. If the price is too high, because the employer has to raise them in order to pay his employees, he's going to loose business. People will go where the price is best. So, paying your employees too little, you loose employees. And paying too much, you loose business which causes you to loose employees. There should be a balance, and that should be left to business itself and not the federal government.

Actually, the minimum wage has nothing to do with 'stingy' employers--think about this: that rate hike is to help workers get out of debt! The cost of living is ridiculous in some states--I live in NJ. I couldn't find a decent job last year that paid much above the minimum wage because i'm trying to get my BA still. That raise would have been the first one I've received anywhere from another employer since 1999! I gave myself a raise when I worked for myself, making more in 4-8 HOURS a week for me, than working 40 for someone else! Unfortunately, the cost of living is so high here in NJ, that measely $7.25 doesn't go very far unless you have 3 jobs or live in a multi-job household.

Your post explains why we need this minumim wage law. It keeps companies from paying lower wages. So what if company D is paying more than the others. I'm sure they will demand more work be done or they need people with more education than the other companies. If not, everyone would be vieing for a job at company D and the positions would be full which would force people to take less pay at another company. That would force some people who are more qualified to take even less. Companies need to know they can not pay less than the minumim wage. I'm sure most companies would like to pay less and most would if there wasn't this law. To say we don't need this law is absolutely asinine.

Minimum wage keeps the economy going. People need to make more in order to spend more.

Of course the worst part is that minimum wage drives up the cost of labor comparatively to other countries. It is always ironic to hear Union workers specifically talk about jobs going over seas, never mind the fact that Minimum wage and Union costs directly cause that very effect.