Reply #72: That is entirely untrue. [View All]

Prices went up during the last ten years for many reasons, there is an unimaginable number of factors that come together to determine this (for example, Bush's "conservative" fiscal policies). Some places (NY is one) actually did see their minimum wages rise during this time.

Here is my case against the minimum wage. Forgive me if it's somewhat cut and pasted from the other thread:

Wages are determined by supply and demand, and the minimum wage is just a price floor on the labor market. As long as the minimum is below the wage set by the market, it does nothing. If it is above the natural wage rate then it will result in either shortages of jobs, higher prices, or lowered profit margins. Considering the likelihood of corporations voluntarily cutting back their profits, the first two options can be assumed to be the more likely ones.

Even when businesses would like to cut back their profits to avoid job loss or price hikes, it is not always possible. I was working in a grocery store the last time NY raised its minimum. The store could not afford to cover the cost entirely from its own pockets, and couldn't afford to raise prices (as they were already failing to compete with WalMart). The only thing they could do was to stop hiring new people and cut employees hours.

While it didn't make a huge difference to current employees (loosing a few hours and gaining a few dollars made most break even), it did make a difference to customers (who now had less help and longer lines to face) and prospective employees (who now had to look for work elsewhere). While employees got to work a few less hours and still make the same money, the business as a whole suffered. The only real winner was the local WalMart, which could afford to absorb the shock of minimum wage much easier then our store.

I agree that people should make enough money to live off of, but the minimum wage is a completely ineffective way to do so. I'd much prefer to see government working to fix the countries health care system, protect and promote union activism, and ensure educational opportunities. All those things would do far more to help workers get a leg up then the minimum wage ever can.