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Politics : Formerly About Advanced Micro Devices
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To: SilentZ who wrote (741273)9/23/2013 6:03:46 PM
From: Tenchusatsu  Read Replies (3) of 1578161
 
Z, I think this all goes back to the reason why I believe minimum wage should only set a reasonable floor on wages and not meet some arbitrary standard of a "living wage."

Even with the contract worker abuse that is prevalent in many corporations today, raising the minimum wage would not solve any of the problems you describe. All it would do is raise the cost of hiring permanent workers and drive more employers toward sub-contracting firms, where they can make up for the higher cost of labor by getting around having to pay benefits, overtime, etc.

Sure, the quality of work from contract employees would be lower, but that would be one of many consequences of raising the cost of labor. Higher unemployment would be another.

You would hope that CEOs would make up for the difference by reducing their own pay and making up for the difference, but that is a silly pipe dream. Even if you put a salary cap on CEOs, they'll always find a way around it.

(The idea that higher prices for products can also make up for the difference is also silly. Prices are determined by supply and demand, not by cost of production.)

No matter what, the free market is what ultimately decides what is a "living wage" and how much companies can get away with their cost-reducing tricks. Not the minimum wage.

Tenchusatsu
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