Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Austrian Economics, a lens on everyday reality -- Ignore unavailable to you. Want to Upgrade?

To: Wildstar who wrote (189)	4/23/2003 12:00:40 AM
From: Don Lloyd	Read Replies (2) \| Respond to of 445

Wildstar, A couple of years ago, you had a conversation with ahhaha about minimum wage laws and the marginal worker. Would you be so kind as to revisit your point? I don't necessarily remember what my point was, but any fixing of a minimum price will potentially limit demand, and certainly will cause unemployment for workers of marginal skills. No employer will pay more for any worker than the value of the services received. If a minimum wage is implemented, the employer will and must adjust by reducing fringe benefits, reducing full time to part time to avoid the law, etc. The proponents of minimum wages or increasing existing minimum wages claim that the workers are currently not making enough to live on. This may well be true, but if so it means that the workers must be holding more than one marginal wage job. In this case the result of raising a minimum wage will NOT be to increase the marginal worker's wage by 20%, but rather to tend to destroy BOTH of the worker's marginal jobs. Was there something else you wanted? Regards, Don