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To: Amy J who wrote (17245)	2/13/2004 5:56:51 AM
From: Oblomov	Read Replies (1) \| Respond to of 306849

>>But does creating a global min wage create a similar issue? >>I sort of doubt it. What is the risk? I assume it creates >>higher unemployment and am wondering what else? A global police state.

To: Amy J who wrote (17245)	2/13/2004 2:23:43 PM
From: gpowell	Respond to of 306849

Do you have concrete examples? Santa Clara Valley, Ca: long stem rose exporting, fruit exporting, canning production, cereal production, substantially all the silicon semiconductor manufacturing plants, Airline maintenance, Amusement parks, defense related manufacturing, military bases - all lost over the last 40 years. Yet more jobs and wealth exists today than if those industries been protected and not allowed to downsize in favor of higher productivity activities. Now apply that example for the nation as a whole. What if we mandated that no farms jobs could be lost - say in 1900? When does a person know when the system can handle a global min wage without taking the entire system down? I am not sure what you mean by “bring the system down.” Or that minimum wages will cause more prostitution – most prostitutes I have known make a pretty good living. Minimum wage will cause a misallocation of resources. At some minimum wage above a market rate, not only does this reduce the number of jobs, but also individuals will be induced to work when they would not have chosen to work at the market rate. This means some individual, who would have freely chosen to work at the market rate, will not be able to find employment. This is not efficient.