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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (184559)	3/15/2004 7:22:03 PM
From: TimF	Read Replies (1) \| Respond to of 1572987

Yes minimum wage help some employers by hurting their competition. That type of benefit would normally be considered passing a law or regulation to help a special interest. Minimum wage can also helped moderately skilled workers at the expense of unskilled workers. If the unskilled worker produced $4/ hour benefit to you and would work for $2 you might hire two of them over a moderately skilled worker who produces $8 per hour of benefit to his employer but charges $7 per hour for his services. But if the minimum wage is set at $5.50 per hour it make sense to fire the two unskilled workers and hire the moderately skilled worker. Of course there might be extra demand for workers of his skill level, as other businesses face a similar situation, so his rate might go up. The people who get hurt are the marginal employees who is priced out of the market, and the marginal businesses who only stay open by paying very low wages. Highly skilled workers and the wealthy might be slightly hurt as prices go up, but its mostly benefiting the moderately skilled at the expense of the unskilled. Tim