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@jsimicConstitution3yrs3Y
@B5PCWKN 12mos12MO
Labor is a good that behaves through the law of supply and demand. When looking at a supply and demand graph, you see the equilibrium point where the supply and demand of labor meet; that point is the market-price (or wage) for that particular job. When there is an effective price floor, the supply of labor is forced to the right, while the demand of labor is forced to the left. This is a surplus of labor (also known as unemployment). There are plenty of examples in history of price controls having this effect on the market, such as in the 1970s during the Nixon Administration.
@9KGV7C32yrs2Y
Because of the nature of supply and demand curves, any requirement of minimum wage only serves to block the possibility of certain jobs. Employers won't take losses, they will lay off employees who fail to create the value equivalent to the set minimum wage. At the end of the day, if you are forcefully redistributing value in a market in a way that is not consensual with all parties, there is a level of theft that is occurring.
@9FYF22C3yrs3Y
Nobody can force an individual to work for them, that's slavery, a clear violation of the NAP. On the other hand, it's also a violation of the NAP to step in and infringe upon the liberty of two individuals from voluntarily signing an agreement. If somebody is willing to work for a highly discounted pay, it is their liberty to do so.
@B9ZB2RSRepublican3mos3MO
@9HPKZKQLibertarian2yrs2Y
@9F88R843yrs3Y
Nobel Prize winning economist David Card published a study titled "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania ".
This study is often considered by many as empirical evidence that raising the minimum wage does not resultt in higher unemployment, but that's not what the study is about.
As David Card himself stated: "Contrary to what everyone thinks, what came out of that study is not that we should raise the minimum wage, but its rather a different way of thinking about how wages are set"
The study shows that a minimum wage increase will only have significant negative effects if it is set below market levels or is not set in a period of growing inflation, leading to unemployment.
@49XJS34Republican 2yrs2Y
Setting wage standards, first of all, prices out certain individuals whose talents may not be worth what the minimum wage is. Also, raising the minimum wage puts other higher earners at risk of having their labor devalued through product inflation, which would occur from a minimum wage hike that wouldn't reflect those whose wages would not be increased by the new minimum wage.
@9G9K67X3yrs3Y
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