Sunday, January 29, 2017

The Low Price Of Living

Why low wages are cheaper for everyone:
As far as welfare costs go, there is no way the United States welfare system would be better off with more unemployment and businesses shrinking because of an artificial hike in the price of labor. Even if some workers at Wal-Mart, McDonald's, or similar employers receive payments from various state and federal welfare programs, these payments would have to be higher if it weren't for the low-skilled, often entry-level jobs provided by these companies. Recent experience has shown that drastic minimum wage increases in many cities and states have corresponded with welfare cost increases.

For evidence that arguments against the minimum wage are mere corporate fearmongering, minimum wage proponents often point to cities that have raised the minimum wage and not seen their economies fall apart. But this tactic misunderstands the argument against raising the minimum wage. As Tim Worstall rightly points out, the argument has never been that a $15 minimum wage will result in a "howling wasteland of huddled masses desperately looking for a job." The point is that there will be less people with jobs than there otherwise would have been without an increase to the minimum wage.
Working for a living means earning what you're worth, not what you demand...

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