Tuesday, September 2, 2014

Mimimum Wage

Wages have to be high enough to attract enough qualified applicants for an open position.  If wages are that high, then market forces say they are high enough.  If there is a surplus of labor, then good candidates will work for less money because there is heavy competition for jobs.

With so many illegal immigrates to the US wages are kept artificially low.  Since they are here illegally and are typically here from poor countries they are willing to work for any pay at any job.  As a result the competition for low paying jobs is very fierce.  In the past, teenagers and others with little or no job skills would work for minimum wage jobs until they get job experience and work their way up the ladder.

Since women entered the workforce during World War Two and never left, the number of workers as a percentage of the population has been very high.  As automation has increased, productivity has increased and the need for workers has decreased.  Increasing the minimum wage is the wrong way to increase wages.  We need to take people out of the working population so that market forces will increase wages.  We need to create more jobs for those who need to work.  Having the government forcing companies to increase the minimum wage is not the solution to low wages; that's the view from the Hysterical Right Wing.

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