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Originally Posted by knight_shadow
(Post 1993301)
Isn't minimum wage the topic being discussed? :confused:
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My bad, I meant you're looking at it as if minimum wage is natural.
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And when did I say that people aren't looking for entry level jobs?
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That would have to be your assumption to come to that conclusion.
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I'm reading your argument as "if companies can't hire you for pennies, they won't hire you at all." This doesn't makes sense, since minimum wage existed pre-recession when our unemployment rate was much lower.
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I wouldn't read it as that because it makes no sense. I don't know what a company would hire for, but I would imagine it to be whatever the market equilibrium wage rate was.
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ETA: I think the thing that's stopping people from getting job is the influx of job seekers. People who are used to making well above minimum wage are scrambling trying to get minimum wage jobs, but the applicant pools have swelled. This is not an effect of minimum wage in and of itself.
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Disagree, and here's why...
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If companies could pay, say, $3/hour to applicants, that doesn't mean that they'd hire more people. That just means they'd be getting cheap labor. That wouldn't have a massive effect on unemployment.
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So you think that Wal-Mart wouldn't, for example, remove one person's 7.25 salary for two people's three dollar salary and have those two people be personal shoppers around the store or some such. I mean, this is getting theoretical...but you could vastly improve customer service if you could double the amount of people you had working in your store. Improved customer service could mean a great deal more business, etc. And companies wouldn't be getting "cheap labor" they would be getting whatever labor the market demands. Currently, there really aren't many people on minimum wage (relatively speaking), which means that companies AREN'T being cheap...when they certainly could be.
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Originally Posted by Drolefille
(Post 1993304)
I think the assumption that employers will hire more people at lower wages instead of the same number of people at lower wages is an optimistic one on behalf of anti-minimum wage proponents.
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It is your assumption that it is an optimistic one. We have not seen it in practice, so we cannot say.
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EW if you're anti-minimum wage and anti-TANF and other welfare/entitlements... what are you going to do with someone who now might be working but doesn't make enough to eat? Or feed their kid? Or pay rent?
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Well the government does a great deal to harm these things, so it would be partially their fault. This includes taxes on food, income, apartments, etc, etc. Food taxes especially are incredibly anti-poor. Obama broke his promises of not raising taxes on the middle class and the poor by raising the tobacco taxes, where cigarettes are overwhelmingly smoked by the poorer classes.
If we had more money to spend to create jobs, we would have more money to give to other people. I believe I am correct in saying that the United States is the most philanthropic nation in the world. Just imagine if we had more of that money in our pockets to spend correctly instead of massive waste by the government.
I absolutely hate Rush Limbaugh...hate hate hate. Ignorant and misguided. But he did say this. "If I knew that my taxes were going to the most needy and that it wasn't incredibly wasted by the government, I would ask for more taxes." That's sort of how I feel.
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I highly recommend Morgan Spurlock's Minimum Wage episode of 30 days. As it is, a couple working on minimum wage can hardly support themselves assuming nothing bad happens. Then comes the ER bill for an infection or injury.
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Watched it awhile back. Did it really have any affect on you?
"It would be much truer to say that money is one of the greatest instruments of freedom ever invented by man. It is money which in existing society opens an astounding range of choice to the poor man, a range greater than that which not many generations ago was open to the wealthy."
- F.A. Hayek "The Road to Serfdom"