Minimum wage

#1 12-03-2005, 06:39 PM

Good or bad?

Any references to morality and any clearly ideological viewpoints (ON EITHER SIDE) will be ignored. Factual evidence accepted only.

TomCollins · #2 12-03-2005, 06:44 PM

It's good if you like unemployment and inflation.

The Don · #3 12-03-2005, 06:44 PM

Bad: The supply of labor exceeds demand (in some circumstances when the minimum wage is above equilibrium) which leads to unemployment and an inefficient allocation of resources.

#4 12-03-2005, 06:48 PM

I am not sure what you mean by this. The supply of labour exceeds the demand? What does that have to do with minimum wage. That is the price of labour, not it's supply. Isn't it?

The Don · #5 12-03-2005, 06:54 PM

If the price of labor is above the market equilibrium (as is the case when the government determines wage prices), then more people will want to work than employers are willing to hire. Basic economics. This isn't the case all of the time (when equilibrium is above the minimum wage there is no effect) but sometimes it is... primarliy causing unemployment.

#6 12-03-2005, 07:19 PM

Can you back this up with any evidence?

TomCollins · #7 12-03-2005, 07:29 PM

Economics 101.

Edit - added a link.
web page

BluffTHIS! · #8 12-03-2005, 08:36 PM

Minimum wage is what you get paid to 12 table $1/$2 limit games online.

Dr. Strangelove · #9 12-03-2005, 08:57 PM

only if you really suck

BCPVP · #10 12-03-2005, 11:31 PM

I'll quote directly from my econ textbook:

[ QUOTE ]
Here are 12 propositions with which at least 7 out of every 10 economists agree:
... * A minimum wage increases unemployment among young workers and low-skileed workers...

[/ QUOTE ]