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Why minimum wage hurts minimum wage earners. by erroneous-logic

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· @erroneous-logic ·
$1.17
Why minimum wage hurts minimum wage earners.
http://i63.tinypic.com/razzpu.jpg

There's been, and still is, a lot of talking and arguing and screaming, and even a bit of throwing things at people, around the topic of minimum wage, and whether it's good or bad and should it be higher or lower or even exist at all. 

For many people, it's a very emotive subject. It ties in very closely to home and family and survival, because it can directly affect a person's ability to keep and/or take care of those very important things. 

But that's not the point of this post, the point of this post is, how does it hurt the low wage earners? At first glance, it seems that earning more money can only help those at the low end of the income scale.

Truthfully, minimum wages are merely the carrot at the end of the stick. It urges us forward, but in the end, we never catch the carrot. In this case, the carrot is a sustainable wage that allows people to maintain a decent standard of living.

http://i66.tinypic.com/552omu.jpg

Minimum wage is simply a tool that is used to urge the loyal steeds of the electorate ever forward, in order to keep them giving their time and energy into a system that has been constantly rigged to move money from the poor to the powerful and wealthy. And, ultimately, it ends up hurting the low wage earners infinitely more in the long term. It does this by removing entry level jobs from the market. No one wants to pay a checkout bagger the same wage as a shift manager, after all. 
And, in fact, the shift managers wouldn't want to do their job if they could get the same pay for the much easier task of putting groceries into bags. Forcing stores to pay them a higher wage forces them to raise the wages of *everyone* in the store, in order to keep experienced employees who bring more value to the company. In order to offset this, however, they often have to consolidate positions(i.e. combine the work of two separate jobs into a single position), or eliminate them entirely(like with self checkout lines). 

So, minimum wage helps give the *appearance* of helping low wage earners, but in the end, it makes it harder for them to find jobs in the first place. And the crazy thing is that, often, when someone's job is eliminated due to increases in the minimum wage, they often blame the *employers* for being 'cheap'.

http://i63.tinypic.com/2h7i5up.png

Of course, many people will disagree with this, but disagree all you want. It won't change the reality of numbers and business opportunity. If you want to show compassion to the poor, if you want them to have opportunities to provide for and improve the circumstances of themselves and their families, stop regulating their jobs. Stop telling them they have to get this license and that degree and a business permit. And *definitely* stop telling them they can't hire people willing to work for less than whatever arbitrary amount has been decided as the 'minimum'. Simply stop making it illegal for poor people to start their own business. Barriers to entry into markets are what keeps poor people poor, not the failure to point a gun at the heads of their employers until they have to either fire them or go out of business.
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@doitvoluntarily · (edited)
let there be freedom in wage-setting! 
https://i.ytimg.com/vi/BcZ-DaRkj5g/maxresdefault.jpg
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@erroneous-logic ·
Let there be freedom in all voluntary transactions!
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@intelliguy ·
You suggest that people shouldn't have to get licenses, permits, obey regulations, raising the barrier to entry to start a business, etc.

The government employes hundreds of thousands of people doing that..

What should these hundreds of thousands of people do instead?

(I'm semi-sarcastic) ... lol.  Interested in your answer, and I do agree with you.
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@erroneous-logic ·
That's a fairly legitimate question. And the answer is, they'll get a job working for someone else who needs a desk jockey to push some paperwork around, or they'll get some other kind of job, or they'll start their own business since it will be much easier to do without them siccing the local enforcement on you for not making their jobs meaningful. 
I mean, what if all their jobs disappeared tomorrow? Sure, there would be a time of panic and freaking out. That would be inevitable. But it would sort itself out over time. Contrary to the popularly expressed belief of politicians, people, left to their own devices, will not simply sit on the floor and starve to death. They'll find something to do to feed themselves. Many of them will probably start businesses of their own. Leave the market alone, and people will *sort their shit out*.

Here's a question for you. Those people are actively participating in an organized effort that makes it much more difficult for the average person, let alone a poor person, to start a business or get a good job, and thus improve their standard of living and that of their family. *Should* their jobs exist?
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@kaylinart ·
I love this! I always hear stuff about "They need to raise it" etc. I think they should get rid of it all together, If they make it so an employer can pay whatever they choose. Then more people will get paid based on worth, Because someone who has a lot of experience won't work at 7.00 an hour, They'll negotiate a different pay amount. I feel like by removing it all together things will become somewhat more balanced.
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@erroneous-logic ·
Yes, although simply getting rid of minimum wage won't fix the jobs issue. You need to stop requiring all the expense of the fees and the fines and the permits and licenses  for new businesses. Small business are, and have always been, the largest employer. All the layers of restriction prevent them from being formed in the first place, which does nothing good for the price of labor, from the perspective of the worker.
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@theonelaw · (edited)
What you said describes so well  one big reason why I left the USA all those years ago. 
I did not wish to become a boiled frog.
Wish it were fixable, but it ain't.

![The One Law]http://the-one-law.international/Data/TheOneLaw1rc72.png)
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@patrice ·
I don't think we need to get rid of it. Otherwise when the job market is like this there will be those working for $2-$3/hour.  I think the minimum wage should be set by the local government, even at the city level.
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@erroneous-logic ·
So then you'll simply have the local government dictating who is employable and who isn't. And watch cities with higher minimum wages die as all the jobs move to the next town over.
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