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re: Your fear of what happens with no minumum wage but a
Posted on: December 6, 2017 at 14:56:16 CT
JeffB MU
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minimum welfare standard:
"My problem is if you have a minimum welfare standard, and no min wage, companies will pay lower and then the difference will be covered by the welfare standard."
1. I don't believe that companies pay their workers more because they think those workers need more to survive on. They pay wages based upon supply and demand, just as other prices are set in a free market.
Why don't companies lower the wages of more highly paid employees and contractors down to the minimum wage the government will allow them to pay?
The answer, of course, is that they are competing against other employers and are also subject to the supply of labor available to them at a given wage level. Those constraints are there regardless of what the government mandates.
If they could pay employees $1 per hour other employers will try and hire them away at higher wages and eventually they will come to an equilibrium point where the supply and demand for workers will dictate the wage level.
"My problem is if you have a minimum welfare standard, and no min wage, companies will pay lower and then the difference will be covered by the welfare standard."
1. I don't believe that companies pay their workers more because they think those workers need more to survive on. They pay wages based upon supply and demand, just as other prices are set in a free market.
Why don't companies lower the wages of more highly paid employees and contractors down to the minimum wage the government will allow them to pay?
The answer, of course, is that they are competing against other employers and are also subject to the supply of labor available to them at a given wage level. Those constraints are there regardless of what the government mandates.
If they could pay employees $1 per hour other employers will try and hire them away at higher wages and eventually they will come to an equilibrium point where the supply and demand for workers will dictate the wage level.
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re: Your fear of what happens with no minumum wage but a - JeffB MU - 12/6 14:56:16