We all ready pay a starting wage of $15.00 and hour plus a top end full benefit plan, 401k and annual bonuses. In addition there is the option to work 10-20 hours of over time a week. We are in the top end employer for our area where the average wage is $11.50 an hour
So rather then mindless cling to your ignorance base dogmas pry open your welded shut mind, and try just this ONE time, to learn something about how the world really works.
This is a universal problem for US employers because of the stupid polices of the US Federal Government in response to Covid. The mindless sloganeering by the Freeper Know Nothings is just an example of living in denial
Supply and Demand and the Labor Market
Please explain how the law of supply and demand works with respect to the labor market.
The supply of labor, like the supply for other services, merely indicates how much labor workers are willing to offer at various prices. The supply curve for each worker will be different as each worker has different opportunity costs and preferences.
The demand for labor indicates how much labor a firm desires at different prices. The demand curve for each firm will differ as each firm faces different labor substitutes (differing rates of potential capital substitution, for instance), preferences, demand curves for the products they produce, and alternative employments for their resources.
Wage rates are simply the price of labor and as such, are determined like all other prices on the market. The intersection of the supply and demand curves for labor indicates the equilibrium, or market clearing, wage rate for certain types of labor. (In a free economy, unhampered by government regulation, wage rates for the same type of labor tend to equalize across markets).
This wage rate at the point of curve intersection tends to equal the discounted value of the marginal productivity of labor (DMVP). I know that sounds like a mouthful but it simply means that workers tend to earn the market value of what they produce (less the rate of interest).
Any worker employed for less than this amount will likely be bid away by another firm, as the firm stands to earn profit by doing so. The process of firms hiring away laborers earning less than their DMVP pushes the wage rate to the point where no firm stands to generate additional profit by bidding away the worker. At this point, the wage rate equals the DMVP. This argument, of course, assumes an efficient, undistorted market.
Big deal. That is an arbitrary number. If 15 doesn't work then go 16. If that doesn't work then 17. See how it work? A child can figure it out.