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To: antaresequity

In addition, raising the minimum wage effectively creates a price floor for unskilled labor. This has the (almost) wholly undisputed effect of creating a surplus; where the quantity demanded is greater than the quantity supplied. For those of who have no problem imagining this in 'people' terms, this will price out of the market the very individuals whom it purports to help. The price goes up on something that almost everyone could 'get by' with on a reduced amount.


71 posted on 10/25/2004 7:44:46 PM PDT by AuburnMan
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To: AuburnMan
"In addition, raising the minimum wage effectively creates a price floor for unskilled labor. This has the (almost) wholly undisputed effect of creating a surplus; where the quantity demanded is greater than the quantity supplied. For those of who have no problem imagining this in 'people' terms, this will price out of the market the very individuals whom it purports to help. The price goes up on something that almost everyone could 'get by' with on a reduced amount."

It's actually worse than that. Take waiters and waitresses for example. Their take (salary + tips) on an night at a friend of mine's restaurant is about 150.00. If you are forced to give them another 1.00 per hour it takes about 30,000 out of the till per year (seats about 90). That staff member will go from making 150.00 per night to 157.00 per night, big score! That 30,000 will have to be recovered by either less service, higher prices or poorer quality. In the restaurant business this is a loser!

82 posted on 10/25/2004 8:01:21 PM PDT by Damifino (The true measure of a man is found in what he would do if he knew no one would ever find out.)
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