Minimum Wage Proposal: $0.0010 May 2014 / Hostile Witness
You can’t make ends meet on 8 bucks an hour? I can see where that would be a problem. When did fast food jobs become jobs for family breadwinners? Fast-food jobs are for high-school kids.
You want to make $15 an hour? Simple: get a job that pays $15 an hour. What’s stopping you? Other than your lack of skills, education, motivation and accomplishments? If no employer is willing to pay you $15 an hour, then guess what? You’re not worth $15 an hour. You need to do something about that.
Why is $15 an hour the magic number? Why not $16? Or $17? Why not $50 an hour? At $50 an hour, everyone would make a nice 6-figure income and poverty would be a thing of the past, right?
If you raise the price of a product or service, the demand for the product or service goes down — at least a little bit. Is there a counterexample where raising the price of something makes the demand go up? I can’t think of one.
Let’s go a step further: If you set the price of a product or service at an artificially high level, e.g., double the market value that people are currently willing to pay, the demand for the product or service will fall off a cliff.
Example: Instead of setting a minimum price for labor, imagine setting a minimum price for cars: $30,000. What would happen? No effect on the market for cars that already cost $30,000+, but the market for Honda Civics, Toyota Corollas, etc. would dry up. No one wants to pay X dollars for something that’s worth a lot less than X dollars.
A lot of low-skill jobs have been or could be automated out of existence. Think about that the next time you pay a machine at a parking garage or tool booth, or use an ATM, or check out your own groceries at the supermarket.
I was in a sandwich shop the other day and there were no humans taking orders. Instead, there were several tablet-sized touch screens with card readers. Swipe your credit card and select your order.
Fast food restaurants can’t get rid of everyone overnight, but there’s nothing like doubling the cost of labor to get business owners looking at all possible labor-reduction options.
P.S. I didn’t cherry-pick that photo. It’s from a Salon article that’s actually supportive of a minimum wage increase.