Trouble is tho OJ employees will pay whatever absolute minimum is, to maximise their profits. With high unemployment and hard times that can be very low. At better times employers have to offer better wages to attract employees.When you set a minimum wage you kill jobs. Plain and simple. It makes the politicians look good and pleases all the people on the left but the fact is you stop jobs coming to that area.
You also kills opportunities for certain groups to get any work at all - Down's syndrome sufferers (if we can say that) used to get all sorts of work doing very very simple stuff - because it was worth the while of certain empolyees to pay them a certain wage (as low as £4/hour - but for what they could actually achieve that was all they were worth) - many if not all of these jobs have gone now with the minimum wage requirements - and it leaves those still in work feeling like they're 'on charity'.
Where do the jobs go? Abroad - where people will work at market rates. Or companies (like Macdonalds) speed up the use of robots - because they don't cost so much.
The rate is not determined by what employers should or could pay its determined by minimum they can get away with. Rather like the price we sell things at, its nothing to do with the value its what the market will stand but in reverse. Workers need protection, otherwise employers would pay next to nothing, when they can.
Extend your argument and we go back to miners digging out coal for 5p an hour. We, ve seen enough worker exploitation in our country to know there is some protection needed.
If I couldnt pay an employee more than minimum wage I, d be changing the business.
People should not have to work 12 hour days, 6 days a week to only survive, which is what our current minimum wage equates to.
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