Recently, on www.quora.com this question was asked:
What point is there for governments setting a minimum wage if that wage isn’t enough to live on?
Here is the answer from Glass of Scotch.
Raising the minimum wages is simply a ridiculous notion and only gives the “sheeple” a false sense their leaders are helping them. If they idea actually worked, why not simply institute a minimum wage of $100 per hour or $1000??Better yet, simply send out a check to every person for 1 million dollars.
Wages should be based on a persons willingness to do the work.
Say you have a $10 minimum wage, but at 5 dollars you could employ twice as many people? Would it not be beneficial to lower the minimum wage?
What most do not realize in a free market system (see Adam Smith) and what is lost in ignorance, the consumer is the one who holds the power, not business. The consumer calls the shots…what will they pay for or not. If wages fall because the individual is wiling to work for less and there is less money to be spent….business will/must innovate to meet the consumer. Thus the creation of lower costs…..deflation. Unfortunately, while deflation is great for the consumer, it is hated by Governments and established business who want to find short cuts to staying in business.
Ideas such as set minimum wages prevent full employment and low interest rates (flooding the world with cheap money) simply gives business a way out. A true free market is filled with competition, keeping the feet of business to the fire at all times…..Not the perversity we have now.
When broken down to their rare parts, a Free Market System or Capitalism (NOT what we have today) provides an environment where every man or woman is free to try and further their lives in of their choosing. Not guaranteeing success, but allows for the attempt. Failure, just as in success is a law of nature.
Socialism seeks to dictate on your behalf. Some how, someone has deemed themselves better at making choices for you. Socialism also seeks to legalize immoral behavior such as theft for the betterment of one group over another.
And to those who feel they are entitled to hire wages, simply…. because…..just remember what Unions and Pro Labour do not seem to understand, or they do, but simply want to keep collecting your money. Unless you make yourself valuable in the labor market, this will happen, if you cost too much and can be replaced.