Consequences Of Repealing Minimum Wage Rates.

[phillip1882]

You all, I iterate the elimination of the federal minimum wage would create many additional lower wage jobs. The vast majority of those newly induced jobs would be what we now describe as sub-minimal wage paying jobs that do not justify the current $7.25/Hr. federal minimum wage rate.

ah good you understand that.

But the lack of a legally mandated specific minimal bench mark would be replaced with a market’s unspecific minimal bench mark amount. The unspecific amount would be the outcome of a “race to the bottom” and its purchasing power is severely less than the current legal minimal bench mark.

The minimal bench mark more or less affects all wages and salaries; the purchasing power of the median wage would be significantly reduced.

that's certainly true, but a fail to see how this is necessarily a bad thing, if purchasing power is reduced, prices also will fall down, they have to, otherwise businesses will go out of business from lack of customers.

Despite the increase of jobs which to a very great extent provide compensation with less than the current minimum’s purchasing power, the elimination of the federal minimum would be economically net detrimental.Due to wages lesser purchasing powers (unless we significantly increase spending for public assistance, national poverty will greatly increase.

there is so many things wrong with this paragraph i don't even know where to begin.

a lesser purchasing power will result in lower prices, meaning the purchasing power will stabilize fairly quickly, and perhaps even improve over time. yes everyone earns a lower monetary amount. but that just gives the U.S. a greater competitive edge globally. meaning we can start exporting goods rather than only importing them. i fail to see how earning 1 dollar an hour and paying 50 cents for a loaf of bread is necessarily worse than earning 100 dollars an hour and paying 50 dollars for bread. yeah earning 1 dollar an hour would put you below the current poverty line. but if everyone does it, then the poverty line shifts dramatically.

The purchasing power of the federal minimum wage now provides incomes for most of our working poor which do not qualify them for public assistance. The elimination of the federal minimum wage would greatly increase our numbers of working poor and if those working poor do not receive public assistance, USA’s rate of “real” poverty will also greatly increase.

again a lot of bad assumptions here. yes greatly increase the number of working poor. isn't it better to have a poor person working rather than simply collecting a check?

again, if everyone's wages decrease prices will follow suit.

[DFINITLYDISTRUBD]

A more realistic approach would be to freeze minimum wage and let the rest of the world catch up...thus giving economy time to equalize the balance between wages and the cost of living here as well as to achieve a balance between us and the rest of the world.

[labelwench]

Under the Rose, you argue our federal minimum wage doesn’t accomplish anything in Alaska. You’re describing a rate that’s apparently too low for Alaska.

Does the legal minimum do any harm? Would eliminating it improve anything?

 

Respectfully, Supposn

 

Actually, I reside in Whitehorse, Yukon, Canada, which borders Alaska and I have made a few trips to and through Alaska when racing sled dogs and showing horses so I have had slight opportunity to compare prices on some of the basic amenities such as food, fuel and accommodations.

 

Speaking specifically to the minimum wage in Yukon, the problem is that one person working 40 hours a week cannot afford to live on their wages. Period.

 

Rent is ridiculously high.

 

Public transit is quite limited, which adds to transportation costs to get to work, shop etc.

 

Social assistance pays as much or more than minimum wage, effectively eliminating any incentive to work, not that it is enough to meet the cost of living either.

 

Removing minimum wage would do nothing to improve matters. What is needed is an entry wage that can keep pace with the cost of basic living and social assistance that is not seen as a 'lifestyle choice'.