I'm sure that's been great for small businesses, inflation, and hasn't sped up outsourcing to China at all...
If the labor only produces $14 an hour but the employee costs the employer $20 an hour (salary + benefits) they have to operate at a loss, increase prices (inflation), lay off workers, or outsource the labor.
The market corrects itself. If employers struggle to fill positions, they just make those jobs more appealing with higher pay or more benefits.
If a business can only earn $14 an hour from a worker, thats not a viable business.
Small business has the option to pay a small handful of related family members on a cash only basis. Big business doesn't have this option.
I think the issue here is not enough cash flowing in the economy to create upwards pressure on wages. In Australia its easy to find high paid jobs. Forklift drivers and welders do pretty well here.
Skill trades do well here too. But that's part of the argument against artificial wage increases. Minimum wage jobs are for students, not for raising families. If you're trying to raise a family on minimum wage, you failed at developing a more valuable skill.
The market will correct itself and pay what they need to in order to maintain the workforce they need. Low skill jobs will always pay less because practically everyone can fill that low skill job.
Australia has a good solution to that as well, by having a lower minimum wage for people younger then 21. You see, $24 is kind of fairly standard for adults, but that doesn't apply until 21. This causes a thing to occur in McDonalds jobs where all workers bar the store manager are young people.
We don't have this thing where adults end up working these types of jobs for life. So if you did the same tiered approach to minimum wage, it would have that type of effect. It pretty much instantly removes adults from entry level student type jobs.
It creates an incentive to employ only young people. However it also creates an incentive to employ migrants on a cash only basis, and cash jobs here are very common.
Can't believe you have people paid less then $15. Meanwhile in Australia, $24 is the norm ;)
I'm sure that's been great for small businesses, inflation, and hasn't sped up outsourcing to China at all...
If the labor only produces $14 an hour but the employee costs the employer $20 an hour (salary + benefits) they have to operate at a loss, increase prices (inflation), lay off workers, or outsource the labor.
The market corrects itself. If employers struggle to fill positions, they just make those jobs more appealing with higher pay or more benefits.
If a business can only earn $14 an hour from a worker, thats not a viable business.
Small business has the option to pay a small handful of related family members on a cash only basis. Big business doesn't have this option.
I think the issue here is not enough cash flowing in the economy to create upwards pressure on wages. In Australia its easy to find high paid jobs. Forklift drivers and welders do pretty well here.
Skill trades do well here too. But that's part of the argument against artificial wage increases. Minimum wage jobs are for students, not for raising families. If you're trying to raise a family on minimum wage, you failed at developing a more valuable skill.
The market will correct itself and pay what they need to in order to maintain the workforce they need. Low skill jobs will always pay less because practically everyone can fill that low skill job.
Australia has a good solution to that as well, by having a lower minimum wage for people younger then 21. You see, $24 is kind of fairly standard for adults, but that doesn't apply until 21. This causes a thing to occur in McDonalds jobs where all workers bar the store manager are young people.
We don't have this thing where adults end up working these types of jobs for life. So if you did the same tiered approach to minimum wage, it would have that type of effect. It pretty much instantly removes adults from entry level student type jobs.
It creates an incentive to employ only young people. However it also creates an incentive to employ migrants on a cash only basis, and cash jobs here are very common.