✉ Minimum Wage | Good or Bad Idea?

Minimum wage - good or bad idea? What are the consequences of the minimum wage? Learn Austrian Economics in a fun way!

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[uncharted]

I'm told from the news that worker productivity has increased but wages are stagnant. Why is this?

[DPPZ]

A system that functions without regard to the consequences of human life cannot exist in a state that relies on those very same people for its leadership. Regardless of how sound an idea is in theory, it's fundamentally incompatible with democracy if people are allowed to vote in their own interests against its existence. As long as the situation exists where companies are incentivized to reduce labour costs and this results in difficulties for people who are trying to feed their families you will end up with a state that has either strong Union or wage laws in a democracy. If you don't like it, perhaps you should spend your time advocating for a one party authoritarian regime that is dedicated to capital more than people.

[qwertyuiop-cuve]

If it's so easy, why does the government not understand it?

[raffaelemancini]

It affects the workers making above minimum wage as well. If you are a high skill worker making $11/hour when your low skill co-workers are making a minimum wage of $6, you'll feel unfair and want a raise too when minimum wage is raised to $10.

[subhuman]

It's a severly bad idea. It leads to inflation. It's not different from asking to print more money. Now people have more amount of money to spent same amount of goods.

[nuraqilah]

i want to ask what are the pros and cons of government intervention in the market for necessity goods like egg, fish and chicken. Consider the effects to both consumers and producers.

[semaj]

I 50% agree with this and 50% don’t. If there wasn’t things like minimum wage certain groups would get what is considered minimum wage and others would get a lot less for doing the same job. I do agree that “minimum wage jobs” should be set aside for college aged (21) people and under. We need to get people young adults and older to have skills that would pay them more. Many times they don’t have the opportunities to do that because of other reasons

[demarcjohnson]

I think a lot of people who make these videos never worked a minimum wage job for a long period of time. The meta for wages has change since the minimum wage law was created and the employers have more knowledge on economic then the employee so even in a fair economy as long as the worker don't know the value of their work it's impossible for them to get a fair wage without government intervention.

[jra]

As an economist with post-grad studies I feel authorized to say that all of this is bullshit. Kind regards,

[SkullKing]

I think it's best to let the free market reflect reality. Starbucks or another major chain in a city can deal with a high minimum wage even if they have to fire some people but a little cafe in a rural area may only be able to pay an employee $5 an hour or go out of business.

[marunio]

Minimum wage is another form of bad intervence. It only raises the unemployment. If someone think he's earning too little money, he should change a job. Why an employer should pay anyone more money than he can?

[davidhughes]

All sounds good in theory!! But in reality it's much different. Tell me what a solo mum who doesn't have many skills and has to work in fast food can do to support herself and her kid on tiny wages. That is the reality. These min wage jobs are not just for young people starting out. The reality is that many people do these jobs while trying to support a family. Trade unions are absolutely essential to keep a balance between business and workers.

[sabbathunter]

So much BS in here where to start. OK let's start with minimum wage. In places like Denmark, minimum wages are much higher in places like a McDonald's, yet the prices are about the same. Which shows that just because the minimum wage is higher does not mean that prices will be higher. Nor is there higher unemployment among less skilled workers compared to the US, so that is thrown out too. Additionally, it isn't high school, or college kids working during the morning/early afternoon hours at a fast food restaurant, it is older people, not ones just starting out.

[Languslangus]

This is stupid. Most minimum wage people are unqualified workers doing physical jobs. And the minimum wage needs to sustainer them in their life, , the minimum wage is set so they can actually pay the bills and get some food.

[CarlWong]

Why can't they hire someone to narrate who knows how to pronounce English words correctly?

[Danified]

Minimum wage isn't just a safety net against food and shelter, it's a safety net against inefficient companies. If you as a boss can't afford to pay your employees, you're a crappy businessman and deserve to go out of business to make way for more competent entrepreneurs.

[lloydmoore]

If this is supposed to be a highly successful or even successful policy why is Americans is this present situation why do workers need to be given application forms to go beg federal government for assistance?

[zatrox]

this channel is wayyyy too much anti-government, you did bring up some good points like products and services being more expensive because of it, but you missed more important ones like being unable to scale a small business to have employees because of high costs and instead focused on stuff that are not really that related to the minimum wage. For example, job requirements getting higher and higher, this is mostly fault of too many people going to university thus making degrees worth less because there are just so many people with them and as such employers simply expect them even for the lowest position.

[TapajitDey]

The person who made this video lives in a utopian theoretical world, where no humans live, only theories do.
If someone is working the whole day and not earning enough to run his/her life, then what do you suggest should be done? Should they be killed to stave off the excess population?
Do you even know how taxes work? Who pays for the infrastructure which you use daily to generate your "oh so precious" profits?
A company is an idea given life by people working there, so any company that can't hire their employees giving them a livable salary should go out of business.
The purpose for building societies and governments and nations is to ensure a fair competition, but more importantly so that the people can share each other's burdens through co-operation and ensure everyone can live.
Your "free market" theory is a mathematical model that has no parameters representing any of that, making it a theoretical BS that should never be applied in practice without restrictions. The restrictions are there to make up for the inefficiencies of the theory, so if your model doesn't converge under that condition, you need a better model bro.

[NiteDrivr]

Rise the Minimum Wage n Texas I've been poor my whole life