Originally Posted by Wolf359
Minimum wage does basically put a floor on the race to the bottom.
Minimum wage puts a floor on the price at which it's worth automating a job away. Combine that with artificially low interest rates so companies have a huge supply of almost-free loans to pay for that automation, and it's a recipe for mass unemployment.
At $5 an hour, it's not worth putting touchscreens into McDonalds' and encouraging customers to order with an app. At $10 it may be. At $15 it almost certainly is. So those jobs go away and they'll never, ever come back.
And, as others have pointed out, minimum wage hikes devalue the work of those in low-paid skilled jobs. I saw an EMT posting online recently that, once the minimum wage hike came through, he was going to quit and get a low-stress minimum-wage job because as an EMT he'd only be making about $1 an hour over the new minimum wage.
Minimum wage does basically put a floor on the race to the bottom.
Minimum wage puts a floor on the price at which it's worth automating a job away. Combine that with artificially low interest rates so companies have a huge supply of almost-free loans to pay for that automation, and it's a recipe for mass unemployment.
At $5 an hour, it's not worth putting touchscreens into McDonalds' and encouraging customers to order with an app. At $10 it may be. At $15 it almost certainly is. So those jobs go away and they'll never, ever come back.
And, as others have pointed out, minimum wage hikes devalue the work of those in low-paid skilled jobs. I saw an EMT posting online recently that, once the minimum wage hike came through, he was going to quit and get a low-stress minimum-wage job because as an EMT he'd only be making about $1 an hour over the new minimum wage.