[quote=EconProf]Good point JohnAlt. There seems to be an automatic assumption among advocates of minimum wage hikes that all low paid workers are exploited. The fact is that their productivity tends to be low, so their contribution to the firm does not justify an arbitrary wage hike dictated by the government. However, once they prove themselves through experience, promptness, learning, etc., a rational, profit-maximizing boss will pay accordingly (or risk losing them to a competitor). That’s our market system, greatly simplified.[/quote]
It’s a simpler discussion when you realize the beneficiary of minimum wage isn’t the worker, it’s the community the worker is in.
JMHO, a living wage prevents the kind of low expectation sprawl that prevents real innovation and opportunity for entrepreneurs and want to be SMBs. Whether food truck or furniture, its niche trendy expensive or walmartesque commodity.
