Eliminating the minimum wage (The effects Good or Bad)

You're replying with nonsense. We've already noted that capitalism tends to mass unemployment (and is also prone to economic crisis). We also know that wages will tend to fall with a shift in the labour demand (itself related to the product market through price). However, none of that disputes the importance of monopsony. And of course, like all of your previous efforts, you won't be able to dispute it either

 

As are you - you keep making your anti-capitalism assertions, supported by name calling, buzz words, and not much else.

How boring.

 

Employers could afford to pay more workers ? Yeah ? How many more workers could they hire when their sales plummet due to less money in peoples pockets ? You want to be selling cars or furniture in a town with thousands of people working for $2/hour ? S you can sit and watch your inventory not moving an inch ?

And if prices drop, that includes yours too. So your income drops. All this is going to make you afford more ?

 

I just need to understand why price of living goes down.

We had a massive economic contraction in 2008, and I didn't really see the cost of living go down. Housing lost its value, but rent stayed the same with no money to borrow to buy a new house. In fact I saw the opposite of this in many commodities.

The things people need to live, food, water, energy, HC, education seem to be on a track that increases no matter what the market conditions are.

 

An ignorant reply. Nothing I've said is inherently anti-capitalist (unless of course one refers to an alternative paradign associated with higher efficiency levels). The tendency towards mass unemployment is accepted in orthodox economics. I've also just confused you by referring to labour supply and demand. Again, best learn the basics dear chap!

 

Numerical25, refer to the posted topic “Consequences of repealing minimum wage rates”.

Respectfully, Supposn

 

You've chosen product that, relatively speaking, follow more closely supply & demand conditions. The real problem is that wages do not, with underpayment problems rife

 

There is a simple fact people will not work for less than a certain amount especially if a skilled worker, so eliminating the minimum wage would not likely have a huge impact. Say your a new High School grad it might actually be good they might work at Taco Bell for less say $3.50 an hour this would give them work experience and references. If they get more skilled and maybe go to school they would be worth more and will get more.

Naturally some will get stuck at low wages say the disabled or those who have issues but couldn't a city, county or state set a minimum wage why is this a Federal matter at all?