Should the government guarantee full-time minimum wage?

Machjo

Hall of Fame Member
Oct 19, 2004
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Some here have accused me of not caring for the poor because of my opposition to minimum wage legislation, so I decided I'll turn the tables around with a question to those who support minimum wage legislation:

Do you support the government guaranteeing a full-time minimum wage to the unemployed, especially considering that some might be unemployed because of the minimum wage, especially among unskilled workers?

Now to some the following might seem contradictory even though to me the two are simply flip sides of the same coin, and that is that on the one hand I oppose minimum-wage legislation, and on the other I support guaranteeing the full-time established minimum-wage to the unemployed. In other words, if you insist on having a minimum wage, then ensure that those potentially affefcted are fairly compensated.

I'd like to know how many among you who support minimum wage legislation also support holding social security to the same standard as any employer?
 

Goober

Hall of Fame Member
Jan 23, 2009
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Some here have accused me of not caring for the poor because of my opposition to minimum wage legislation, so I decided I'll turn the tables around with a question to those who support minimum wage legislation:

Do you support the government guaranteeing a full-time minimum wage to the unemployed, especially considering that some might be unemployed because of the minimum wage, especially among unskilled workers?

Now to some the following might seem contradictory even though to me the two are simply flip sides of the same coin, and that is that on the one hand I oppose minimum-wage legislation, and on the other I support guaranteeing the full-time established minimum-wage to the unemployed. In other words, if you insist on having a minimum wage, then ensure that those potentially affefcted are fairly compensated.

I'd like to know how many among you who support minimum wage legislation also support holding social security to the same standard as any employer?

Are you saying a min wage for a person that is unemployed regardless of length of time?

How can you identify each person affected by a raise in min wage?
 

Niflmir

A modern nomad
Dec 18, 2006
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Leiden, the Netherlands
Yes, the government should care for the unemployed, the alternative is a very bleak organization of people that can barely be called society. Once upon a time this was simply provided by trades guilds and, where there were not enough tradesman of a particular trade, the Oddfellows. Then the monarchs got scared of the power of the guilds and forbade their existence. In order to avoid riots, the kings had to provide unemployment benefits in place of the guilds.

Is there a minimum wage in reality? Why are unpaid internships on the rise?
 

Goober

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Jan 23, 2009
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Yes, the government should care for the unemployed, the alternative is a very bleak organization of people that can barely be called society. Once upon a time this was simply provided by trades guilds and, where there were not enough tradesman of a particular trade, the Oddfellows. Then the monarchs got scared of the power of the guilds and forbade their existence. In order to avoid riots, the kings had to provide unemployment benefits in place of the guilds.

Is there a minimum wage in reality? Why are unpaid internships on the rise?

Do we not have social assistance? Yet we know it is not enough- yet when to generous many do not seek work - catch 22 -
 

Machjo

Hall of Fame Member
Oct 19, 2004
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Are you saying a min wage for a person that is unemployed regardless of length of time?

How do you know he hasn't been unemployed for so long because of the minimum wage?

How can you identify each person affected by a raise in min wage?

You can't in most cases, but since it's reasonable to suppose than the minimum wage could reasonably be a reason for his unemployment, it would therefore seem reasonable, no?

Just for the record, though I'm in favour of a decent social security programme, skills raining for the unemployed, and other such hand-ups, I do oppose legislating people out of work with minimum wage legislation. At the same time though, if we are to introduce such legislation, it would seem that the unemployed are entitled fair compensation, no?
 

Niflmir

A modern nomad
Dec 18, 2006
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Leiden, the Netherlands
Are you saying a min wage for a person that is unemployed regardless of length of time?

How can you identify each person affected by a raise in min wage?

The same way you identify a person who got lung cancer because they smoked as opposed to just getting lung cancer naturally. I don't think you will get very far with individualistic arguments. The argument against minimum wage is usually a sort of utilitarian argument on the grounds that society will be richer, where society is measured on cross section ignoring the standard deviation.

How do you know he hasn't been unemployed for so long because of the minimum wage?



You can't in most cases, but since it's reasonable to suppose than the minimum wage could reasonably be a reason for his unemployment, it would therefore seem reasonable, no?

Just for the record, though I'm in favour of a decent social security programme, skills raining for the unemployed, and other such hand-ups, I do oppose legislating people out of work with minimum wage legislation. At the same time though, if we are to introduce such legislation, it would seem that the unemployed are entitled fair compensation, no?

The difficulty with this argument is that it is short sighted. Are you even sure that minimum wage laws decrease unemployment? If we assume that wage follows a supply curve, then there are individuals willing to work for basically nothing. It is cheaper to higher these people for 70 hours a week than to hire one of these people for 35 hours a week and then a person who demands slightly more money for 35 hours a week.

Minimum wage can be seen to decrease unemployment therefore. Since with minimum wage legislation, it is much cheaper to hire 2 people at minimum wage for 35 hours a week, than one person for 70.
 

Machjo

Hall of Fame Member
Oct 19, 2004
17,878
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Ottawa, ON
Yes, the government should care for the unemployed, the alternative is a very bleak organization of people that can barely be called society. Once upon a time this was simply provided by trades guilds and, where there were not enough tradesman of a particular trade, the Oddfellows. Then the monarchs got scared of the power of the guilds and forbade their existence. In order to avoid riots, the kings had to provide unemployment benefits in place of the guilds.

Is there a minimum wage in reality? Why are unpaid internships on the rise?[/QUOTE]

To circumvent the minimum wage of course. At least they're getting experience and a reference, which is still better than nothing.

And definitely we should provide generous social security, but my idea is that if social security is decent, then minimum wage is redundant, right?
 

Machjo

Hall of Fame Member
Oct 19, 2004
17,878
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The same way you identify a person who got lung cancer because they smoked as opposed to just getting lung cancer naturally. I don't think you will get very far with individualistic arguments. The argument against minimum wage is usually a sort of utilitarian argument on the grounds that society will be richer, where society is measured on cross section ignoring the standard deviation.



The difficulty with this argument is that it is short sighted. Are you even sure that minimum wage laws decrease unemployment? If we assume that wage follows a supply curve, then there are individuals willing to work for basically nothing. It is cheaper to higher these people for 70 hours a week than to hire one of these people for 35 hours a week and then a person who demands slightly more money for 35 hours a week.

Minimum wage can be seen to decrease unemployment therefore. Since with minimum wage legislation, it is much cheaper to hire 2 people at minimum wage for 35 hours a week, than one person for 70.

Now you're confusing minimum wage with working hours, which is covered in separate legislation. Minimum wage and maximum working hours are two separate things.

As for supply and demand, once everyone is employed, employers must then compete for them, thus pushing wages up to equilibrium. Also, once wages drop to the same rate as social assistance, it's natural many people would quit working and choose social assistance instead, and i that sense social assistance acts as a pressure valave of sorts.

Also, if the government provides skills training for those on social assistance, then they go back into the market in more demand and so can negotiate a higher wage. Add to this that with fewer people unemployed, it might even be affordable to increase social security by a little bit, which again pushes wages up.

Why not cut-out the middle man entirely and have the gvt mail an annual chaequ of $20k to every man, woman and child in the nation... No unemployment issues and no poverty - problem solved.

Many would quit their jobs. Maybe $12,000/annum? Even that would be a little high maybe. Also, do you really want to give money to an addict, whether a sex addict, drug addict or gambling addict, or would it be preferable to provide him with room and board directly?

Providing room and board would probably be preferable in that sense.
 

Niflmir

A modern nomad
Dec 18, 2006
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Leiden, the Netherlands
To circumvent the minimum wage of course. At least they're getting experience and a reference, which is still better than nothing.

And definitely we should provide generous social security, but my idea is that if social security is decent, then minimum wage is redundant, right?

You can view minimum wage as a sort of excise tax on businesses whose business model is based on exploiting the most desperate laborers. Since these businesses inelastically demand X hours of labor, then there is no social loss to this excise tax, and the people that should be paying the tax are paying the tax. As opposed to it burdening more honest people. There are also some nonlinear effects on the supply of labor curve that would make a lack of minimum wage disastrous over time.

Why not cut-out the middle man entirely and have the gvt mail an annual chaequ of $20k to every man, woman and child in the nation... No unemployment issues and no poverty - problem solved.

If the money supply is ever increasing (and it is) effectively this is already happening. So who is getting all the new money? Some prominent conservative economists have advocated for doing exactly that, together with tax reform however.
 

Goober

Hall of Fame Member
Jan 23, 2009
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The same way you identify a person who got lung cancer because they smoked as opposed to just getting lung cancer naturally. I don't think you will get very far with individualistic arguments. The argument against minimum wage is usually a sort of utilitarian argument on the grounds that society will be richer, where society is measured on cross section ignoring the standard deviation.

Now do not get me wrong - I am for min wage - I am for income supplements for the working poor- i am in favor of lowering the claw back level for CPP- I am in favor of raising the GST-

I am against gold plated pensions that the civil service at all levels have- i am against their holding Cities - provinces- Countries hostage as was the case on a number of occasions.

I am for people that can work- working - I am in favor of raising Social Security - But remember it like any program can be abused - that does not detract from the people that need it in my opinion - it detracts from the people that manage it.

When you have a substantial number of poor - the social costs are never included - from drugs- alcohol- dysfunctional families - poor health - and on and on.
 

Niflmir

A modern nomad
Dec 18, 2006
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Leiden, the Netherlands
Now you're confusing minimum wage with working hours, which is covered in separate legislation. Minimum wage and maximum working hours are two separate things.

As for supply and demand, once everyone is employed, employers must then compete for them, thus pushing wages up to equilibrium. Also, once wages drop to the same rate as social assistance, it's natural many people would quit working and choose social assistance instead, and i that sense social assistance acts as a pressure valave of sorts.

Also, if the government provides skills training for those on social assistance, then they go back into the market in more demand and so can negotiate a higher wage. Add to this that with fewer people unemployed, it might even be affordable to increase social security by a little bit, which again pushes wages up.



Many would quit their jobs. Maybe $12,000/annum? Even that would be a little high maybe. Also, do you really want to give money to an addict, whether a sex addict, drug addict or gambling addict, or would it be preferable to provide him with room and board directly?

Providing room and board would probably be preferable in that sense.

You can't stick your head in the sand about working hours in conversations about minimum wage. If you do away with minimum wage, overtime legislation means exactly nothing since laborers at the bottom of the labor supply curve will just negotiate their salary down to compensate and you will arrive at the 1 employee for 80 hours being cheaper than 2 for 40 hours situation I pointed out. What law is going to stop this situation from occurring if wages can always be negotiated down?

You can't avoid an inconvenient truth just because the government decided to put these issues in two separate pieces of legislation.
 

JLM

Hall of Fame Member
Nov 27, 2008
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Vernon, B.C.
Some here have accused me of not caring for the poor because of my opposition to minimum wage legislation, so I decided I'll turn the tables around with a question to those who support minimum wage legislation:

Do you support the government guaranteeing a full-time minimum wage to the unemployed, especially considering that some might be unemployed because of the minimum wage, especially among unskilled workers?

Now to some the following might seem contradictory even though to me the two are simply flip sides of the same coin, and that is that on the one hand I oppose minimum-wage legislation, and on the other I support guaranteeing the full-time established minimum-wage to the unemployed. In other words, if you insist on having a minimum wage, then ensure that those potentially affefcted are fairly compensated.

I'd like to know how many among you who support minimum wage legislation also support holding social security to the same standard as any employer?

NO - The Gov't should keep its nose RTF out of wages, minimum or otherwise except in cases where they are hiring directly. Wages have to be set in accordance with the skills & work ethic of the individual and at a level where they don't impact adversely on profits for the shareholders.
 

Machjo

Hall of Fame Member
Oct 19, 2004
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Ottawa, ON
Lone Wolf, I'm all for different rules for the disabled, giving them a more services according to circumstances. That's a whole separate issue.

You can't stick your head in the sand about working hours in conversations about minimum wage. If you do away with minimum wage, overtime legislation means exactly nothing since laborers at the bottom of the labor supply curve will just negotiate their salary down to compensate and you will arrive at the 1 employee for 80 hours being cheaper than 2 for 40 hours situation I pointed out. What law is going to stop this situation from occurring if wages can always be negotiated down?

You can't avoid an inconvenient truth just because the government decided to put these issues in two separate pieces of legislation.

I'm also for codetermination legislation as is available in Sweden and Germany. This would mean that workers would have a vote on the board of directors, meaning that they too could negotiate fair wages and work rules, the difference being that they could also negotiate their salaries downward in an economic downturn as they could negotiate them upward in better times. But that they they're more likely to save their jobs in a recession.

NO - The Gov't should keep its nose RTF out of wages, minimum or otherwise except in cases where they are hiring directly. Wages have to be set in accordance with the skills & work ethic of the individual and at a level where they don't impact adversely on profits for the shareholders.

I agree with that. But when the government does choose to legislate people out of work, are they not entitled to compensation?
 

Liberalman

Senate Member
Mar 18, 2007
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Toronto
There should be no minimum wage that the government forces on businesses, workers should form unions so they can get a better rate of pay and benefits.

In some provinces unions provide the workers for all businesses and if they don't want to pay they do not get the workers they need to operate their businesses. This should be the case accross Canada
 

Niflmir

A modern nomad
Dec 18, 2006
3,460
58
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Leiden, the Netherlands
I'm also for codetermination legislation as is available in Sweden and Germany. This would mean that workers would have a vote on the board of directors, meaning that they too could negotiate fair wages and work rules, the difference being that they could also negotiate their salaries downward in an economic downturn as they could negotiate them upward in better times. But that they they're more likely to save their jobs in a recession.

A single vote doesn't mean much, especially when all the employees can just be let go and replaced with cheaper employees.

Germany also has legislation that guarantees raises, and forces employers to give permanent contracts after a certain number of contract extensions. If you have had 3 contracts or have been working at the same place for more than 5 years, you basically cannot be fired.

Industry is not suffering there for minimum wage.

But you are dodging the point: a race to the bottom means that 1 person will be hired for a day over 2 persons at a slightly higher salary working for half a day each. What law is going to stop that from happening?

There should be no minimum wage that the government forces on businesses, workers should form unions so they can get a better rate of pay and benefits.

In some provinces unions provide the workers for all businesses and if they don't want to pay they do not get the workers they need to operate their businesses. This should be the case accross Canada

This doesn't work because the government interferes with the freedom of the union to strike. So long as the government has that power, they need to provide some regulations on businesses as well. If the government lost that power, the unions would coagulate, regulate a minimum wage for all employees, and effectively be the new government.

That's how anarchy works in practice anyways.
 

Machjo

Hall of Fame Member
Oct 19, 2004
17,878
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Ottawa, ON
Well then if you insist on a minimum wage, then seeing that it could potentially legislate a person out of work, it's reasonable to guarantee a full-time minimum wage to the unemployed too right?