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I recently read a zero hedge article talking about economic problems in puerto rico and the u.s. territories being caused by minimum wage laws. Is this an honest assessment? Considering the source and all…

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Posted by laskerfan12
Posted on 01/07/2017 7:21 PM
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I say that minimum wage laws should ban employers from offering below the minimum wage, but should not ban employees from asking for a salary below the minimum wage.

I.e. Mcdonalds cannot say “you are going to work for me, and I will pay you 5 dollars an hour”. But I can say “Please hire me, I am willing to work for 5 dollars an hour”.

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Posted by FUЯ ION
Answered on 01/08/2017 10:17 AM
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    I’m no expert on PR economics, but it strikes me as plausible. You’ve got an island nation with third world status in essence that is adhering to first world wage rates. That just doesn’t work. If you have a link I can explore the topic a bit more….

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    Cullen Roche Posted by Cullen Roche
    Answered on 01/08/2017 2:17 PM
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      Minimum wage proponents will never explain why such laws ban both the employer and the employee from setting wage rates. They CAN explain it. But they will not.

      If you want to ban an employer from exploiting workers, fine.

      But if you ban workers from offering their services for a lower rate, then sinister ulterior motives must be assumed.

      Offering one’s services on the cheap is not the same as signing up for slavery, especially if there is no contract involved. Min Wage laws are saying to a low skilled worker “you are not allowed to sell your labour, which is all that you have to sell, for a price below that prescribed by the government”.

      Hmm.. I want to help poor people. Poor people sometimes want to set up mom and pop stores. These people deserve a living income! I will propose a law which prohibits all mom and pop stores (see page 245 for definition of mom and pop) from selling their wares at below 15 bucks a piece.

      Who would propose such a law? Well intentioned but foolish politicians? Or established businesses intent on crushing mom and pop?

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      Posted by FUЯ ION
      Answered on 01/09/2017 11:42 AM
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        LUH, you wrote, “I say that minimum wage laws should ban employers from offering below the minimum wage, but should not ban employees from asking for a salary below the minimum wage.” Do you not see how employers will turn that around on an employee? You really do not see the huge potential for coercion?

        Your long comment is not the way it works. The mom-and-pop store analogy does not apply. I think you knew that because you set it up as a strawman.

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        Posted by Lucas
        Answered on 01/13/2017 6:00 PM
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          > Who would propose such a law? Well intentioned but foolish politicians? Or established businesses intent
          > on crushing mom and pop?

          Nothing so nefarious. It is liberal Progressives limp-wristedly concerned about “poverty”, “inequality”, “justice”, “living wage”, and/or “colored people” who overwhelmingly bear the brunt of earning minimum wages at said proscribed levels. It’s also much more politically palatable than raising taxes because it is just a wealth transfer payment from end consumers via inflation. The real joke, I think, is slowly increasing it over time so that inflation erodes the real value up until the nominal target is met — if inflation expectations don’t first go higher beforehand as result of passing such higher minimum wage laws.

          Wages aren’t everything. An educated workforce and easily available infrastructure play larger roles than cost of labor. But in situations such as bankrupt Puerto Rico, fast food joints or cashier chekers in grocery stores with razor thin margins, robots cost only $3-$4 an hour equivalent. No one is worth $12-$15 working in jobs like that so they’ll simply be eliminated soon.

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          Posted by MachineGhost
          Answered on 01/13/2017 6:38 PM
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