- Joined
- Feb 4, 2020
Imagine thinking that what makes a good limit on the minimum wage is just an arbitrary percentage of the median wage. The idea that such a heated topic of discussion in economics - the study of human interaction - can be summarised so easily is just fucking dumb. Like as if all these highly intelligent economists never noticed it was such a simple relationship to understand the issue!!!
The low pay commission in the UK basically reviews the best data globally to come to a recommendation on how to raise minimum wages.
Their recommendations amount to this:
You should raise minimum wage rates, but do so slowly. This is because whilst for the most part minimum wages don't have a noticeble negative effect on unemployment, there is a "biting point" wherein if you go above, it will begin to have more drastic effects on employment. Additionally, even if there is some negative effects from the rise prior to this "biting point" they are largely outweighed by the benefits of there being less in-work poverty.
There is no magic formula, it's test and adjust. Raising the wage is generally better, as it has a beneficial effects on those poor fucks stuck at the bottom. Equally, the lolberts who think it should be acceptable to pay people 20¢ an hour because it's an agreement are out of their fucking minds.
As for people moving for a higher minimum wage - oh sure, I'll move somewhere with a higher cost of living to take advantage of the higher minimum wage. Except it won't work, because the increased cost of living will negate any benefit.
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