John Stossel on Why the Minimum Wage is Bad for Workers

Check out this two minute video for some keen insights on the unintended consequences of refusing to allow supply and demand to set the minimum wage.



3 responses to this post.

  1. minimum wage has mainly affected my bottom line. I have to have a certain # of workers per shift. I can’t fire anyone, It probably won’t affect me opening any other stores, but maybe. I’ll see at the end of the year. It did make me raise my prices, contributing to inflation. I probably would have raised them at some point anyway, but this was 100% the catilyst to do it earlier and justify it. Now, all my college kids have more beer money, and if I’m ONLY paying minimum, they’ll go somewhere and get paid more, so I have to stay competitive and pay more than minimum. (which is 7.25, stossel said it was 7.5- maybe where he’s at.


  2. Government floors aren’t the worst thing in the world. If you don’t have them, would america look like china and sweat shops? I don’t know. It’s hard to tell what’s been politicised and what’s reality. supply and demand worked for us. I never could pay 5.75 for a worker when that was the min. wage. I just think the excessive tax is the MOST ridiculous thing. (which is what min. wage is a part of.)


  3. Posted by ThatLiberal on September 4, 2009 at 12:51 pm

    Doubtless, there is some truth to Stossel’s point about a nominal reduction of actual positions, but in my thinking, that doesn’t matter. Demanding that we eliminate the minimum wage is demanding the right to exploit workers, whenever we want. Is there some great difference between a government imposed minimum wage and government imposed safety regulations, child labor laws, and regulations on allowed number of hours worked? It’s interesting, because I understand that Communism/Marxist Socialism will not work because people are naturally evil. How is it that advocates of laissez faire do not realize that it is flawed for exactly the same reasons? You act as if someone’s conscience would prevent them from exploiting workers with almost no pay, horrible and dangerous work conditions, child labor, and 100 hour work weeks. You act like that when we know from history that decent work conditions are the exception, not the rule for industry giants.

    Minimum wage is not an exercise in economic efficiency. It is a means of protecting those who would be exploited by the rich and the powerful. I’m sorry that you have to raise your prices to pay your workers well, (This is addressed not to ‘sc’, but to a more abstract, middle class, small business owner) but perhaps you could lower your profit margin instead. I’m not talking about cutting back so you won’t be able to expand and offer more employment, I’m talking about selling the boat (or not buying it), buying a smaller/older house, driving your car for a little longer or letting your kids go to public school. I understand the value of those things in “trickle down economics’, but I think that actually paying your employees a wage with which they can afford health insurance (since you are outraged that they may get it through a socialized system) is better than your outrageous buying habits helping another corporate mogu (and maybe some fast food worker way down the line).

    I’m talking about caring for and protecting the poor, not economics.


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