Tuesday, December 27, 2011

Tim Worstall: Minimum Wage Proven To Be Too High

Youth unemployment proves it.  The argument about minimum wages sadly usually consists of two groups of people entirely talking past each other. On the one, wrong, side those who insist that any minimum wage at all is going to mean immediate mass unemployment. On the other, wrong again, side, those who insist that a minimum wage has no effect on   ... MORE

1 comment:

  1. I would like to comment about the minimum. Please those of you that do not believe in a minimum wage do not spread misinformation about it. Did you know that in states where their minimum wage laws mirror the federal minimum wage laws you can hire and pay anyone under the age of twenty 4.25 hour for the first ninety days that they are employed. Let me repeat that Did you know that in states where their minimum wage laws mirror the federal minimum wage laws you can pay anyone under the age of twenty 4.25 hour for their first ninety days that they are employed. Well now you know ok. Did you know that most states make exceptions for very small companies that have sales below 1 million dollars a year. These companies are not even required to pay the minimum wage. This would most likly be over half of all small businesses in other words over half of all the small businesses in the country are exempt from paying the minimum wage. Well now you know. I would suggest a simple solution to the minimum wage issue. Instead of requiring a company to pay the starting minimum wage of 7.25 hour allow them to phase it in by simply starting a employee out at 6.00 hour 5.75 for anyone under eighteen and than increasing their pay by 25 cents a month until it reaches 7.25 hour. It will take five months to reach 7.25 hour. By doing this it will give the employer a little bit of time before they are required to pay the full amount. In other words while the employee is learning the job and is not yet as productive as the more experienced employees they can be pay a lower rate of pay for up to five months. I would also make exceptions for seasonal workers that are employed only for 60 days or less they can be paid 6 dollars an hour for up to sixty days. 5.75 hour if their under eighteen. I believe that this is a very reasonable compromise between the employee and employer. One other thing their is overwhelming public support for the minimum wage. Illinois had a referendum on increasing the minimum wage on the ballot over 85% of the voters supported increasing the minimum wage.

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