Labor Markets and Minimum Wage: Crash Course Economics #28
video description
Date: 2022-04-04
Related videos
Comments and reviews: 10
Alexander
I agree with the premise that employers systematically might try to underpay employees. Granted. But what I don't get is how to determine what the valid wage -floor- is. Like, $7. 25 might just happen to be the fair amount for a pretzel making job. But if it is the ideal wage for that, then is it the ideal wage for someone sweeping floors? I am doubtful. So if the minimum wage could hypothetically operate based on -fair- prices based on different industries, I would support it, but as a one-size-fits-all approach, it kills more than it heals.
And it is not possible (yet, at least, to have a per-industry or per-service/product minimum wage. Bureaucracies would not have access to all the information necessary to make these decisions in any acceptably efficient manner, even if they overcame corrupt practices. The Soviets tried central planning, and it failed also because they could not compute what was needed where efficiently enough. As it turns out, this is what markets do best, they transmit price signals. Now, I'm no purist on Austrian school economics, (although I'm no fan of -Keynesian Trash- XD) but I do believe they were correct about these sorts of programs not being practical, even in rare cases where they may be hypothetically possible.
As to the utilitarian argument of a minimum wage increasing wages for some at expense of others' jobs - no. That's just wrong. Voluntarism should always be the default position, even if there are compelling reasons to abandon it sometimes. And just because that might help those families a small amount, it destroys the livelihood of those who are put out of work. In an ideal world, where everyone had sufficient skills and intellect for a job to be guaranteed somewhere, this argument would have merit. But our world has people with a tough start in life, and effectively forcing people on welfare is not a good solution, because of both the economic and spiritual downsides which come from a life of dependence, even if it is only perceived dependence.
No hate.
reply
I agree with the premise that employers systematically might try to underpay employees. Granted. But what I don't get is how to determine what the valid wage -floor- is. Like, $7. 25 might just happen to be the fair amount for a pretzel making job. But if it is the ideal wage for that, then is it the ideal wage for someone sweeping floors? I am doubtful. So if the minimum wage could hypothetically operate based on -fair- prices based on different industries, I would support it, but as a one-size-fits-all approach, it kills more than it heals.
And it is not possible (yet, at least, to have a per-industry or per-service/product minimum wage. Bureaucracies would not have access to all the information necessary to make these decisions in any acceptably efficient manner, even if they overcame corrupt practices. The Soviets tried central planning, and it failed also because they could not compute what was needed where efficiently enough. As it turns out, this is what markets do best, they transmit price signals. Now, I'm no purist on Austrian school economics, (although I'm no fan of -Keynesian Trash- XD) but I do believe they were correct about these sorts of programs not being practical, even in rare cases where they may be hypothetically possible.
As to the utilitarian argument of a minimum wage increasing wages for some at expense of others' jobs - no. That's just wrong. Voluntarism should always be the default position, even if there are compelling reasons to abandon it sometimes. And just because that might help those families a small amount, it destroys the livelihood of those who are put out of work. In an ideal world, where everyone had sufficient skills and intellect for a job to be guaranteed somewhere, this argument would have merit. But our world has people with a tough start in life, and effectively forcing people on welfare is not a good solution, because of both the economic and spiritual downsides which come from a life of dependence, even if it is only perceived dependence.
No hate.
reply
Anything
Watching the pretzel shop portion I already see a flaw. Was a gig economy worker for 5 years for Uber Lyft instacart Amazon. I can tell you that there are people who get in Desperate situations by the hundreds of thousands that are willing to work for next to nothing just to get money and that's where these companies take advantage of them by driving the wages lower because they are independent contractors and not be bound by the laws of wages. In some cities that are not economically prospering and are smaller the Uber Market is really bad and drivers make as little as $3 an hour so there's your damn supply and demand Theory out the window for treating people right. I was on the right side of politics for 30 plus years until I became a gig worker and had to see what it was like to be taken advantage of by supply and demand and to feel the coldness of the judgemental people on the right that told me I didn't deserve any more. Now I'm in the middle of politics but on the left side of wages
reply
Watching the pretzel shop portion I already see a flaw. Was a gig economy worker for 5 years for Uber Lyft instacart Amazon. I can tell you that there are people who get in Desperate situations by the hundreds of thousands that are willing to work for next to nothing just to get money and that's where these companies take advantage of them by driving the wages lower because they are independent contractors and not be bound by the laws of wages. In some cities that are not economically prospering and are smaller the Uber Market is really bad and drivers make as little as $3 an hour so there's your damn supply and demand Theory out the window for treating people right. I was on the right side of politics for 30 plus years until I became a gig worker and had to see what it was like to be taken advantage of by supply and demand and to feel the coldness of the judgemental people on the right that told me I didn't deserve any more. Now I'm in the middle of politics but on the left side of wages
reply
BonzoDog67
Economics. The ultimate science of -Some says it is, some says it isn't. -
CEOs are paid obscene wages and are given golden parachutes even when they screw-up and are fired.
A federal minimum wage increase is necessary because it doesn't let profitable companies hop to a cheaper state.
What has really exacerbated things is illegal immigration and offshoring. That is a testament to just how greedy companies have become in exploiting cheap labor both foreign and domestic. That's why Tariffs are so sweet. Jack them high enough and it becomes cheaper -- if the company in question wants to sell in the US -- to make the product IN the US and avoid the Tariffs.
reply
Economics. The ultimate science of -Some says it is, some says it isn't. -
CEOs are paid obscene wages and are given golden parachutes even when they screw-up and are fired.
A federal minimum wage increase is necessary because it doesn't let profitable companies hop to a cheaper state.
What has really exacerbated things is illegal immigration and offshoring. That is a testament to just how greedy companies have become in exploiting cheap labor both foreign and domestic. That's why Tariffs are so sweet. Jack them high enough and it becomes cheaper -- if the company in question wants to sell in the US -- to make the product IN the US and avoid the Tariffs.
reply
---
How about doing it like the military? Low base pay in salary with a rank system for bumps in pay and responsibilities, and a housing allowance pegged to local cost of living (single/married with kids rates. For example, if average rent is $3, 000 for 1 bedroom [single, no kids] in vancouver, store clerk gets monthly base pay of $1, 500 plus housing allowance of $3, 000. If small businesses cant afford, they can pool together under the local chamber of commerce. Likewise, person B has 2 kids and lives in Moose Crossing where average rent is $500 for a 2 bedroom. He would get monthly $1, 500 plus $500.
reply
How about doing it like the military? Low base pay in salary with a rank system for bumps in pay and responsibilities, and a housing allowance pegged to local cost of living (single/married with kids rates. For example, if average rent is $3, 000 for 1 bedroom [single, no kids] in vancouver, store clerk gets monthly base pay of $1, 500 plus housing allowance of $3, 000. If small businesses cant afford, they can pool together under the local chamber of commerce. Likewise, person B has 2 kids and lives in Moose Crossing where average rent is $500 for a 2 bedroom. He would get monthly $1, 500 plus $500.
reply
Josh-Engy
When I was out of college looking for a job in engineering, I worked at a small computer repair business for $9/hr for a while. There were three people who worked there, and they hired me to take some of the load off. If the minimum wage were much higher than that, I think they would've just sucked it up and worked harder.
I'm not saying this is a super common situation, just that these situations definitely exist.
reply
When I was out of college looking for a job in engineering, I worked at a small computer repair business for $9/hr for a while. There were three people who worked there, and they hired me to take some of the load off. If the minimum wage were much higher than that, I think they would've just sucked it up and worked harder.
I'm not saying this is a super common situation, just that these situations definitely exist.
reply
Harvest
It would be nice if we could have a living wage instead of a minimum wage. Some people can-t go to college or move to anywhere with more job opportunities. These people live in small towns and survive by working at whatever chain businesses are available and then they still have to live off the government because those businesses don-t want to pay more than minimum wage and they know they are the only options.
reply
It would be nice if we could have a living wage instead of a minimum wage. Some people can-t go to college or move to anywhere with more job opportunities. These people live in small towns and survive by working at whatever chain businesses are available and then they still have to live off the government because those businesses don-t want to pay more than minimum wage and they know they are the only options.
reply
Ricky
What if instead of shareholders the government could buy limited stock from companies? Will it incentivize companies to bring down prices more bc there is not as many shareholders looking for massive profits? And it can help spread wealth and create new opportunities for people?
reply
What if instead of shareholders the government could buy limited stock from companies? Will it incentivize companies to bring down prices more bc there is not as many shareholders looking for massive profits? And it can help spread wealth and create new opportunities for people?
reply
shriramvenu
minimum wage is essential in rich advanced economies to counteract the impact of migration of the poor to those nations. Without the minimum wage, the floor price of unskilled work would continue to fall, while the rich pocket the additional profit of exploiting the poor.
reply
minimum wage is essential in rich advanced economies to counteract the impact of migration of the poor to those nations. Without the minimum wage, the floor price of unskilled work would continue to fall, while the rich pocket the additional profit of exploiting the poor.
reply
Amici
Businesses that can only survive by paying below a living wage do not have the right to exist, simple as that. The entrepreneurs and business owners will need to focus their efforts creating jobs that do economically justify a living wage instead.
reply
Businesses that can only survive by paying below a living wage do not have the right to exist, simple as that. The entrepreneurs and business owners will need to focus their efforts creating jobs that do economically justify a living wage instead.
reply
Samet
Great content, ai will reduce low skilled or semiskilled labour force needings. Every aspect of our economy understanding and estimates have to change in order to catch up with the pace of the current world
reply
Great content, ai will reduce low skilled or semiskilled labour force needings. Every aspect of our economy understanding and estimates have to change in order to catch up with the pace of the current world
reply
Add a review, comment
Other channel videos
