TheHeretic -> RE: Minimum wage in america (12/8/2013 2:02:40 PM)
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quote:
ORIGINAL: PeonForHer quote:
ORIGINAL: TheHeretic When you restrict the legitimate economy, say by requiring wages out of line with the work performed, you force people into the underground economy. Just a reality. How does that work, TH? On the face of it it doesn't make sense. You're not saying that people will choose an underground occupation rather than a legal one if that legal one has a minimum wage, are you? Why would they do that? No, Peon, I'm not. Say I want somebody else to rake up the dogshit in my yard. Let's say it is worth $10 bucks a week to me, to have that done, and I contract with someone to do it. All nice and legal. Now, the regulators come along and tell the guy I contract with, that he has to pay double the wage to his employees. The price increase shows up in my bill, and I decide that for $20 a week, I'll rake it up myself. So the dogshit raker dude, who was earning a minimum wage that was considered too low, now has no job at all. The thing is, there is still a market for dogshit to be raked at $10 a week. A clever dogshit raker is going to be taking his business off the books.
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