That's not actually what minimum wage is, though. FDR stated when he pushed for the federal minimum wage at the end of the great depression, that the minimum wage should provide a living wage.My thought is a minimum wage is a wage you pay high school kids at their first job. If I had to pay 15-20$ an hour to a 17 year old kid sweeping metal chips of the floor or sorting the mail, then he would never ever get hired, and he would never work his way up. The economist Thomas Sowell said the true minimum wage is zero.
Sowell's viewpoint on it isn't wrong. Having a federally mandated minimum wage in fact hurt the income prospects of low wage workers. The recent pay rise for unskilled jobs in an effort to draw in new employees despite an unchanging minimum wage is an example of the market at work.
Workers are supposed to compete against other workers (not employers) to find jobs and get the highest wages. Employers compete against other employers to find the best workers.
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