Quote:
Originally Posted by DGthe3
But what causes people to need a higher minimum wage? Claiming it causes inflation seems backwards to me. Things become more expensive, so people need to be paid more in order to meet their needs. Sure, after that it becomes somewhat cyclical, for the reasons you said. But the first link in the chain isn't increased wages for the people at the bottom.
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People do not "need" a higher minimum wage. They want higher wages for numerous reasons, and with an active minimum wage law they obviously attain these increases in pay. That is what starts the cycle, the wants and not the need.
http://www.lowpay.gov.uk/lowpay/repo...i-Min_Wage.pdf
The UK's introduction of a national minimum wage law has frankly had the inverse effects it intended. Employers did not hire as many employees, reduced their current employee's hours, increased prices of their goods, and have forced their current employees to be more productive.