We approached a liveable minimum wage 111 years ago and it works for us.
What I think is not noticed here is that our $18 AUD an hour minimum wage is about $13 USD. It was set in 1907 to provide a minimum lifestyle for a family of 5 at the standards prevailing then. So no TV, internet, take away food, white goods, designer clothes, phones and so on. In actual fact such a family, here now with one wage at that level, would be receiving various governmental supports as well. Few people are on that wage, few stay on that wage, however some do and should not be despised as we need people to do these jobs.
The two things that tend to gripe me are- That some here obviously despise those on low wage jobs, not nice people, as not everyone is a rocket scientist, not their fault. Plus the US assumption that people can be paid about $7 an hour and beg for tips to survive. Australians are notoriously poor tippers as we see it as demeaning to the recipient.
Michael Everett wrote:Although it's rather larger than normal, Venezuela has decreed a large jump in minimum wage (approx 3,500%! WTF!) but legally banned the industries from passing on the increased costs.
At least 30% of stores in Venezuela have either closed due to wage-induced-bankruptcy or are being forced to close, putting lots of people out of work and severely increasing the number of people dependent on the (virtually broke) government.
Independent Youtube reporter Tim Poole commented on it here.
Minimum wage is somewhat akin to the bottom-most rung of the career ladder and raising it makes it harder for people to get on as the employers will insist on far higher standards for the potential employees, thus effectively locking out a portion of the population. In addition, raising the minimum wage means that companies have to find some way to pay, meaning that they will raise prices to compensate, making it even more expensive to live and increasing the burden on the state.
I'm not saying that minimum wages are a bad thing, but they are something that should be approached with a great deal of caution. The surface may be simple, but the underlying complexities are rarely understood until far too late.