(Original post by prog2djent)
These seem quite interesting
"Opponents of the minimum wage claim it has these effects:
As a labor market analogue of political-economic protectionism, it excludes low cost competitors from labor markets and hampers firms in reducing wage costs during trade downturns. This generates various industrial-economic inefficiencies.
Hurts small business more than large business.
Reduces quantity demanded of workers, either through a reduction in the number of hours worked by individuals, or through a reduction in the number of jobs.
May cause price inflation as businesses try to compensate by raising the prices of the goods being sold.
Benefits some workers at the expense of the poorest and least productive.
Can result in the exclusion of certain groups from the labor force.
Small firms with limited payroll budgets cannot offer their most valuable employees fair and attractive wages above unskilled workers paid the artificially high minimum, and see a rising hurdle-cost of adding workers.
Is less effective than other methods (e.g. the Earned Income Tax Credit) at reducing poverty, and is more damaging to businesses than those other methods.
Discourages further education among the poor by enticing people to enter the job market.
Discriminates against, through pricing out, less qualified workers (including newcomers to the labor market, e.g. young workers) by keeping them from accumulating work experience and qualifications, hence potentially graduating to higher wages later. (This may be a reason why trade unions press for minimum wages, i.e. to protect older workers on the job from the competition of younger, cheaper workers on the job market, for a given level of productivity."
What do you think about a negative income tax?