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Originally Posted by YOWetal
This is typical entrepreuner bro theory but actual evidence suggests it's mostly untrue. It does make it a little harder for low skilled and young people to get employment. But it's marginal.
You expect maximum output from every employee so I hope you don't tell a minimum wage worker they need to increase output by 25%. So you think you can cut 25% of your worse employees and produce the same output because they got a wage increase from minimum wage hike? They will leave and go work one of the many jobs requiring no effort. A small clothing store for example.
Sure minimum wage does cause some distortions but I'd rather see low skilled people who actually work get more money rather than taxing business and giving it to them as welfare or disability. And granted we are doing both right now for sure.
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I'm not talking about you or your peers. I'm talking about the addicts, those with low intelligence, or some sort of disability. These people would never get hired for an "easy" minimum wage job at a clothing store (typically filled by young attractive female students).
That "marginal" portion of the population is now living in tents across Vancouver, Toronto, Hamilton, etc. These people are effectively priced out of the labour market. Their work is not valuable enough to justify paying them minimum wage even.
And how do low skill workers or young workers improve their skills? By starting at the bottom and gradually getting better. But if we make it impossible for them to even get into a bottom level job, what's going to happen to their skill level over time? It'll never improve and many of them will be unemployable for the bulk of their adult life.
Don't shoot the messenger, I'm just telling you how busineses work. For me to hire you I need to be able to make a profit from your work. And making a sizeable subset of people unemployable is a terrible solution.