Economics: Minimum Wage, Who Gets Hurt?

[Speaker to Animals]

Creating more value than cost is the entire point of any economic system.

[nmoore63]

I would add that minimum wage certainly decreases Moore Furniture's total employment.

Minimum wage here is $12/hr

Certain task don't generate that much value. Its doesn't matter the quality of the employee.

If hiring someone to do X can only generate $10 in value, then the task will simply not be done if the cheapest it can legally be done is $12, then it goes undone.

[heydaralon]

Creating more value than cost is the entire point of any economic system.

No. It is to create value that can be seized by the government to help immigrants get housing and smartphones. Wrong again. You should read some Piketty.

[PartyOf5]

Only a fool would argue for workers to receive 100% of the value that they produce. But what do you suppose is the marginal value of labor right now?

Hint: it ain’t 100%.

Ok, what is it and how did you calculate it?

[PartyOf5]

I would never hire someone if they couldn't create more value than they cost.

+1. I try and create more value than what I'm being paid. That increases my chances of getting a bigger raise or a promotion. It also creates better job security.

[The Conservative]

IT one of those jobs that the less you work the more you are worth. For the less that breaks under your watch means people can keep making money.

[SuburbanFarmer]

Only a fool would argue for workers to receive 100% of the value that they produce. But what do you suppose is the marginal value of labor right now?

Hint: it ain’t 100%.

Ok, what is it and how did you calculate it?

I don't see it tracked/charted anywhere, but it's defined as

the change in output (Y) per unit change in labor (L). In discrete terms the marginal product of labor is:

Δ Y Δ L . {\displaystyle {\frac {\Delta Y}{\Delta L}}.} {\frac {\Delta Y}{\Delta L}}.

https://en.wikipedia.org/wiki/Marginal_product_of_labor

My guess for the overall US economy is something around 10-20 in the service/low-end market, and .05 or so in the executive class.

My overall point is that there are bounds on both ends, despite all of the absolutist ideology on display. You simply cannot exploit the workforce completely, nor can you cater to them beyond reason. Currently, we're at the far end of the exploitation spectrum.

This is not to say that I want government re-distribution en masse, but I don't see another way to manage the situation. Some of the outlier solutions are attractive, but would never get passed in current state (enforced profit-sharing, executive compensation caps, etc)

[Hastur]

Creating more value than cost is the entire point of any economic system.

Have you forgotten that the basis for SubhumanFarmer's worldview is that the amount of wealth is constant and that value can't be added to something by labor? It's all a zero-sum game about exploiters and exploited. Kindergarten marxism.

[PartyOf5]

IT one of those jobs that the less you work the more you are worth. For the less that breaks under your watch means people can keep making money.

Only if you suck at it.

[PartyOf5]

I don't see it tracked/charted anywhere,

Currently, we're at the far end of the exploitation spectrum.