Would A Higher Minimum Wage Help McDonald’s Workers? – Forbes

It’s tempting to think that the higher wages for workers is worth it, but it isn’t. The minimum wage shifts the margins on which people compete with one another from wages to wasteful competitive endeavors like waiting or investing in too many quality signals. Competition in a price-controlled market can erode the entire value of the difference between the minimum workers are willing to accept and the minimum they are allowed to accept. The cruel irony is that a policy designed to pick the pockets of employers for the benefit of workers ultimately leaves everyone worse off.

via Would A Higher Minimum Wage Help McDonald’s Workers? – Forbes.

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2 thoughts on “Would A Higher Minimum Wage Help McDonald’s Workers? – Forbes

  1. It ends up hurting the workers who already earn $15 an hour. They will no longer be able to afford to eat at McDonalds. It may sound cruel, but some low lovel employees shouldn’t even be paid $7.50 an hour. With the economy the way it is, I bet some would willingly take any job, even for $4 an hour. Really don’t understand why we have a minimum or living wages…..

  2. Minimum wage prices people with low skills out of the workplace and onto government aid.
    Without a minimum wage workers would take lower paying jobs, gain experience and learn new skills. Many low wage workers would loose their job if minimum wage was raised.

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