Green MP Sue Bradford’s private member’s Bill aimed at raising the minimum wage to $12 per hour(Abolition of Age Discrimination Bill) has been drawn in the ballot.
Grace Millar, secretary of the Unite union which is also campaigning to raise the minimum wage says Unite welcomes Sue Bradford’s work to end youth rates through a private members Bill.
What do these people hope to achieve with this idiocy? If raising the minimum wage helps anybody at all, or increases real wealth, why not raise it to $100 or $1,000 per hour? Why stop even there?
Its simple economics. Labour is subject to the law of supply and demand like any product or service. If you raise the price of something, people consume less of it.
If you lower the price people will consume more.
Once, second hand BMW’s were expensive and rare. Now because of Japanese imports they are cheap and common. Porsches are still expensive and still rare. If you halved the price tomorrow, you’d see a lot more of them
If you artificially raise the price of labour, people (employers) will buy less of it. If you raise the price at the bottom end, employers will simply employ no bottom end labour, replace it with machinery or spend their limited funds on higher end skilled labour.
If you are poorly skilled, young and lacking experience, disabled or lacking language skills, you need the opportunity to get skills and training. You are worth comparativelyly little to an employer as he is going to find it very hard to make a profit on your labour. Therefore if he has to pay you more than you’re worth to him, you stay on the scrapheap. Minimum wages keep marginal workers from gaining that first toehold on the ladder to greater skills and higher earnings.
Imagine if the government set a minimum price for tomatoes-say $3 per Kg. Does that mean everybody would pay $3 for crappy substandard tomatoes. No they would only buy good high quality tomatoes worth more than $3, or they would by carrots or courgettes instead. Blemished tomatoes would be fed to pigs instead of going into low income family’s shopping baskets.
If there was a minimum price on houses, say $150,000, what would happen to the lower end houses worth less than that. Everybody who owned a low quality home would never sell it and could never afford to buy anything better.
That’s how it is with minimum wages. They force low end workers right out of the market. As with every socialist measure it harms those most, who it is designed to help. Sue Bradford, Unite and the CTU should be ashamed of themselves for their out and out cruelty