Are minimmum wage laws a bad thing? The following assertion is an opinion that I have often heard expressed.
I know increasing the minimum wage is not good in general as it discourages employers to hire new employees and it also encourages automation, it's also absurd, 10.75 and hour for i.e. (sic) Putting fries in a cup, but hey I'm not complaining.
I offer the following as a way of giving some context to the question. Consider the Walmart company, which for the 2016 year of operations had a revenue of 485.87 billion dollars with a net income of 13.64 billion dollars. Walmart loves low wages. That company also knows that its employees have a difficult time making ends meet. So what they do is encourage their employees to make use of all the government assistance programs for which they are eligible. According to an article by Clare O'Connor published at Forbes in 2014, on a year by year basis:
Walmart's low-wage workers cost U.S. taxpayers an estimated $6.2 billion in public assistance including food stamps, Medicaid and subsidized housing...
Moreover it is also the case that the company has a history of wage theft. Journalist Paddy Ryan stating that Walmart has been subject to:
claims by workers who point to the most common forms of wage theft: the refusal to pay proper overtime, the refusal to honor the minimum wage, and illegal paycheck deductions.
All of this concerning a company which enjoys profits measured in the billions. What if less than half of those profits were paid out to employees who made those profits possible? The public at large subsidize Walmart and companies like them so that the owners of those corporations can enjoy wealth undreamt of in the unchecked dreams of avarice
. There is much to admire about the people who run America's great corporations. This does not change the fact that they can behave like pond scum.
Edited 7/27/2017 20:24:02