RE: In case anyone loses sight of what these republican cocksuckers want
February 8, 2012 at 4:26 pm
(February 8, 2012 at 1:20 pm)Doubting Thomas Wrote:(February 8, 2012 at 10:24 am)Justtristo Wrote: However if the minimum wage were to be abolished, there should be a guaranteed minimum income so that these workers have enough to live on.
I thought that's what the minimum wage is?
No. Minimum wage requires the business to pay a certain amount. Tax credits are paid by the government.
A similar (but more interesting imo) system is the concept of "Negative Income Tax"
(February 8, 2012 at 4:15 pm)Kbrandon1 Wrote: How exactly are you increasing demand? Abolishing the minimum wage would not cause a business to hire more people. More demand for a good/service causes a business to hire more people. If you abolish the minimum wage, people would make less and therefore be unable to increase their consumption which would in turn lower demand.
You are increasing the demand of the worker. At the moment there are numerous low-paid jobs which have a minimum wage, and so companies only hire a certain amount of people. If you lower the wage, you can hire more people for the same amount of money. There is more demand for workers who will do the job for less...always. Companies will always prefer to hire 5 people at $1 an hour than 1 person at $5 an hour, simply because it's more profitable for them (5x the work for the same cost).
How you make this fair in the system is by using tax credits, or something like the Negative Income Tax which ensures that everyone gets a certain amount of money to live on and increases employment.
