I don't believe in some magic "market equillibrium mechanism" that always reaches some optimum and doesn't need intervention.
If people and especially employees, can screw other people, they will. Laws against slave and child labor, and women inequality in pay, are also some ways in which we introduced protections against those abubses. For some people those protections were "artificially defined" too (e.g "why take the children out of the labour pool and artificially inflate the value of adult labor").
>The same thing occurs when you artificially define minimum wages: home owners stop renting their properties because it does not make sense for them anymore.
The correlation doesn't make much sense. As long as there are people willing to rent their properties, they'd rent them. If anything, with people getting some guaranteed minimum wage, instead of being paid less, there even be more people that can afford to rent.
Or is the idea here that people would not be employed because of the strict miminum wage? In actual life I haven't seen that. It's more like employees are paying people less just because they can, than paying them less because they cannot afford to pay them more. Minimum wage at least puts a cap to that.
> The correlation doesn't make much sense. As long as there are people willing to rent their properties, they'd rent them. If anything, with people getting some guaranteed minimum wage, instead of being paid less, there even be more people that can afford to rent.
Wrong word used up there, it was not "wages" I was refering to, it was "rent prices".
If people and especially employees, can screw other people, they will. Laws against slave and child labor, and women inequality in pay, are also some ways in which we introduced protections against those abubses. For some people those protections were "artificially defined" too (e.g "why take the children out of the labour pool and artificially inflate the value of adult labor").
>The same thing occurs when you artificially define minimum wages: home owners stop renting their properties because it does not make sense for them anymore.
The correlation doesn't make much sense. As long as there are people willing to rent their properties, they'd rent them. If anything, with people getting some guaranteed minimum wage, instead of being paid less, there even be more people that can afford to rent.
Or is the idea here that people would not be employed because of the strict miminum wage? In actual life I haven't seen that. It's more like employees are paying people less just because they can, than paying them less because they cannot afford to pay them more. Minimum wage at least puts a cap to that.