Employers are not stupid. Many do see the value of higher paid workers and appreciate their harder work and dedication. That is exactly why a minimum wage is unnecessary; firms in pursuit of their own self-interest will pay workers competitive wages. Furthermore, social welfare payments will not decrease with the advent of a minimum wage since while some workers will not require income supplements from the state, the higher numbers of unemployed workers will look to the state exclusively as their source of income, raising the cost to the state and the taxpayer.