A mandated minimum wage does more damage than good.

My opponent has to date been content to submit attempted counters to my points and has failed to bring any specific argument in support of the minimum wage. The closest thing thus far has been the all-too-familiar cry of a bleeding heart: "The minimum wage ensures that those who work are paid enough that they are able to maintain a decent standard of living" [1]. These are the same people who want you to conjure up images of Ebenezer Scrooge when asked to think of Capitalists. However, the only question one needs to ask is whether or not we live in a free society? Suppose Con works as a laborer creating toy airplanes for children. He works in a small shop using only hand tools and does the entire labor process by himself. On a good day he can build four complete airplanes. Down the block, Pro also works as a laborer creating similar toy airplanes for children. However, Pro has the assistance of machines. These airplanes are created from die-cut metal frames which are spot welded in place for a superior structure. He can turn out 40 high-quality planes a day. Both employees work the same number of hours a day arguably doing the same job. Are they both entitled to the same pay? If they both receive a minimum wage of $7.25 an hour, Con's employer must charge ten times the amount charged by his competitor simply to cover the cost of labor. If consumer's choice has any ability to determine wages, Con should be compensated less than a dollar an hour for his trouble. In an economy of open competition it is patently obvious that a person should be free to choose among the various available employment opportunities. In this case, Con would tell his employer where to stick it and find a more suitable job elsewhere; possibly down the street with Pro. The point being that every person has the right to choose. The employee has the right to ask for a higher wage while the employer has the right to deny that wage in the hopes that another individual is willing to do the work at that price. The employee can simply move to a company willing to compensate him at the level he deems adequate. Conversely, the employer has the right to offer a rate as low as he desires while the employee has the right to decline working for that rate. If the employer is unable to find someone willing to work at that wage he is forced to raise the rate until he finds suitable laborers or he goes out of business. If freedom of choice is to be respected, then the only fair wage is one determined by the purely voluntary process of competitive bargaining in a free market. We can bemoan the unfortunate circumstance of the individual who is barely able to support a family in a simple shop such as the one Con worked in. But if we suggest that he receive a higher wage than that which can be sustained by the price consumers will voluntarily pay is to reject the ideals of competitive private enterprise. It is a rejection of freedom and an endorsement of Marxian philosophy. In sum: ----------------------------------------- 1) Minimum wages hurt employers. ----------------------------------------- Profit must be used for higher costs of labor rather than towards business expansion and advances. ----------------------------------------- 2) Minimum wages hurt employees. ----------------------------------------- Those willing to work for less than the arbitrarily established minimum remain unemployed or must work in the black market. ----------------------------------------- 3) Minimum wages hurt customers. ----------------------------------------- Customers must pay higher prices due to the increased costs of doing business. ----------------------------------------- 4) Minimum wages hurt society. ----------------------------------------- Potential product improvements are delayed, unemployed workers must be supported by the employed, and increased prices reduce discretionary spending and investment. ----------------------------------------- References: ----------------------------------------- [1] Con, Round 2