What the hell. At max I am going to waste half an hour in my life trying to explain why your reasoning is wrong and even if you dont get what I am saying, if someone else gets it, I think it "might" have been worth my time
Both the vedieo put up by
@Mad Indian to argue that unemployment is the result of minimum wages is simply false. One Job is one job and if it is cheaper it does not become two jobs.
Eh, nope. thats not how labour market works. For instance, I own a Fast food stall and the average wage we pay is from 8000Rs. to 12000 Rupees, depending on the value of the worker/productivity of the worker. if tomorrow, govt mandates that I pay 20k per worker. Then I would just have to close shop and all the workers in my restaurant would lose the low paying jobs they have now. This is how real world job market works
The higher percentage of teenage unemployment is related to number of jobs available rather than cost of the job.The answer to their unemployment is to increase production / services and create more jobs rather then reduce the cost of the job.
Again, the no. of jobs available also depends on the wages one has to pay for those jobs. For instance, if the job market is such that I will get workers for 6000Rs. instead of the 12000 workers, then i might even hire three workers in place of two . The fast food stall could use some extra help and training and reserves, if I can afford to keep it that way. Wages directly influence how job hirers behave(considering I am one)
In the classical case of demand and supply like in India, we have higher numbers of trained engineers than the market demands and hence minimum salary a trained engineers is offered is pittance some times less than a well trained mechanic who are lesser in supply. Has that created more jobs for engineers?? No.
Actually yes, the no. of engineers being higher in number do increase the job opportunities for them indriectly , since now their wage is lower due to competition. I am a co-owner of a software start up along with my cousin. We have four people working for us, and we could pay them only 5000 Rs. per month. But they gain experience for their work and we learn as well. That is the only amount we could spare for them as of now, since right now, we are only establishing and have to put money from our pocket to run it. So if the govt comes along and fixes some 10k as the min wage - again, i would have to close up shop and you wont have those four jobs anymore.
Also, people who do work for us for 6-8 months do get better paying jobs and may move on to some other bigger firms with the exp they gained from us. And eventually that what we are tryin to achieve - give enough wage to make them stick with us, if they are good. But for now, we can afford it and so any tinkering with minimum wage will kill our firm . this is also the case for all the industries in the world
On the contrary, engineers jobs have been reduced in the market due to oversupply and no significant contribution.
What you are talking about here will happen even if there is minimum wage. If there are too many people to work the same job - then the price for the job will come down. There is nothing special here. But if you try to artificially keep it up by means of min wage - then even the one or two jobs which might otherwise be available for smaller pay will disappear too. This is the practical ground reality
If teenagers are more unemployed it is not solely due to their aspirations to earn minimum wages but due to lack of job opportunities at higher / skilled levels at a wage which they think they should get. If there are no jobs for higher skills why should any one acquire higher skills? The employers get better skilled labor due to compition from immigrants who are employed at lower wages .. laws or no laws.
What you have said has no relevance to the topic at hand.
Unemployment is not directly related to wages but inability of the society to create more jobs.
And artifical minimum wages is one of the many things which affect the ability of the society to create jobs
In creating new jobs wages is but a small factor and not the sole factor.
LOL. Labor costs typical accounts for 30% of all the costs in medium and small scale industries. That is not a small factor by any scale. I am guessing you have no experience in running anything related to business.
For creating new jobs, supply of money or inceasesing purchasing power is also necessary or why should any one produce !!
Supply of money will only increase inflation in absence of higher productivity. This is what I explained in my very first post.
Sometimes the Capital is given in loan to sustain that production like in the case of USA providing loans or grants to Pakistan to sustain their Arms industry. Or earlier USA supplying wheat to India to sustain their farmers.
And that is a bad way of doing business and running an economy. this is why socialist economies eventually fail - like USSR and the EU boil down recently. Govt cant subsidise a failing industry without taxing a profitable one. That is, you are in essence encouraging destruction of profitable industry by propping up a useless industry.
If one is a pricipled free market advocate like @ Mad Indian half of the world industry will close down. If GoI does not provide free ash to cement manufactures in Kota, half of the cement production in India will not be there.
Wow. Just wow. the Typical scaremongering BS commies use when talking about free market
But, back here in the real world, evidence says other wise. All the socialist countries have gone bankrupt or forced to change their ways under the threat of bankruptcy to follow free market. And the present data also proves that economic success of a nation depends on how free the market is. But you can live in your lala land. No problem for anyone
So should the industry only be the free loaders ?
Exactly. Why should free loading commies be given care of industry? If anything only productive members of the economy deserve to get paid and not free loaders who want govt to pay the bill for them
ime.