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383 points imartin2k | 1 comments | | HN request time: 0s | source
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cousin_it ◴[] No.14330454[source]
I don't understand the libertarian argument for allowing low wages. Let's say company X is paying low wages, which allows it to sell goods for cheap. If company Y tries to enter the market and pay higher wages, they won't get any market share, because their goods will be more expensive. So wages will stay low forever. Am I missing something?
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jstanley ◴[] No.14330505[source]
If company Y is producing the same quality of goods as company X but trying to charge more money, they deserve to be out-competed by company X. Do you agree?

Equally, if employee Y is producing the same quality of work as employee X but trying to charge more money, does employee Y not deserve to be out-competed by employee X?

Employment is a two-sided market too.

Nobody would advocate for a minimum price for a packet of crisps just to save the poor crisp companies from earning too little per packet. It is obvious that if crisps were too expensive, people would stop buying them. The same applies for workers.

Minimum wage is just saying "if you can't produce at least $X of value per hour, you're not allowed to work at all". That's not fair.

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1. gtvwill ◴[] No.14330606[source]
Not sure what country your from but here is Aussie we have many price floors in place for basic goods. Phone and internet being one of those goods.

Price floors on many products are considered here in order to maintain certain industries. Not to mention import taxes which also set price floors in a way.