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I spent two weeks delivering for Uber Eats and made $4.40 per hour

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383 points imartin2k | 6 comments | 13 May 17 10:08 UTC | HN request time: 0.978s | source | bottom
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cousin_it ◴[13 May 17 11:42 UTC] 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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1. danblick ◴[13 May 17 13:23 UTC] No.14330818[source]▶
Doesn't your argument basically assume the first company will always be able to hire workers? If wages are so bad, workers would seek other options, like developing a skill or taking a job in a different industry.

http://blog.skepticallibertarian.com/2013/02/25/remedial-eco...

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2. frgtpsswrdlame ◴[13 May 17 13:54 UTC] No.14330974[source]▶
...Does this guy actually know any economics? He's pretty much just googling and copy-pasting without any real understanding. Here's a better article

The employment effect of the minimum wage is one of the most studied topics in all of economics. This report examines the most recent wave of this research – roughly since 2000 – to determine the best current estimates of the impact of increases in the minimum wage on the employment prospects of low-wage workers. The weight of that evidence points to little or no employment response to modest increases in the minimum wage.

http://cepr.net/documents/publications/min-wage-2013-02.pdf

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3. danblick ◴[13 May 17 14:17 UTC] No.14331088[source]▶
"But, probably the most important channel of adjustment is through reductions in labor turnover, which yield significant cost savings to employers."

If this is the case, you'd think employers would have an incentive to raise wages on their own without requiring a law.

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4. aianus ◴[13 May 17 14:22 UTC] No.14331120{3}[source]▶
Some do, like Costco paying cashiers well over minimum wage to improve service and turnover.
5. adultSwim ◴[13 May 17 15:18 UTC] No.14331392[source]▶
1.5 million American families, including 3m children, live on less than $2/person/day. Half the world lives on less than $2/day (in our buying power). This isn't by choice.
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6. danblick ◴[13 May 17 16:06 UTC] No.14331612[source]▶
I agree that's something we should be concerned about. I don't think minimum wage laws address that issue though.

If you want to help improve standards of living around the world, reduce immigration restrictions so that people can move from countries with few economic opportunities to other countries where there are more opportunities.

Personally I agree with most of what Bryan Caplan has written on the topic.

https://vimeo.com/15000835