In response to:

Mandated Wages and Discrimination

BillK9 Wrote: Mar 06, 2013 5:15 AM
The schools produce illiterates that can't even fill out a job application and now enter the politicians stating that they deserve a "living wage"! Why? They can't read nor hardly write and math skills are practically non existent!
Mr. Right Wrote: Mar 06, 2013 7:28 AM
In other words, why do we have to pay a living wage to somebody who is too dumb to live?
m90 Wrote: Mar 06, 2013 7:42 AM
Define "living wage". The moment you establish one you create the new poverty level because the price of everything will increase to reflect the higher cost of labor.

Let's work through an example. Suppose 100 yards of fence could be built using one of two techniques. You could hire three low-skilled workers for $15 each, or you could hire one high-skilled worker for $40. Either way, you get the same 100 yards of fence built. If you sought maximum profits, which production technique would you employ? I'm guessing that you'd hire one high-skilled worker and pay him $40 rather than hire three low-skilled workers for $15 each. Your labor costs would be $40 rather than $45.

Suppose the high-skilled worker came into your office and demanded $55 a day....