Evaluate this statement about minimum wage?

Question

"Without a minimum-wage law, the low skilled and members of minority groups would find it difficult to earn a decent living."

Answer 1

It's a true statement.

There has to be a government set minimum wage.  What if there wasn't?

Could I then pay people $2.69 per hour to wash dishes at my restaurant?

Or $3.88 per hour to clean rooms at my hotel?

Answer 2

I'm not sure what you mean about "analyze" but yes the statement is true.

Without a minimum wage an employer could pay whatever amount he wanted.  A person who is highly skilled and education can shop around for the best offer, but someone with few skills and no education has to put up with whatever he can get which is often low paid.

Even now, with a minimum wage law companies still try to cut corners. They offer part time work with no benefits or security.

If they could pay less, they would do it in a heartbeat.

This is why so many companies move overseas, so they can get cheaper labour in third world countries that don't have laws to protect its citizens.

Answer 3

It makes little sense.  People making the min. wage would get paid less than what they make know if they are earning min wage.  But, the unemployed would get paid more because they would have jobs.

This is just the theory I learned...take it for what it is.   Min. wage might actually be OK..just depends on how look at it.  I don't like it, but I understand the arguments for it, and they are legit.