Unless everyone lowers their wages to match that. Some countries have persisted at very low salary levels for a long time, after all. Although I largely agree with you in principle--let capitalism do its work--I accept a minimum wage as a necessary thing.
Ok. I don't.
It's a complete government intrusion into a free economy, and hurts those at the bottom of the pay scale the most. It pushes people out of the labor market, raises prices, and causes low end wage compression. It's not good for the poor, it
destroys them.
If everyone paid a dollar a day, then everyone's income would be lowered to that level, and companies would have to lower their prices in a commensurate fashion in order to continue to operate. Those businesses that didn't do so would go out of business.
It's an unsupportable position. You can't think of money in nominal value. You have to think of money in it's comparative value as it relates to the local economy. If people are making a hundred pennies, or a hundred dollars a day, the local economy will have to compensate in order to function.
Minimum wage is government intrusion. Every time it goes up, people lose jobs and prices increase. In one business I worked for, when the minimum wage went up, the cost of the food went up and the size of the portions went down. Now, not only did the same amount of money buy you fewer portions the portions were also smaller. That's what minimum wage causes.
You can argue that business are evil, or that they don't
have to raise their prices, but facts are facts. Business exists to make a profit. If the government cuts into their profit margin in some way, they will adjust their business model to compensate. That means fewer entry level positions, higher prices, and reduced product quality.
Let the free market set wages just like it should set the prices for every other commodity. Market forces will cause prices to stabalize over time.
But of course, you can't examine these things in a vacuum. Our current economic system, including the minimum wage, is deeply and tragically influenced by fiat currency and government interference in the free market in an inumerable number of ways.
Minimum wage laws are destructive. And worse, they hurt most the very people they purport to protect. And worst, those people are often too uneducated to understand what they are voting for every time they vote to increase the minimum wage.
-Rob