Minimum Wage And The Wage

916 Words Aug 11th, 2014 4 Pages
Eliminate the Minimum Wage
Darity Has described minimum wage as: “Minimum-wage legislation has been to improve the terms of employment of the least-fortunate wage earners.” (Darity) Since the beginning of minimum wage laws in 1270 France the intentions of minimum wage legislation has been good. The idea is that a worker is worth a certain amount regardless of the work they are able to do. One can see how this could create inefficiencies in an economy. The law was meant to help poor families. Later in Britain, the father of economics, Adam Smith wrote his book called the wealth of nations. These basic economic principles can show the inefficiency of the minimum wage. If an employer is forced to pay more for labor, then in turn they must charge more for their product, or they must reduce the amount of on the job training.
Neumark and Wascher interjected: “Minimum wages were originally proposed [in the United States] as a means to combat the proliferation of so-called sweatshops in manufacturing industries.”(Neumark) child labor laws control the creation of sweatshops. Minimum wage Laws tend to force employers to pay more for labor that they perceive as less valuable. Sweatshop implies a place where workers are paid very little money to do a dangerous or hard job. Many labor laws make this kind of setup inefficient for the employer. Investing in one’s employees and their safety is more efficient and avoids costly injuries.
One can most easily visualize the…

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