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Minimum wage is a price floor. It increases the price of untrained labor, but it lowers the demand increasing unemployment. It also increases the supply, which means that there will be more competition from people who don't really need the job. It makes it difficult for people with less experience to get jobs, leaving them permanently unemployed. If you want to help the poor, just give them the money. This decreases incentives to get rich, so give everyone else money too. It's not really a big deal to give money to the people you're taking it from. And you don't have to give them enough to live off of. Just to make sure that, in addition to what they can earn, it's enough.

Unfortunately, an unconditional basic income isn't politically feasible. Not in the US at least. The choices are minimum wage and no minimum wage. I suppose I can try to change welfare a bit, but I don't think it will be sufficient. I don't know if minimum wage would be worth it. It's possible it would decrease the average income if you count the unemployed as getting zero. You'd have to know the elasticity of demand for untrained labor.






If you want to help the poor, just give them the money.


In the future, robots might make low-skill workers (and at some point even high-skill workers) redundant and this idea could become more feasible. For now, though, welfare system creates a demoralized underclass. Also, giving poor people money without any strings attached creates a long-term demographic problem. Due to differences in fertility rates, the ratio of welfare receivers to tax-paying population will increase at the exponential rate.
69%
melian
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No minimum wage with all of the low earnes on public support is de facto really close to basic income. People have a base part that is not dependant on the place of employmjent and another part that is somewhat dependant on place of employment.
55%
Fwiffo
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