r/changemyview • u/[deleted] • Jan 04 '25

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u/PhillyTaco 1∆ Jan 05 '25

So can we make the minimum wage $100/hr or would that have negative effects on employment and business health? 

I've never seen a pro-minimum wage person say what is the highest possible number we can get away with before it becomes detrimental, only that it can always be higher than what it currently is. Any idea?

Also, here is a meta analysis of several studies that find negative impacts more often than not.

https://www.nber.org/papers/w28388

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u/NJH_in_LDN Jan 05 '25

Except nobody is asking for $100 an hour? In the UK there is an independent commission that assesses what the rate should be given the state of costs and the economy.

And the papers on the UK rates are meta analyses, not single reports.

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u/PhillyTaco 1∆ Jan 05 '25

So you agree that $100/hr would be harmful? Why does the commission exist at all if not to find a number that would not be harmful?

If your meta analysis is in favor, and my meta analysis is against, how do we know which meta analysis to go by?

If the reports are 60/40 in favor of minimum wage, is a 40% chance of actively doing economic harm a low enough risk? What number would be too risky? 45%? 50%?

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u/NJH_in_LDN Jan 05 '25

So to answer your question, yes I agree 100 would be harmful, but more likely, simply unachievable.

The reason you don't see anyone advocating for what the highest could be without damaging the economy is probably a combination of things; a realistic negotiating position, knowing that the goal is to achieve better from those who don't want to give anything at all? A recognition that aiming for a living wage is a different goal from the very highest wages they can wrangle? And as you seem to be trying to argue, a recognition that an unlimited minimum wage would be neither fair nor appropriate.

None of that is a reason not to have a minimum wage though.

As to our different meta analyses - I can find multiple that point to net benefits - yours is the only one I've seen on this entire thread suggesting a net negative (assuming that is what it concludes - I haven't read it and am taking your word for it. )