I believe we must have an understanding first about the nature
of minimum wage, and what the impact would be.
The basic thing about minimum wage is this.....
Minimum wage is an externally imposed control, onto the labour
market.
Minimum wage is government regulation.
It is not supply and demand.
It is a floor.
So what happens when that is applied ?
If that is applied, the ones below the floor would get cut
off.
There are some other negative effects from it.
But basically, the most noticable effect is that it would
actually promote unemployment.
So those youths working in 7-11 shops, those part-time cleaners,
and so on........
They would get cut.
It benefits no one.
A floor or a ceiling ALWAYS introduces distortions and
inefficiencies.
The way to improve people's living standards is by improving
business opportunities, improving infrastcuture, education,
workforce skills, condusive taxation rule......these are
helpful.......if any price floor is imposed.....what good would it
bring ? It is superficial and it wont work.
As to the nature about foreigners / foreign labours depressing
wages.....
Well then..the answer is not really by applying minimum wage,
but by having less incoming foreign labour supply. What does it
have to do with minimum wage? This is like putting the cart before
the horse.
But this foreign labour thing is another, more complex, issue. I
believe there are some politics and strategic issues involved.
But in any case, minimum wage is suicidal and is harmful to
society.
Why must cost of wages be left to supply and demand ? Why not
let EVERYTHING in the market be left to supply and demand ? Abolish
all authorities that regulate businesses and let the free hand work
the market if you want a 100% free market. Lets get rid of big
government in Singapore.....You know this ain't gonna work. Without
some form of regulation, the free market will exploit
EVERYTHING.
Do you know the history of union ? Why in the old days, people
see the need to form unions ? Study the history please.
Students and part-timers getting cut? Obviously you don't know
how minimum wage works. Get your ignorant ass out of Singapore and
see how other countries are doing it.
"improving business opportunities, improving infrastcuture,
education, workforce skills, condusive taxation rule." -
FAIL. All these do not contribute to increasing
wages. It only gives business owners a more condusive
business environment. Does it equate to
better salaries ? NO.
Immigration reform you say, this one yes, it affects demand
supply. Now we have an overflow of foreign supply, so the price of
wages goes down. Basic Econs. But do we want to stop immigration ?
No. As much as I hate to admit, we do need them, but only good
quality ones, and the ones we really need.
We can welcome immigrants with open arms, but let them compete
fairly, base on QUALITY instead of Lowest Cost.
Right now, foreigners has an unfair advantage over the locals,
so the best solution is minimum wage.
You can't have an open immigration policy that is driving up
cost of living and yet not control the wage depression.
