Labor Markets and Minimum Wage: Crash Course Economics #28
Economy | Information | History | Online | Facts | World | Global | Money
How much should you get paid for your job? Well, that depends on a lot of factors. Your skill set, the demand for the skills you have, and what other people are getting paid around you all factor in. In a lot of ways, labor markets work on supply and demand, just like many of the markets we talk about in Crash Course Econ. But, again, there aren't a lot of pure, true markets in the world. There are all kinds of oddities and regulations that change the way labor markets work. One common (and kind of controversial one) is the minimum wage. The minimum wage has potential upsides and downsides, and we'll take a look at the various arguments for an against it. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Comments
-
Awesome video, great labor market background for a ten minute video
-
I think a minimum wage wasn't put in place to be a living wage, but rather to prevent employers from exploiting people. Also I think that having unions decide the minimum wage via collective bargaining is a more free market answer
-
Socialists!
-
if they want to keep this stystem as is they should stop complaining about crime and terrorism. because social inequality of a perfect feeding ground for these things!
-
This is why we need the US government replaced with a set of internet algorithms to figure out where to set the minimum wage. We could even vote on the algorithms we liked the most online then use the winner as the actual one we implement. No such thing as a filibuster on a server rack.
-
7:55
Broken window fallacy. -
A rise in minimum wage does increase unemployment and it also pays you a certain wage not based on skill, but just based on entitlement. I have yet to see any companies exploit their workers, because many companies pay way over the line of minimum wages. It is a proven fact that companies search for those based on skill, and based on what you can provide will determine your income. This is a voluntary agreement between the employer and the possible employee. As you said in the video, some companies may be able to monopolize an entire area and based on that they will be able to coerce their workers into thinking that they are the only line of work they have to offer in their area, and they can pay them an extremely low wage to maximize profits. Under a free market, this cannot be done, competition is a factor that corrects this issue. Market Competitive Exclusion ensures that those who have the highest demand for their product stay at the top and those who have the lowest stay at the bottom, if the product sold has a fair price and good quality, people are most likely going to recognize that, and through consumption they will display that the majority of the people agree that the current leading company is at the top for a good reason. Another point to understand is that labor competition is a factor too. If people find that they are going to get paid higher elsewhere for a service, then it will increase the likelyhood that the competing business will raise their wages. Competition is the self-correcting mechanism of the free market, and is underestimated by many.
-
There was very little discussion of how wages and demand are strongly linked. Running parrallel to that is savings and debt. When wages are low, demand falls unless indebtedness rises. In the US wages have stagnated for 30 years, but debt has risen to counteract it. Now we have a huge debt problem and almost negative interest rates.
-
Ideally, unions would replace day labor shops and temp agencies. I'd be able to call the labor hall and have a dozen qualified welders show up to weld my equipment for the short term I need them.
-
My boy Stevie G made it into Crash Course Econ! #YNWA
-
This video missed the effect of raising the minimum wages can raise inflation. The employers are forced to raise the cost of goods and service to cover the operating cost and profit margin. Businesses are not philanthropist that give away monies. Their purpose is to make money.
-
Of course the Chicago School would be against higher minimum wages
-
minimum wage should be looked at a county level.
-
4:13- "There are some situations where wages may actually be higher than market equilibrium. For example, some employers might voluntarily offer higher than normal wages to increase worker productivity and retention".
Wouldn't that just be a case of market equilibrium wages increasing, rather than wages being "higher" than equilibrium? After all, if the employers voluntarily choose to increase wages, that would just represent an increase in the demand for that kind of labour and, hence, a higher equilibrium market wage. -
What this video fails to bring up is that as labor costs go up so do the costs of goods. The market equalizes very quickly. Once the minimum wage goes way up then everyones wage goes up and so does the cost of everything meaning inflation also goes up. People who want to make more money need to find a serviceable skill. Minimum wage is not meant to be used on a long term scale
-
Many people dont realize that Scandinavian countries have the happiest people on earth yet they have NO MINIMUM WAGE. I have always thought that the concept of minimum wage is not the best. There has to be better options that benefit workers and companies and thus the economy.
At the moment I like the Scandinavian model more. The government doesnt dictate minimum wage yet they encourage workers to band together and collectively bargain with employers. I think this is a win-win solution. Small businesses can grow by paying low wages and employing unskilled workers while big businesses are forced to pay decent wages by their banded together skilled workers.
But then again setting NO MINIMUM WAGE policy is difficult in countries where many among the population are lowly educated. The only thing they know is that the higher the minimum wage the better. -
how about automation? why are not scientist addressing this ?
-
peoplee from the US must be confused about the soccer thing. lol
-
Minimum wage should be relatively scaled to the revenue capability of a business. It's not difficult. It's how they tax.
-
love this.. no propaganda economics. Everyone should study econ
10m 38sLenght
4138Rating