My post yesterday generated some pushback from someone who I respect very much; when he disagrees with me, it causes me to think I am wrong. So, let me try to clarify something:
I am not arguing that everyone, everywhere is always getting paid their exact MPL wage. I suspect there are many folks who are not. But minimum wage is not a solution to this problem. Here’s why:
Minimum wage is a one-size-fits-all solution. Consideration to the particulars of any given employment situation are not considered. If a person is earning $6/hr, but his MPL is $8/hr, a minimum wage of $8 would likely benefit him. But, if a person is earning $6/hr and his MPL is $6/hr, a minimum wage of $8 would harm him. This fellow would be more likely to face negative consequences of minimum wage: hour cuts, loss of job, etc.
Minimum wage is bad, among other reasons, because the negative consequences are most likely to fall on those who can lease afford them.