<p>Typically, what happens when a minimum wage is relaxed is that a plethora of jobs that were illegal under the previous doctrine become available on the market for workers.</p>

<p>The common metaphor used by its supporters for describing the minimum wage is that a minimum wage is a "price floor" under which wages are not permitted to fall, ostensibly to protect workers.</p>

<p>The accurate metaphor for describing the minimum wage is a <strong>price hurdle</strong> which each person's productivity must clear in order to sell your product (i.e. your labor)  If your productivity is not valued by a buyer at a higher rate than the strictures placed upon it by legislation, it is illegal for you to have that job.</p>

<p>All other things held equal, reducing the minimum wage will create options for suppliers of cheap labor to actually have their product clear the market rather than having it denied by the State.</p>

CC BY-SA 3.0
2016-04-19T12:42:43.730Z
can you explain how not having a minimum wage could be in workers best interest?
john mangual
CC BY-SA 3.0
2016-04-19T14:01:45.830Z
@johnmangual ...easily
K. Alan Bates
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2016-04-19T14:15:39.993Z
what exactly is a supplier of cheap labor?  is a child prostitute a good example?
john mangual
CC BY-SA 3.0
2016-04-19T14:16:27.193Z
@johnmangual no. That would be a crime.
K. Alan Bates
CC BY-SA 3.0
2016-04-19T14:17:08.650Z
@johnmangual A basic description of "supplier of cheap labor" is anyone who is marketing raw time to the market.
K. Alan Bates
CC BY-SA 3.0
2016-04-19T14:17:24.680Z
ok fine... but sweat shops should be OK then?
john mangual
CC BY-SA 3.0
2016-04-19T14:19:12.520Z
@johnmangual in "developing" economic structures, sweat shops are a step in evolutionary economic progress.  The only reason workers are willing to accept sweatshop conditions is that those conditions are better than their second best alternatives.  In Western economic development, droves of workers emigrated to urban centers for those so-called "sweatshops" because they provided better opportunities than the agrarian alternatives.
K. Alan Bates
CC BY-SA 3.0
2016-04-18T19:09:08.790Z
2016-04-18T19:09:08.790Z
K. Alan Bates
<p>I am reading about a new bill to lower the minimum wage in <a href="https://www.washingtonpost.com/opinions/puerto-ricos-lesson-for-the-mainland/2015/07/08/24e63970-25ad-11e5-b77f-eb13a215f593_story.html" rel="nofollow">Puerto Rico</a> from \$7.25 to \$4.25 per hour.  This comes at a time, when both the <a href="http://www.huffingtonpost.com/entry/new-york-minimum-wage_us_56fde776e4b0daf53aef5731" rel="nofollow">New York</a> and <a href="http://www.sacbee.com/news/politics-government/capitol-alert/article69842317.html" rel="nofollow">California</a> have chosen to raise their minimum wages from \$9/hr to \$15/hr. </p>

<p>Are there any theories of how this affects work in a population?</p>

<p>Have any economists chimed in on the topic of minimum wage in general in general?  Can any of it be used to predict what will happen to PR?</p>

<hr>

<p><strong>Why might policy makers feel a decrease is warranted in one situation while an increase is warranted in another?</strong></p>

CC BY-SA 3.0
2016-04-18T16:43:28.157Z
Possible duplicate of [What is the economic purpose of increasing the minimum wage?](http://economics.stackexchange.com/questions/429/what-is-the-economic-purpose-of-increasing-the-minimum-wage)
FooBar
CC BY-SA 3.0
2016-04-18T16:44:57.960Z
Please use the search function before posting. I've selected one question that already answers this, but the search function will immediately show you  (at least) 5 questions related to the theoretical and actual impact of minimum wages: http://economics.stackexchange.com/search?q=minimum+wages
FooBar
CC BY-SA 3.0
2016-04-18T16:53:21.643Z
@FooBar I am asking about **decreasing** the minimum wage
john mangual
CC BY-SA 3.0
2016-04-18T19:36:50.657Z
That doesn't matter. There's no reason to assume the relationship is not symmetric.
FooBar
CC BY-SA 3.0
2016-04-18T19:55:32.203Z
@FooBar You are right the *theory* of minimum wage is quite clear, but there definitely is **asymmetry** here.   I don't know why policy moved in one direction for NY and CA and in another direction for PR.  All of these are within the United States.
john mangual
CC BY-SA 3.0
2016-04-18T20:27:55.010Z
Sure, if you ask "Why did PR policy makers decrease the minimum wage" you'll have a different (and unique) question.
FooBar
CC BY-SA 3.0
2016-04-18T22:20:38.917Z
@FooBar As the OP to the question you linked, I can testify that this is not a duplicate of that question. My question asked for reasons why people (esp. politicians) would want to increase the minimum wage; this question asks how the decrease in minimum wage will affect the workforce. Now, it could be a duplicate of another question, but it is definitely not a duplicate of mine.
Mathematician
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2016-04-19T07:36:18.653Z
@Mathematician Verbatim from the current version of this question: "Why might policy makers feel a decrease is warranted in one situation while an increase is warranted in another?".
FooBar
<labor-economics><minimum-wage>
lowering minimum wage by half, effect on population of Puerto Rico
john mangual
# lowering minimum wage by half, effect on population of Puerto Rico

(Asked by: username_0 on 2016-04-18)

I am reading about a new bill to lower the minimum wage in [Puerto Rico](https://www.washingtonpost.com/opinions/puerto-ricos-lesson-for-the-mainland/2015/07/08/24e63970-25ad-11e5-b77f-eb13a215f593_story.html) from \$7.25 to \$4.25 per hour. This comes at a time, when both the [New York](http://www.huffingtonpost.com/entry/new-york-minimum-wage_us_56fde776e4b0daf53aef5731) and [California](http://www.sacbee.com/news/politics-government/capitol-alert/article69842317.html) have chosen to raise their minimum wages from \$9/hr to \$15/hr.

Are there any theories of how this affects work in a population?

Have any economists chimed in on the topic of minimum wage in general in general? Can any of it be used to predict what will happen to PR?

---

**Why might policy makers feel a decrease is warranted in one situation while an increase is warranted in another?**

**Tags:** labor-economics, minimum-wage
> **Comments:**
> **username_1**: Possible duplicate of [What is the economic purpose of increasing the minimum wage?](http://economics.stackexchange.com/questions/429/what-is-the-economic-purpose-of-increasing-the-minimum-wage)  
> **username_1**: Please use the search function before posting. I've selected one question that already answers this, but the search function will immediately show you  (at least) 5 questions related to the theoretical and actual impact of minimum wages: http://economics.stackexchange.com/search?q=minimum+wages  
> **username_0**: @FooBar I am asking about **decreasing** the minimum wage  
> **username_1**: That doesn't matter. There's no reason to assume the relationship is not symmetric.  
> **username_0**: @FooBar You are right the *theory* of minimum wage is quite clear, but there definitely is **asymmetry** here.   I don't know why policy moved in one direction for NY and CA and in another direction for PR.  All of these are within the United States.  
> **username_1**: Sure, if you ask "Why did PR policy makers decrease the minimum wage" you'll have a different (and unique) question.  
> **username_2**: @FooBar As the OP to the question you linked, I can testify that this is not a duplicate of that question. My question asked for reasons why people (esp. politicians) would want to increase the minimum wage; this question asks how the decrease in minimum wage will affect the workforce. Now, it could be a duplicate of another question, but it is definitely not a duplicate of mine.  
> **username_1**: @Mathematician Verbatim from the current version of this question: "Why might policy makers feel a decrease is warranted in one situation while an increase is warranted in another?".  

---

## 1 answers

### Answer by username_3 on 2016-04-18. Score: 1

Typically, what happens when a minimum wage is relaxed is that a plethora of jobs that were illegal under the previous doctrine become available on the market for workers.

The common metaphor used by its supporters for describing the minimum wage is that a minimum wage is a "price floor" under which wages are not permitted to fall, ostensibly to protect workers.

The accurate metaphor for describing the minimum wage is a **price hurdle** which each person's productivity must clear in order to sell your product (i.e. your labor) If your productivity is not valued by a buyer at a higher rate than the strictures placed upon it by legislation, it is illegal for you to have that job.

All other things held equal, reducing the minimum wage will create options for suppliers of cheap labor to actually have their product clear the market rather than having it denied by the State.

> **Comments:**
> **username_0**: can you explain how not having a minimum wage could be in workers best interest?  
> **username_3**: @johnmangual ...easily  
> **username_0**: what exactly is a supplier of cheap labor?  is a child prostitute a good example?  
> **username_3**: @johnmangual no. That would be a crime.  
> **username_3**: @johnmangual A basic description of "supplier of cheap labor" is anyone who is marketing raw time to the market.  
> **username_0**: ok fine... but sweat shops should be OK then?  
> **username_3**: @johnmangual in "developing" economic structures, sweat shops are a step in evolutionary economic progress.  The only reason workers are willing to accept sweatshop conditions is that those conditions are better than their second best alternatives.  In Western economic development, droves of workers emigrated to urban centers for those so-called "sweatshops" because they provided better opportunities than the agrarian alternatives.  

---

