Should minimum wage be variable?

[DC Al Fine]

2. I really don't think a suburban high school kid flipping burgers should be making $15.00/hour.  But an inner city father who does not have reliable transportation to a more affluent city, in an area where the economy has been poor for a long time and jobs are sparse?  I can justify that.

I sympathise with this idea, but I think it would lead to is fast food places discriminating against the people the legislation would be intended to help. Wage subsidies are a better way to go about this.

[DC Al Fine]

Why should employers bear the burden alone?

Because, generally speaking, "employers" are the people who reap the most benefits from modern economy, and asking them to give something back makes perfect sense if you're concerned about common good.

Then tax them in other ways that don't discourage them from hiring people as the minimum wage does.  Economically, that's all the minimum wage is, a tax linked to a welfare benefit.  Of course, it has the advantage (from a politician's POV) of not showing up on the budget.

So you're perfectly okay with Wal-Mart helping its employees fill out food stamp, HUD and Medicaid applications to supplement the inadequate wages they are being paid?

Yup.  I'm not against there being a social safety net.  I just think that the minimum wage is not a particularly good net.

Do you see the problem here?

1. Local government gives Wal-Mart enormous tax abatement and/or incentive package to locate in their jurisdiction.
2. Wal-Mart opens. People working there make minimum wage.
3. Wal-Mart workers cannot pay for housing, food or healthcare with these wages and require public assistance.
4. Government must provide public assistance.
5. Since Wal-Mart got major tax break, Wal-Mart is not contributing much to this public assistance. Instead, that burden falls on small businesses and on individual citizens.

Devil's advocate: Wouldn't the people at Wal-Mart either be working a minimum wage job or not working at all if Wal-Mart wasn't there? Wouldn't it make Wal-Mart moving there a positive improvement?