Minimum Wage - Time For Reduction To Boost Economy?

[Free_Marketeer]

Hi,

Just wanted to get a debate going on this topic, as I think it's missing from the mainstream dialogue on Ireland's economy. It seems like a reduction in the minimum wage (along with next year's welfare cuts) could reduce costs and prices throughout the economy and have a knock-on effect that would encourage economy activity.

Given the high level of unemployment: how many jobs are made unviable because the employer can't pay less than €8.65 an hour, but can't create the job otherwise because it would be unprofitable? There is also the risk that employers will start laying off workers at minimum wage, that they would have been able to keep on if they could pay (say) €7.00 an hour.

Cut the minimum wage and jobs will be created that will go to the most vulnerable unemployed people in society, those suffering most in the current climate and in desperate need of work. Thoughts?

PS: I wrote a more developed post about this at my blog, Minimum Wage, Maximum Unemployment The Free Marketeer

[FutureTaoiseach]

I don't think so, but it should certainly be frozen. It isn't even enforced at present. Remember the Migrant Rights Centre report that 57% of migrants in the restaurant-sector were not even earning the minimum-wage. We have more dog-catchers than labour-inspectors in this country, yet we have thousands of tax-inspectors.

[factual]

Hi,

Just wanted to get a debate going on this topic, as I think it's missing from the mainstream dialogue on Ireland's economy. It seems like a reduction in the minimum wage (along with next year's welfare cuts) could reduce costs and prices throughout the economy and have a knock-on effect that would encourage economy activity.

Given the high level of unemployment: how many jobs are made unviable because the employer can't pay less than €8.65 an hour, but can't create the job otherwise because it would be unprofitable? There is also the risk that employers will start laying off workers at minimum wage, that they would have been able to keep on if they could pay (say) €7.00 an hour.

Cut the minimum wage and jobs will be created that will go to the most vulnerable unemployed people in society, those suffering most in the current climate and in desperate need of work. Thoughts?

PS: I wrote a more developed post about this at my blog, Minimum Wage, Maximum Unemployment The Free Marketeer

Definitely not - this would hurt the poorest.

[Cael]

Even the minimum wage at the momene is completely useless. What you should be asking is why dont we nationalise Ireland's land and provide free accomodation to all - like in Cuba.

[factual]

Even the minimum wage at the momene is completely useless. What you should be asking is why dont we nationalise Ireland's land and provide free accomodation to all - like in Cuba.

It would be too expensive to nationalise the land.

[Cael]

I don't think so, but it should certainly be frozen. It isn't even enforced at present. Remember the Migrant Rights Centre report that 57% of migrants in the restaurant-sector were not even earning the minimum-wage. We have more dog-catchers than labour-inspectors in this country, yet we have thousands of tax-inspectors.

Thats very true, I've met several people who are forced to work below the minimum wage by fat pigs.

[Cael]

It would be too expensive to nationalise the land.

Not if you take it by force.

[Clanrickard]

Even the minimum wage at the momene is completely useless. What you should be asking is why dont we nationalise Ireland's land and provide free accomodation to all - like in Cuba.

Yeah Cuba is a really great example that we need to emulate

[constitutionus]

this is the biggest non story of the whole recession.

only 4% of the work force are on the minimum wage to begin with so what reducing it will mean is beyond me.

the big problem business face is utitlites costs , local rates, and rents.

i reckon if you offered business the option of halving wages or the above they'd opt for the ol reliable bills big time

[Free_Marketeer]

Communists: I agree. Expense is the only thing that makes nationalisation of the land and free accommodation the most stupid, vapid thing I have ever heard in my life.

Future Taoiseach: Care to elaborate? Where exactly does my analysis fall, or what variables do you see that make it a bad idea overall?