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The supply of cheap labour gets diminished by companies competing for employees thereby raising the wage.

Abolishing the minimum wage does not mean, that suddenly all former minimum-wagers have to work for free.



That's true, but some people really have very little to offer to the market. Too little to support themselves economically. That's the sad truth. And unrelated to that, minimum wages are a tax on dumb work. I like that.


I guess we agree that one should make sure everyone has enough income to live. Something like basic income (or so) might do a better job than a minimum wage.


I totally agree. Basic income is a hugely better idea than minimum wage, but politically very difficult to push through.


I often hear basic income heralded as a sweeping reform. Perhaps one should try to position basic income as relatively small step to contain bureaucracy: All means of state welfare (and we have a lot of them in e.g. Germany) will be combined into one; and as the state already knows how much money you make for tax purposes, it just re-uses that knowledge to determine your basic income allowance.


But isn't the problem exactly that only a sweeping reform - i.e. basic income replacing all the other benefit schemes - will actually lead to the kind of reduction in red tape that makes the system pay for itself?

Obviously, this is a rather intricate matter and very dependent on the particular welfare system you're talking about. I don't know anything about the german one.

But I think, politically, the big issue is the idea of handing over money to people without requiring them to look for work. That's a tough nut to crack, no matter how convincing your anti bureaucracy stance is. I doubt that it's going to happen.




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