renovator said:
You guys think its the fault of legislation i think its the fault of the business owner .
What you say in regards to a business model is correct reno, however, government legislation restricts entrepreneurship and creates unemployment and then has to raise taxes from those that do have jobs in order to pay social welfare benefits.
As consumers, we all want to pay as little as possible for our goods and services - labour is one of these things. Employers want to pay as little as possible for labour in order to maximise profits, conversely workers want to be paid as much as possible. In a free market, a balance is struck between the two competing parties and a business will employ as many workers as it needs in order to remain productive. If productivity increases then a business owner may choose to employ extra workers with the extra profits or the workers may negotiate an extra share of the profit, if productivity falls then business owners may shed workers or negotiate a reduced level of pay - whereupon those workers are free to either remain or leave and seek employment elsewhere in a labour market that is flexible and market driven. And here's the key reno, a labour market that is flexible and market driven is a labour market free of manipulation. By introducing legislation that fixes the price of goods and services (in this case labour), the government introduces inflexibility into the market - reducing the options of both employer and employee.
Minimum wage acts interfere with the free flow of goods and services, in the same way as say if the government legislated that a metre of concrete should be $160 or a kilo of coral trout should be $11. Other forms of government legislation such as licensing and zoning requirements do likewise, they all restrict entrepreneurship.
