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Here's Why Supply and Demand is Overrated! | Economics Explained 

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If you were to ask any random person on the street what it is that they knew about economics there is a pretty good chance that the first thing that they would blurt out would be the words “Supply & Demand”
The number of people out there willing and able to buy a good or service versus the number of people out there willing to sell a good or service, all individually vying to get the best possible price.
If demand increases prices increase, if demand falls prices fall and visa versa with supply.
Now I know this channel is called economics explained but for most of you watching all of this should pretty much go without saying.
The only issue is that this rosy picture is in no way a reflection of the real world.
The price you pay for groceries, that new iPhone, or hey even the price that your employer pays you to do your job all have a lot less to do with supply and demand than you might expect.
This departure from perfect economic assumptions can also tell us a lot about what to actually expect during times of economic turbulence and properly-being able to predict how an economy works, in reality, can very easily be the difference between riding out an economic storm or being crushed by it.
So what is going on here?
How are prices decided if not through supply and demand?
What does this mean for regular people in the economy?
How could all of this be used to make better policies and business decisions?
And how does this all make the case for a zero dollar minimum wage?
#MinimumWage #Unemployment #Economics
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21 окт 2020

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Комментарии : 2,8 тыс.   
@EconomicsExplained
@EconomicsExplained 3 года назад
A huge thank you to Acorns for making this video possible. Go check them out, it helps the channel and hopefully makes saving and investing that little bit easier! Sign-up for Acorns now and they'll deposit $5 into your investment account to help you get started with investing! 👉 www.acorns.com/ee?s2=SND1
@simulping4371
@simulping4371 3 года назад
no
@georgewood6897
@georgewood6897 3 года назад
acorns in australia called raiz? looks the same
@0xjrr
@0xjrr 3 года назад
I tried looking at it but it was a bit confusing for someone in Europe. By the way, another great video.
@jemesmemes9026
@jemesmemes9026 3 года назад
what music did you use?
@1337w0n
@1337w0n 3 года назад
I disagree with the assertion that a $0 minimum wage would lead to 0% unemployment, and as far as I can tell, you don't actually defend that position. Also, you're ignoring the fact that if there's no minimum wage, then when new workers enter the workforce, they can be paid lower than the previous generation, and then be conditioned to accept the wages they receive as acceptable and normal. And this isn't speculation; this is what's happening in the United States at this very moment, because minimum wage has remained stagnant for decades.
@quantumhorizon
@quantumhorizon 3 года назад
$0 dollar wage workers come in two forms: grad students and interns.
@garethbaus5471
@garethbaus5471 3 года назад
I actually made $20 an hour as an inturn.
@AdonisGaming93
@AdonisGaming93 3 года назад
But then if there was a UBI to at least stop you from starving...that $0 internship is fine if it means I can go pursue something I love and not starve. But too bad modern politics will never allow this.
@garethbaus5471
@garethbaus5471 3 года назад
@stockart whiteman depends a lot on what your major is, $20 an hour is about average for an engineering inturn.
@StuartFerguson55
@StuartFerguson55 3 года назад
@@garethbaus5471 but how much would an English inturn get paid?
@thomasdtrain
@thomasdtrain 3 года назад
@@StuartFerguson55 I have no idea what English majors would even intern as. Do English majors just go into education to teach English or something?
@bobguy280
@bobguy280 3 года назад
We talked today in my Econ class about how economist using “perfectly competitive” is the equivalent of a physics teacher using “in a vacuum”. Sure it’s true but it’s not what you find on Earth.
@firstwavenegativity6379
@firstwavenegativity6379 3 года назад
Theory is filled with these. Angles and lines also don't actually exist.
@Zenheizer
@Zenheizer 3 года назад
Great analogy
@jimr3286
@jimr3286 3 года назад
It's a disgrace to compare a natural science with a social one.
@honestabe6926
@honestabe6926 3 года назад
Haven't taken physics, but I definitely agree with the "perfectly competitive" part!
@_daudnasir
@_daudnasir 3 года назад
Cetirus Peribus
@viktorsigurdarson
@viktorsigurdarson 3 года назад
Iceland doesn't have a minimum wage because everyone has the right to join a union and 90% of people are in a union wich set their own minimum wage for each field of work
@firstwavenegativity6379
@firstwavenegativity6379 3 года назад
@Viktor Kolbeinn Sigurðarson That's the point of the video, in the absence of artificial rigidities, market forces (such as unions) still shape and regulate wages.
@viktorsigurdarson
@viktorsigurdarson 3 года назад
@@firstwavenegativity6379 well it's the law that everyone has a right to a union
@jessicaneafie590
@jessicaneafie590 3 года назад
@@ShiningTitan The United States. There are entires markets where unions are prevented from existing and regulation that has given them no power to actually collectively bargain.
@rohitkurup6191
@rohitkurup6191 3 года назад
@@ShiningTitan no where in the US. Federal law (and in many cases State law) prohibits companies from stopping their employees from joining unions..On the other end of the spectrum "Right to work" proponents think that somehow it means unions can't be formed in those states. In fact it's the not the case at all.. here is an excerpt of what this actually means..They claim this helps attract businesses but there is no evidence to actually back that claim up. 24 of the states already have these laws but a majority of these states have blue collared workers in manufacturing jobs and they also have unions..eg. Michigan, Ohio etc.. "Right to work" laws address situations related to memberships in labor unions -- In short, you never need to join a union or pay union dues to be hired or to work for a company. Commonly, these laws involve employers refusing to hire non-union workers or requiring that workers join a union as a condition of employment. This behavior is illegal because people have the "right to work" without being part of a union under state and federal laws.
@rohitkurup6191
@rohitkurup6191 3 года назад
@@ShiningTitan maybe read my second paragraph which literally says the same thing you are saying..
@husseinbonaud1883
@husseinbonaud1883 3 года назад
My wife introduced me to the awesome concept of walking out of a restaurant after having been seated because either the prices seem too high and no item on the menu is really appealing. Now it feels like a real life superpower. I mean... I didn't know I could do this!
@kirstyjjamieson
@kirstyjjamieson 3 года назад
Yay - we do the same.
@justinblechinger6723
@justinblechinger6723 3 года назад
As someone who worked in the food industry for a decade. Please don’t do this. Ask for a menu or search up one on the internet. It sucks when you’ve been sat and the table leaves. I lose that table and the money.
@danielye3600
@danielye3600 2 года назад
@Elias Håkansson If I do this and I have the cash, I’ll usually leave the server a dollar or two. They did do some work and it’s not within their power to change prices or the menu.
@66maybe66
@66maybe66 2 года назад
@@justinblechinger6723 As someone else who has worked in the food industry for almost a decade, I 100% disagree. People are not obligated to pay just for sitting down. Unless your restaurant is completely packed and has no spare tables, there's no real difference between them checking out the menu for a couple minutes or them not showing up at all aside from a very minor inconvenience.
@aceous99
@aceous99 2 года назад
@@justinblechinger6723 u sound desperate man.. have you heard of onlyfans?
@Quickonomics
@Quickonomics 3 года назад
EE: "If a company was to charge $5000 for their new phone, nobody would buy it." Apple: "Am I a joke to you?"
@ericnipas49
@ericnipas49 3 года назад
They actually sell a phone without a charger and their fanboys still find a way to justify it... "it's better for the environment"... lol
@osl5686
@osl5686 3 года назад
The Ipad is like a Big iPhone so yeah. Apple played their hand right
@rexmann1984
@rexmann1984 3 года назад
Yes you are Apple.
@economicsinaction
@economicsinaction 3 года назад
**Tim Cook liked this comment**
@manueloctaviomartinez3173
@manueloctaviomartinez3173 3 года назад
@@ericnipas49 money doesn’t flow to non productive companies. Cry all u want but if they’re rich it’s because of something
@harrybalzac7450
@harrybalzac7450 3 года назад
“Ask yourself when was the last time you checked the price of a nice restaurant before you sat down” As someone who always checks, I feel attacked 😥
@MicahLoRusso
@MicahLoRusso 3 года назад
Check most of the time also
@TheManinBlack9054
@TheManinBlack9054 3 года назад
Lol, me too
@fireballxl5768
@fireballxl5768 3 года назад
Always check the price of a service or product.
@imho7250
@imho7250 3 года назад
My checking of prices is probably why I rarely sat down in an expensive restaurant. Lol
@ReasonableRadio
@ReasonableRadio 3 года назад
tbf this is very normal in a lot of countries, especially in Europe. In Canada where we're influenced by a lot of different cultures, it's a coinflip whether a restaurant has its menu posted outside, and depends on the cuisine and genre of that restaurant.
@mastergreenfox6004
@mastergreenfox6004 3 года назад
"When was the last time you checked the price of a nice restaurant before you sat down?" Every. Single. Time. I guess I'm not normal for wanting to make sure the price seems reasonable for the food and location before I'm obligated to pay it. I don't just waltz into some new location without trying to find information on it first.
@Olivia-W
@Olivia-W 3 года назад
... Yep. I don't have the funds to just willy nilly waltz into a restaurant and pay whatever the going rate is. Going to a restaurant is a _planned_ event for me.
@Anonymous-ld7je
@Anonymous-ld7je 3 года назад
Me too buddy.
@At0micMeltd0wn
@At0micMeltd0wn 3 года назад
I just don't go, ez
@mikemiller7377
@mikemiller7377 3 года назад
This is just to let you know that you are in violation of the laws of economics. Please adapt your behaviours to better conform to the standard model. Thank you for your cooperation.
@briandbeaudin9166
@briandbeaudin9166 3 года назад
But how can you possibly know if a restaurant is worth it until you've eaten the food? If you are basing your decision to eat at a place solely on price that is an irrational decision. There may be other factors inside the restaurant such as the ambience which may influence your desire to pay more. If price will influence your decision, then perhaps you would be better off just to eat at McDonald's...
@jaketran
@jaketran 3 года назад
I've been featured on Economics Explained. Does that mean I've finally made it?
@admiral_waffles533
@admiral_waffles533 3 года назад
It just means you invited him to your CIA blacklist. But yes, it does in a way
@Seth9809
@Seth9809 3 года назад
Oh wow.
@TSDamiano
@TSDamiano 3 года назад
Hi jake
@EPICoutcast24
@EPICoutcast24 3 года назад
Eyyyyy Sponge bob mi boy. Just came from you vid on lobbying. Yeah I think you made it bruh
@cydre3401
@cydre3401 3 года назад
The RU-vid crossover I never thought I needed
@bubblewrapmonster8801
@bubblewrapmonster8801 3 года назад
Case for 0$ minimum wage Jeff Bezos: You have my attention
@EconomicsExplained
@EconomicsExplained 3 года назад
oh boi don't give him any ideas
@bubblewrapmonster8801
@bubblewrapmonster8801 3 года назад
Lol you started it😂 love your content, I’m studying hard on my economics degree at uni!
@michal5642
@michal5642 3 года назад
@@EconomicsExplained BOI
@livethefuture2492
@livethefuture2492 3 года назад
how bout some automation for good measure, don't need to pay the machines... effectively 0$ wage, just initial price, and cost of electricity.
@AlecMuller
@AlecMuller 3 года назад
Once you have a lead in automation (which Amazon does), it's a lot easier to crush your competitors with a $15/hr minimum wage than a $0/hr one. With good enough automation, a $25 or even $40/hr minimum wage will still give Amazon fat profits along with an edge over competitors.
@wrednax8594
@wrednax8594 3 года назад
Do the Economy of Argentina, the only developed country to go back to developing.
@rtfj5341
@rtfj5341 3 года назад
Yes please. I watch your Venezuelan video and there were a LOT of wrong things. I'm Venezuelan. But if you do a good argentinian video I will like it
@pnp072000
@pnp072000 3 года назад
Isn't Brazil going back to developing too?
@economicsinaction
@economicsinaction 3 года назад
... so far
@tiaandeswardt7741
@tiaandeswardt7741 3 года назад
@@pnp072000 Not sure if Brazil was ever developed to start with...
@joaopedroraffo7964
@joaopedroraffo7964 3 года назад
you mean before Peron? Argentina was the 6th most powerful economy after WW2 if im not mistaken even europeans were jealous of their lifestyle
@vitus1549
@vitus1549 3 года назад
Yes, Denmark has no minimum wage, but in turn we have extremely good union laws. Unions set standards (paid time off, vacation days, minimum wages etc.) across entire industries, and these are negotiated every 2-4 years. Unions even negotiate these same standards with the government. So in practice the minimum wage is on average $17.5, but differs from industry to industry.
@GiRR007
@GiRR007 2 года назад
Nothing is stopping unions from doing the same in the US
@ottobenthaus3349
@ottobenthaus3349 2 года назад
@@GiRR007 ha lol, unions and usa, good luck trying to get smth done with unions in the usa, there are many reasons why euorpe has usually way stronger unions but the most important is job securtity whoch doesnt exist in the usa and many other reasons
@altvibr
@altvibr 2 года назад
"It differs from industry to industry" I think thats what he was getting at, not a flat out universal minimum wage.
@realmadridsi
@realmadridsi 2 года назад
@@ottobenthaus3349 And what is the big difference between Europe and the US why it's possible over here and not in the US? We have big companies too that hate spending money and would pay you 1 euro an hour if they could.
@ottobenthaus3349
@ottobenthaus3349 2 года назад
@@realmadridsi if they could, but they can't due to historic circumstances unions in Central Europe for example hold a strong position of power. The European unions weren't used for Money generation like The American unions by The mob, and The companies didn't have so insane monopolies on The economy, The unions stayed Strong in Europe due to lacking sources for erodation
@GlutesEnjoyer
@GlutesEnjoyer 3 года назад
While the minimum wage isn't technically set by the government in Iceland, I need you to know that there is, in fact, a minimum wage in Iceland. And it is set in agreement between the many unions here, with deliberation with the government and other governing bodies. I'm not sure how Sweden and Norway do it, but in Iceland there is absolutely a hard minimum wage.
@angeleyes2c
@angeleyes2c 2 года назад
It's the same thing. The umbrella organizations for the employers and the employees negotiate all wages. Which doesn't apply to guest workers from outside nations like thailand, which is why they're popularly imported as cheap labour for simple things.
@yvindvego9404
@yvindvego9404 2 года назад
in Norway there is a minimum wage in some professions like transport, carpentry, plumbing, electrician, etc. basically its in professions that have a higher amount of foreign labour. who would pay a norwegian carpenter 250 kr when you could pay a polish person 150 kr and with less benefits.
@johnny_eth
@johnny_eth 2 года назад
Sweden and Norway also do it by collective bargaining.
@mrfreckles666
@mrfreckles666 2 года назад
I think the point remains that it’s not a flat out minimum wage across the board because wages are incredibly nuanced between professions so a blanket wage for all of them is a bit silly
@AstolfoGayming
@AstolfoGayming 3 года назад
It's worth noting that the countries mentioned at 17:20 have very powerful unions, so even if there is no standard minimum wage, you'll still be earning a pretty decent amount no matter what job you do.
@EconomicsExplained
@EconomicsExplained 3 года назад
definately worth mentioning. THey have alternative protections in place outside of regulation. Unions, Strong welfare, UBI's, all help make this possible.
@alexcereuceta5907
@alexcereuceta5907 3 года назад
@@EconomicsExplained echoing a bit what op mentions, the idea of a $0 minimum wage in a “free market capitalism” system such as the American, is unsustainable without the social safety-netting of said Nordic countries. The video is great, and I knew that the examples were coming, but our “laissez-faire capitalism” enthusiast (read libertarians), will absolutely and unapologetically abuse your video to push against minimum wage increases, choosing to ignore the social systems put in place by the government itself to regulate the virtual $0 minimum wage Scandinavian work market. An extra 45 seconds or so to explain their remarkably robust safety net systems would’ve made your video simply perfect.
@caorusso4926
@caorusso4926 3 года назад
Just look at india, they have 0$ wages and still happy. The nordic system is inefficient and overrated
@czechmeoutbabe1997
@czechmeoutbabe1997 3 года назад
@@caorusso4926 yeah uh huh www.indiatoday.in/business/story/indian-economic-slowdown-challenges-unemployment-coronavirus-inflation-demand-1713197-2020-08-20
@indeed1023
@indeed1023 3 года назад
@@caorusso4926 India has a huge amount of poverty and the wealth disparity there is insane....
@kuyajez8384
@kuyajez8384 3 года назад
"$0 minimum wage" You mean "internships"?
@EconomicsExplained
@EconomicsExplained 3 года назад
haha well however you want to market it
@grahamturner2640
@grahamturner2640 3 года назад
🤣
@saasda6255
@saasda6255 3 года назад
@@EconomicsExplained you know the job market is bad when free labour is hard to get
@j.fo.v5260
@j.fo.v5260 3 года назад
Slavery
@dickiewongtk
@dickiewongtk 3 года назад
@@j.fo.v5260 Slave can't quit their jobs. Even if there is no minimum wage, you can quit yours and find a better one.
@oskarljung2201
@oskarljung2201 2 года назад
you cannot mention Scandinavia's lack of a state-mandated minimum wage without mentioning the role of unions in the labour market. because that is the only reason that no minimum wage works in the first place
@jbyrne8977
@jbyrne8977 2 года назад
Yeah, this channel feels pretty biased. Either this guy doesn't understand economies, or is being disingenuous about the market... Bit sad to see
@crow2989
@crow2989 Год назад
@@jbyrne8977 this guys whole career is understanding the economy
@TheRandCrews
@TheRandCrews Год назад
@@crow2989 yeah but it’s still flawed and incorrect
@adamcraft9118
@adamcraft9118 Год назад
@@TheRandCrews you’re assuming economics is a hard science. It’s definitely not.
@flyingspinners1
@flyingspinners1 10 месяцев назад
They also understand that they have to pay a certain minimum otherwise nobody would buy their products/services due to lack of money
@joshuacollins385
@joshuacollins385 3 года назад
"When was the last time you checked the price of a restaurant before you sat down?" Pretty much always. Do restaurants not have menus visible outside the door where you live? I love the idea that restaurants are hostage situations where once you're in you can't leave without at least buying the cheapest main on the menu.
@jeremyanderson3819
@jeremyanderson3819 3 года назад
Uh, mcdonalds is NOT a restaraunt.
@joshuacollins385
@joshuacollins385 3 года назад
@@jeremyanderson3819 I agree, and McDonald's is pretty much the only place locally I can think of that obscures their prices. Do restaurants there really not have their menus stuck to the inside of the window or inside a waterproof box on the outside?
@nurainiarsad7395
@nurainiarsad7395 3 года назад
agreed. here even posh restaurants have a menu left outside so you can see what they’re offering before ever walking in. sometimes i don’t even consider a restaurant that doesn’t have their menu *outside*. coz... there are other options who remove that little bit of doubt for me, they’re... ten steps away?
@mwbgaming28
@mwbgaming28 3 года назад
@@joshuacollins385 the only place you can see prices at McDonald's in Australia (at least in Adelaide anyway) is on the self service screen, or in the drive-thru The screens above the counter no longer show the menu, now they just show ads and other pointless garbage It's actually impossible at my local maccas to place an order via human to human interaction unless you're in the drive-thru (literally there's no eftpos terminal or anything on the counter, it's either use the screen, or use the drive-thru)
@aravind787
@aravind787 2 года назад
I don't know any person who doesn't care about prices in a restaurant. In a lot European Restaurants the entire menu is placed outside so people can decide if they can afford it.
@benjaminfortune2707
@benjaminfortune2707 3 года назад
7:00 I swear to god, every time on this channel when the question is asked, "When was the last time you...?" my answer is always "this week"
@Olivia-W
@Olivia-W 3 года назад
True. Though I generally don't go to restaurants, because eating out is usually more expensive. When I do eat out, it's most likely a promotion at Mcdonald's and I know exactly how much I'll be paying before I ever step foot inside.
@TheKyrix82
@TheKyrix82 2 года назад
I'm starting to think this channel may be a little out of touch...
@adamhenriksson6007
@adamhenriksson6007 3 года назад
You have really good clickbait in a way that i rarely see anyone else have. Title: "Supply and demand is overrated" Text on image: "Case for 0$ minimum wage" My thought is "How those you could possibly be linked?". My mind spins along, but i know that the only way i can find out is if i click, so i do. Really good.
@redhidinghood9337
@redhidinghood9337 3 года назад
And he actually answers it
@EconomicsExplained
@EconomicsExplained 3 года назад
haha nicest comment calling me a click baiter ever
@emperorza5777
@emperorza5777 3 года назад
@@EconomicsExplained The second comment is the most important lol
@haughtywillow2499
@haughtywillow2499 3 года назад
Minimum wage is just a price floor for the labor market. That’s it. Draw a horizontal line at your minimum wage price on a supply and demand graph and there you go you got a surplus of labor (unemployment).
@Mythhammer
@Mythhammer 3 года назад
@@EconomicsExplained If it works, use it. ^^
@TheZatrahc
@TheZatrahc 3 года назад
You’re right, it’s been over a year since I checked the prices of a restaurant before I sat down. . . It’s also been a year since I sat down in a restaurant
@jeremyquentin42
@jeremyquentin42 3 года назад
EE: Without a minimum wage, there would be no unemployment. Victorian era England: I beg to differ.
@angeleyes2c
@angeleyes2c 2 года назад
Yeah that's complete bs that never worked.
@littleman6950
@littleman6950 2 года назад
People aren't going to waste any hours of their day making money for someone else if they themselves will still end up homeless and starving anyway.
@Stszelec01
@Stszelec01 2 года назад
The supply and demand needed only couple generations and threat of socialism to back of a little great system
@andretsang7337
@andretsang7337 2 года назад
@@littleman6950 they literally do that right now anyways. Plenty of people work poverty wages and are living out of their car.
@speedroidterrortop3171
@speedroidterrortop3171 2 года назад
@@littleman6950 Well then the supply of workers would go down and businesses who need workers will be forced to up their wages… duh 😂 Maybe you should’ve thought about the video for more than 2 seconds before commenting 🙄
@QuestionEverythingButWHY
@QuestionEverythingButWHY 3 года назад
"If all the economists were laid end to end, they would not reach a conclusion." --George Bernard Shaw
@tiaandeswardt7741
@tiaandeswardt7741 3 года назад
You can pretty much say the same for any form of profession. The lack of a consensus on something also isn't automatically bad. I don't really know what the point of the quote is
@christopherellis2663
@christopherellis2663 3 года назад
@@tiaandeswardt7741 G B Shaw was a public figure and playwright, and was expected to exude witty aphorisms.
@tiaandeswardt7741
@tiaandeswardt7741 3 года назад
@@christopherellis2663 Even those that are nonsensical after thinking about it for a moment?
@jstpsgthru
@jstpsgthru 3 года назад
@@tiaandeswardt7741 Please explain? Isn't it just an observation about the complexity of economics; that it is as much an art as a science? It is an idiom that helps us normal people understand the world.
@ninety1nethagawd
@ninety1nethagawd 3 года назад
youre going over heads here. they believe that economists have already concluded things and that its up to us to fill in the gaps they leave.
@EconomicsExplained
@EconomicsExplained 3 года назад
Zero dollar wages and Beets... I feel like this video will summon a Dwight.
@samryder6129
@samryder6129 3 года назад
Ahahha
@simulping4371
@simulping4371 3 года назад
ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Mz3Mi_OZYno.html
@sudhanvakashyap297
@sudhanvakashyap297 3 года назад
@@simulping4371 @furrypolice
@ben927
@ben927 3 года назад
@economicsexplained You mention that the nordic countries do not have government set minimum wages. What you did not mention is that these countries have very strong national unions who negotiate for an unofficial minimum wage
@Vid_Master
@Vid_Master 3 года назад
When will you do a video on Goose Grease cost inflation???
@GlutesEnjoyer
@GlutesEnjoyer 3 года назад
15:31 totally disagree. I think you underappreciate the human's capacity for apathy. If they are going to be paid 20 cents an hour, there are inevitably going to be a percentage of humans that will deliberately remain unemployed until they are paid what they feel they are worth. Thus unemployment will never be zero.
@colto2312
@colto2312 3 года назад
make more picking up pop cans on the side of the road
@arieroskam4000
@arieroskam4000 3 года назад
He means 0% unemployment in the sense that it would be now be theoretically possible due to the removal of inhibiting laws, not that literally every man, woman and child would be working at McDonalds.
@Jose-gc8rl
@Jose-gc8rl 3 года назад
Why would I or anyone on a developed nation ever sell the scarse time of our lives for a meagre 0.20 cents an hour, it'd be like working 50 hours for a Netflix subscription, basically a long week's worth of work, it is simply ridiculous.
@louip11913
@louip11913 3 года назад
This. I’m at the point in life where there is zero chance I’d work for less then 20$ an hr. That is just the minimum my time is worth
@aravind787
@aravind787 2 года назад
Exactly! This video is misleading on many accounts.
@kinestatic
@kinestatic 3 года назад
"When was the last time you checked the prices at a restaurant before you say down?" .. every time...
@hanysslunzok1626
@hanysslunzok1626 3 года назад
Scandinavian countries don't have state regulated minimum wage but they have "effective" minimum wage, set by workers unions in different sectors. These unions are very strong and backed by the law and government for example in Sweden. So Scandinavians technically don't have minimum wage but basically they do. In Switzerland it's pretty similar, in industry minimum wage is mostly regulated in Collective labour agreements. Some cantons even introduced minimum wages, and they are highest in the world.
@olska9498
@olska9498 3 года назад
Exactly! These minimum wages due to collective bargaining of strong trade unions are even much higher than their federal mandated counterparts. I really don't understand why these minimum wages would be any less "sticky" than federal laws. After all, fast food workers in Denmark earn a minimum wage of 20$/hour, set by the trade unions.
@MrMajani
@MrMajani 3 года назад
Which is fair. The right to organize. Unions have their pros and cons, but as long as they are joined voluntarily by their members, it's OK.
@quintessenceSL
@quintessenceSL 3 года назад
This is assuming negotiation for wages only travels one way- i.e. what an employer offers vs. what an employee demands. No one is forcing business to buy labor at that price, and like everyone else in the world who can't afford a thing, they can do without (or seek alternatives). That is diametrically different than a price floor for labor.
@hanysslunzok1626
@hanysslunzok1626 3 года назад
Labour "supply"is effectively "monopolized" by workers unions in Scandinavian countries, so it is basically the same as minimum wage
@eror151
@eror151 3 года назад
@@MrMajani in many workplaces in Norway you automatically join a union through the job you're working at.
@Elbrasch
@Elbrasch 3 года назад
* looks at some of his coworkers * No, some people have a negative hourly wage, i.e. they cost the company more money than they bring, even when their wage is 0. That is one of the reasons why charities don't take on unlimited volunteers.
@ArtumTsumia
@ArtumTsumia 3 года назад
This is certainly true; more employees does not necessitate more productivity. At the very least, it increases managerial overhead and particularly poor employees can cause problems for more experienced workers in the form of training or time lost to fix mistakes. That's of course assuming that such things can be tracked to some extent, in which case a manager can send them home early or such (I've commonly done this, and these employees don't usually mind even if they are paid hourly). That's not even taking into consideration some of the more complex work environments I've been in where even "productive" workers can cost the company huge amounts of money by creating bottlenecks and such for other employees which would not be remedied simply by that worker earning no wage.
@EternalKernel
@EternalKernel 3 года назад
Love those "I'm better than all of my coworkers, and likely everyone everywhere in any similar position" They always fail upward.
@Elbrasch
@Elbrasch 3 года назад
​@@EternalKernel Part of it was overemphasizing stereotypes to refute the videos point that free labor is always desirable. Something that has nothing to do with being better or malice is inexperience. Often, for example in Software engineering, it can take up to 6 month till a new employee is producing more value than they have cost up till then, including time spent vetting all the candidates and teaching the new one the difference between engineering and craftmanship.
@Elbrasch
@Elbrasch 3 года назад
Also, I was part of a team that fucked up the architecture of a software product. We burnt a lot of money over a year and it took another team half a year to unfuck it all. Main reason we identified afterwards? Almost all of us were in stretch roles, i.e. it was the first time we had this kind of position. We definitely produced negative value there.
@richardboesen7423
@richardboesen7423 3 года назад
@@Elbrasch YOU didn't produce negative value, the people ABOVE YOU who set the conditions INCREASED THE COST without factoring that into the Price received for the product supplied. You're much too young to remember ( at the Top of your reflection ) but it's "The Peter Principle" writ Large and ALWAYS Denied by "those at the Top" 😒
@RajbirBhattacharjee
@RajbirBhattacharjee 2 года назад
all, well, unless you realize how monopolised and cartelized most sectors have become. Also the countries that you name - Sweden, Denmark etc. -also have very good social security. Also in countries like Sweden, you can't fire an employee without adequate notice - which can be upto 6 months.
@ALittleMessi
@ALittleMessi 2 года назад
How common is a prolonged notice like that? That has to be a strain on some companies, even if you have smart planning
@RajbirBhattacharjee
@RajbirBhattacharjee 2 года назад
@@ALittleMessi it's a legal requirement and is a function of the number of years of service. Nordic countries have very strong labor laws. Yet they do very well in terms of innovation and profits.
@ALittleMessi
@ALittleMessi 2 года назад
@@RajbirBhattacharjee That's not really what I was asking though. The less flexible a company is the worse off it can be in drastic changes(i.e. last year). If you have to fire an employee 6 months ahead of time, that essentially gives no flexibility. I'd like to see what impact that has on companies
@10010110100102Error
@10010110100102Error 2 года назад
@@ALittleMessi impact is not that great, it's the same in germany. there's various options, the most common being short time work. employees are sent home to remain on standby when the company needs more people again. they get less money for that time, but remain employed, which is good for their health insurance as well as their retirement. the flexibility you talk about is a myth the americans want just so they can keep the employees on edge as well as the companies not responsible for their workers. there is still the option to fire people when the company has a very bad time, but the advanced notice still remains, so it's generally those that got hired most recently that are fired first. companies also tend to have a good amount of money in the back, as they know about these requirements, so they can easily pay for that time. the worker will of course still work during the time until the employment is terminated, so he will still make money for the company to pay his wage. not doing so would be cause for termination with extreme causes, similar to the employee attacking people, willingly and on purpouse damaging expensive equipment, violating their employment contract, or stealing, so they can get fired imediately. the great benefit is, that the employees have a lot of time to search for a new workplace that thaey then can start in almost imediately after their former employment has ended, which puts much less strain on the social security net. it's far less spiradic who's employed and who requires help for a time. so, overall, it's actually much more beneficial for the employer as well as the employee and wevn the government, it keeps more money in circulation as the worker doesn't suddenly have zero income, and it offers nearly as much "flexibility" as the american system without the downsides to all parties.
@grantschwartz5015
@grantschwartz5015 3 года назад
Really well done. There is one point at the beginning I think you may have looked at incorrectly though. You mentioned how in perfectly competitive markets beet farmers would continue to undercut each other until they did not make a profit. However, farmers would cut prices until they make 0 economic profit not accounting profit - meaning including the opportunity cost of doing something else plus their monetary profits. Therefore, farmers will still be making $ profits. Of course markets are never completely perfect but I think the idea of economic profit vs. accounting profit is super relevant and often overlooked. Super minor thing and love the videos!
@PieterMulder
@PieterMulder 3 года назад
I would honestly not go into any restaurant if I don't have at least an idea of what their prices are beforehand.
@yottamozg
@yottamozg 3 года назад
The whole situation with minimum wage in Switzerland is very different from how it was referred to in this video. First of all, minimum wages here are not introduced on a federal level, rather some cantons have them (like Jura, Neuchatel with 20 CHF/h and Geneve with 24 CHF/h - roughly a 26.5 USD/h - the highest minimum wage in the world). And although there are no federal requirement for a minimum wage directly, there are other regulations for a minimum payment to a full-time employee, such as that employee wouldn't be under a poverty line (which would be around 40000 CHF/y in ZH making an effective minimum wage for a full-time employee in the region of 18 CHF/h).
@BMXaster
@BMXaster 3 года назад
Very true and also Geneva is hella expensive. Probably more than Zurich. And 18usd/hour in zurich is actually a pretty hard fight already. You will look at that 1 week italy holiday per year 3 times if you really can afford it
@Kenionatus
@Kenionatus 3 года назад
There are also federal minimum wages in certain sectors which are notorious for bad wages, such as cleaning services.
@sethjones-mettie9411
@sethjones-mettie9411 3 года назад
A video about trade unions and whether or not they’re good for economies would be killer!
@benjamino.7475
@benjamino.7475 3 года назад
Working Poor: “Allow us to introduce ourselves”
@iwersonsch5131
@iwersonsch5131 3 года назад
Maybe people only hate taxes because the taxes aren't good enough to abolish the working poor with UBI?
@iwersonsch5131
@iwersonsch5131 3 года назад
​@Matt Olivier You will have to explain to me why you think that taxes are theft. It's probably not worth your time, though, as all it will do is motivate me to sit down and explain to you why they are not.
@tongpoo8985
@tongpoo8985 3 года назад
@@iwersonsch5131 every penny of your taxes that gets spent on dumb bullshit or bloated bureaucracies is theft. The proportion of that depends on where you live
@iwersonsch5131
@iwersonsch5131 3 года назад
@@tongpoo8985 That's something I'm a little less opposed to than making sure everyone can afford food, shelter, and medical treatment, and that your city's lighting, roads, teachers, and democrazy are funded. Still, I would like to hear your definition of "theft" and why it applies here.
@tongpoo8985
@tongpoo8985 3 года назад
@@iwersonsch5131 taxes are meant to fund the public good. Any amount of your taxes that do not go toward creating societal value is theft. The definition of theft in this case is money that you're compelled to pay by law and doesn't get put towards any of the sort of things you mentioned or a portion is swallowed by excessive bureaucracy or inefficiency.
@ayarzeev8237
@ayarzeev8237 3 года назад
Wait, wait, wait. You're just going to drop all those European countries as examples of limited minimum wages without going into the the other protections and systems those countries have to keep it from being too exploitative? At least tell me you're going to make a follow video on that.
@pijuskri
@pijuskri 3 года назад
Especially when those "no minimum wage" countries literally have min wages just set by unions
@dereknalley
@dereknalley 3 года назад
Yeah, I felt that was pretty disingenuous as well. Clearly someone as well informed as this channel would know WHY they can have zero minimum wage. Hint: They have incredibly strong anti-corporate powers in the country.
@olska9498
@olska9498 3 года назад
Right?! These nations might not have federal mandated minimum wage laws, but minimum wages due to collective bargaining of strong trade unions. How would these minimum wages (which are even much higher than their federal mandated counterparts in the USA) result in any less of "sticky prices" than federal mandated minimum wages?
@TheBard1999
@TheBard1999 3 года назад
If you watch rest of his videos, you will see that he never goes deep into his arguments. Only talking about most basic things, without even bringing any numbers to support it.
@blackgold2589
@blackgold2589 3 года назад
@@TheBard1999 I mean it’s supposed to be for uniformed people going in-depth isn’t something this channel is for
@sunsparkda
@sunsparkda 3 года назад
Oddly enough, your hypothetical example is exactly what my company did at the start of the pandemic. And rather than seeing it as you suggest - as a signal to flee the company - it was universally seen as a good faith effort to preserve jobs in the face of serious economic turmoil. It probably helped that the owners and managers took a bigger pay cut percentage wise at the same time, we're in a well off industry (IT consulting) so there was room for the pay cut to not be TOO painful, and it was explicitly temporary until conditions improved.
@WorthlessWinner
@WorthlessWinner 3 года назад
EconomicsExplained needs to take his own advice and think about human psychology,. not just what models would predict :Y
@EPICoutcast24
@EPICoutcast24 3 года назад
Shoulda commented below you, but yeah it depends what the leaders value more, community, or the individual pursuit of profit. Short term gains of greed are eclipsed by long term profits through relationships
@sorsocksfake
@sorsocksfake 3 года назад
@@EPICoutcast24 It's a false contradiction, as illustrated by the (in my opinion disgusting, but accurate) term "human resources". Or "human capital". Relationships, reputation and so forth are very real assets and most business is well aware of their value. This is part of their profit calculation. In the long run such companies ought to self-destruct through unethical practices, removing the problem from the long-term calculation. Unfortunately workers and consumers likewise often act out of greed (if defined as short-sighted profit), which is how companies like Amazon can continue to profit.
@99Cafer99
@99Cafer99 3 года назад
​@@sorsocksfake I believe that Amazon will fail in the long run, at least in Germany. When the poorer neighbour countries will be better of, were currently all longtime Amazon delivery employees come from, their whole employment system will collapse. As no German would work and is actually working at the conditions Amazon currently offers for their drivers. They would have to increase wages so much, that the traditional stores will be way cheaper again. Because working in an store is currently paid better, with better working conditions, as you e.g. don't have to be in bad weather conditions or lift heavy stuff without machinery, and you have clearly defined working hours. So Amazon would need to pay an significantly higher salary to an delivery driver than an cashier earns at Aldi to have enough employees. Even now, were non-German speaking people with no comporable working opportunity in their homeland are working there, they are always hiring and never get all positions filled. Combine that with the higher personell usage of delivering a few items to your home to sitting at an register and just scanning items and their Online-retail business will collapse. Lucky for Amazon that they make most of their profits elsewhere.
@TriWaZe
@TriWaZe 3 года назад
I consider a company scummy when it pays minimum wage. Its like openly saying I would pay my employees less if I wasn’t forced to pay them this amount.
@atomsmasher9411
@atomsmasher9411 3 года назад
Or would own slaves if it were allowed. Actually, I suspect that slaves would incur more cost than minimum wage workers do.
@scifirealism5943
@scifirealism5943 Год назад
Yep.
@Foolish188
@Foolish188 3 года назад
Sticky prices is why Hershey Bars are always getting smaller. Instead of raising the price, Hershey shrinks the Bar. And then one day, Hershey decides that they have shrunk it too much and come out with the original sized bar at a new higher price. Usually with a slightly lower unit price to convince the buyers that they are getting a good deal. Then Hershey starts it all over again.
@XOPOIIIO
@XOPOIIIO 3 года назад
In nordic countries minimal wage isn't set by law, but it still exists in contract with labor unions.
@skepticcat2443
@skepticcat2443 3 года назад
yes, here in Denmark we do not have a minimum wage law but we have very strong labor unions that negotiates the wages for each sector.
@oentoleas
@oentoleas 3 года назад
@@skepticcat2443 Yeah, you basically have the only true pro-market way (combating the natural, unbreakable oligopsony of the employers with an artificial oligopoly of the unions), which sets a much fairer and market-cleared price(=wage). The fact that any neoliberal or capitalist would be against this crucial, market-induced balancing of the job market (against the unions) is proof of the level of self-contradicting, rich-leaking morons they are.
@tonycatman
@tonycatman 3 года назад
Not everyone belongs to a union. For as long as there are people who are not in an union, those who are worth less than the MW can get a job. In effect, if the MW doesn't apply to everyone, it doesn't apply at all.
@robconstant797
@robconstant797 3 года назад
I'm not sure hpw it works in Sweden, but in the Netherlands we have what are called Collective Labour Agreements which bars any employer who has signed it or is part of an industry association which has signed it from hiring anyone at a price which is lower than the specified wage. I suspect it might work the same in those countries.
@crose1466
@crose1466 3 года назад
Which I, as a right wing federalist, would prefer far more than a national minimum wage.
@mli3793
@mli3793 3 года назад
I have actually walked out of resturants after getting seated. It has been resturants with outrageous prices and i just get annoyed at how they tried to use this cultural shame to their advantage.
@davidml1023
@davidml1023 3 года назад
I'm seeing more restaurants leave the price off drinks. That's on a whole next level of douche baggary.
@grizzlednerd4521
@grizzlednerd4521 3 года назад
It's also becoming easier to check the menu and pricing online before you book. Just today my work Friday lunch changed proposed venue because of online menu/pricing.
@heatherswanson1664
@heatherswanson1664 3 года назад
Usually after they already serve me water, I don't feel bad for wasting their time because they wasted mine
@jaymzx0
@jaymzx0 3 года назад
If I'm worried that a restaurant is out of my price range, I usually ask for a menu at the front desk under the guise that I'm not sure if I'm in the mood for whatever they're serving.
@fernandouseodysee5027
@fernandouseodysee5027 3 года назад
I have leaved restaurants too for the same price. People needs to understand that they are the ones that are paying for being treated well. If the restaurant tries to shame me then I will never consider them again and that's it. Still I have never been tried to be shamed by any restaurant.
@awijaya2116
@awijaya2116 3 года назад
Aside from the Nordic countries, Singapore also has no minimum wage (except specific jobs like cleaners and security guards). Their reasoning is almost word-for-word what you've said. However, Singapore also has a government that has an employment credit scheme, where workers making below a certain wage get additional money from the government (like low-income benefits, except you need to be employed to get it). They also have an extensive state-supported pension program, one of the largest Sovereign Wealth Funds, and some of the highest home ownership rates in the world, so the system can work.
@hornzbiddle1189
@hornzbiddle1189 3 года назад
"When was the last time you checked the price of a nice restaurant before you sat down?" Between all the six-figure hypothetical salaries you talk about and comments like this, I really regret not going into the financial sector.
@rblyle382
@rblyle382 2 года назад
For real. Teacher salary here so yeah I check prices every flipping time.
@planets9102
@planets9102 3 года назад
17:20, You forget one massive factor in this, unions, one thing all these countries also have is very strong unions, combined with laws and regulations preventing the busting of them. You can't destroy labor protection without replacing it with labor power. All you do is create a market meltdown; as labor efficiency increases more people are fired because you can do the same with less, the labor supply increases and the price of labor drops, while more stuff can be produced but nobody can buy it, this leads to overproduction and eventually a market meltdown. Something like this played a big part in what lead to the great depression, Ancapistan would last a couple years at most. High labor power prevents this as an organized workforce can force wages to rise with productivity and make increased productivity = increased quality of life as it should.
@Robbedem
@Robbedem 3 года назад
yeah, The reason those countries don't have a minimum wage is not because it helps their economy, it's because they don't need it in the first place. Also, they kinda do have a minimum wage since (almost?) nobody would be stupid enough to go work for less than they'ld get from unemployment benefit.
@klogechris
@klogechris 3 года назад
Yeah it is a combination of our strong unions and our high unemployment benefits, which makes this whole structure possible. In Denmark our system is often referrred to as “flexicurity” since it combines a very flexible labor market (easy to hire, easy to fire), which is god for the employer, with a lot of security for the unemployed, which is good for the employee
@lek1223
@lek1223 3 года назад
@@Robbedem The best case for taking such a job would be if there was obvious clear and likely room for promotion, Etc. start a army job as a private, good chance for a promotion to a corporal < sergeant < etc. (as a clear example) But yea, why would people take a job at a gas station at a super low wage, as there is no real opportunity to get promoted.
@darrin7684
@darrin7684 3 года назад
@@klogechris So does Denmark have a zero wage economy?
@klogechris
@klogechris 3 года назад
@@darrin7684 Well officially there is no minimum wage, but, as I pointed out, this flexible system is only possible because of High unemployment benefits and strong unions, which gives the worker leverage when negotiating with the employer (the workers are not terrified of losing their job, since most of them pay a portion of their Income to something Called an “a-kasse”, which ensures That you get something like 80% of your previous sallary when you are unemploeyed). However this system Works both ways, since employers Can easily hire and fire people, so if the worker demands an outragous sallary they are easy to replace
@HolidayFan15
@HolidayFan15 3 года назад
Nobody: ... Economics explained: B E E T S
@EconomicsExplained
@EconomicsExplained 3 года назад
Bears... Battlestar Galactica
@tedarcher9120
@tedarcher9120 3 года назад
@@EconomicsExplained are widgets manufactured from beets?
@Jupiter__001_
@Jupiter__001_ 3 года назад
@@tedarcher9120 I believe they are a biproduct
@iasonkostellenos8341
@iasonkostellenos8341 3 года назад
@@EconomicsExplained how much did acorn pay for all that stock footage of beets?
@MJ-uk6lu
@MJ-uk6lu 3 года назад
Lithuanians: beet soup
@tayloreverard2039
@tayloreverard2039 3 года назад
I love how shamelessly you have taken on so many topics that directly relate to the economic changes due to the pandemic knowing that the interest hinges on the current situation, but being aware that the content is fascinating in and of itself makes it feel like totally genuine, non-opportunistic content. Keep up the good work m8
@kingjames4886
@kingjames4886 3 года назад
even with a minimum wage inflation means it needs to be increased every few years because employers aren't willing to do so on their own...
@RockerTopper-hh3ru
@RockerTopper-hh3ru 3 года назад
Funny story: I’m currently pursuing a Master’s Degree in Applied Economics and just the other day in my Applied Microeconomic Theory class, one of the quotes in the PowerPoint was “all interesting questions in Economics boil down to transaction costs.” This one concept is basically the reason why firms even exist at all, and yet for something seemingly so central to the subject matter, it rarely gets much attention in the academic literature. I’m actually thinking of doing my Master’s Thesis on something related to this. Great video BTW!
@strateeg32
@strateeg32 3 года назад
How can you even think this video is great? He did not even understand the principle of a perfect market. He confused accounting and economic profit. This is basic economics. For a master student you should have been able to see through this...
@bachpham6862
@bachpham6862 3 года назад
Applied Microeconomic Theory sounds ironic. Almost every theory in Economics assume no transaction costs and perfect access to information, when applied economics is never that.
@tiaandeswardt7741
@tiaandeswardt7741 3 года назад
@@bachpham6862 Every basic theory assumes that. So much work is done in relaxing those assumptions, through introducing frictions into the theory
@tiaandeswardt7741
@tiaandeswardt7741 3 года назад
Ronald Coase gang
@stofan
@stofan 3 года назад
.
@mynameisben123
@mynameisben123 3 года назад
If I go to a restaurant and the prices surprise me, I probably won’t walk out - but I will definitely factor this in when deciding to return, or when recommending restaurants to people I know.
@wesleyowens4089
@wesleyowens4089 2 года назад
I walk out or just order appetizers
@lajya01
@lajya01 2 года назад
@@wesleyowens4089 I hope you walk out before eating...
@wesleyowens4089
@wesleyowens4089 2 года назад
@@lajya01 well obviously.
@desbowman9497
@desbowman9497 3 года назад
The example of pricing in restaurants not mattering is clearly false, eating out is a repeated purchase for the majority of a restraints customers. When deciding where to go out a couple may well choose the more reasonably priced of the two options based on their past experience of the resultant a pricing
@asharak84
@asharak84 2 года назад
yeah it's an interesting case where the difference between repeat custom and one-off walk-ins comes into play, along with reviews and word of mouth and so on. Still an interesting talking point, though the conclusion was fairly flawed.
@mustangflight
@mustangflight 3 года назад
Love your videos! However here there is an important aspect that wasn’t discussed: I don’t anyone would be able to sell much if everyone was desperately saving to survive in a market with extreme wage volatility! I would be saving like crazy, presumably like everyone else. Recessions guaranteed for all.
@likestomeasurestuff3554
@likestomeasurestuff3554 3 года назад
"Something like a UBI should come with a 0$ minimum wage" *baited conservatives have left the chat*
@Gotwired
@Gotwired 3 года назад
*Alaska has entered the chat*
@appa609
@appa609 3 года назад
Baited progressive depending on point of view.
@goldenblacklee
@goldenblacklee 3 года назад
@@Gotwired if it wasn't for the mosquito and the high price of shipping i would move there.
@bonda_racing3579
@bonda_racing3579 3 года назад
Wait when are conservatives against ubi? ( my inner circle of friends are economically conservative and socially liberal) just saying.
@michaelsmith4904
@michaelsmith4904 3 года назад
@@goldenblacklee That *one* mosquito...
@hi117117
@hi117117 3 года назад
Hey, I just wanted to point out a bit of a fallacy in the $0 minimum wage theory. Assuming the current US system (or any system with less 'welfare' than the current US system), a $0 minimum wage would not lead to 0 unemployment, and 0 unemployment would be bad anyway. There are a few reasons for this: 1) static costs to hire an employee Much like your point on sticky prices, with complete deregulation of labor pricing, an employer would still face static costs to hire an employee. Many estimates abound, but it generally would still be many thousands of dollars, even for the simplest of roles. 2) UBI's interaction with wages As you mentioned, UBI would mean that employees would only work for wages that made sense, since they could always fall back on UBI. Employees will then not take some jobs, leading to price stickiness, leading to some unemployment. 3) Quality of life drop You mentioned that welfare was not a solution due to it causing a quality of life drop, but perfectly elastic prices would also lead to a quality of life drop as wages fall, so they wind up being different forms of the same thing. 4) People are not rational actors Many will not accept these jobs due to pride/lifestyle choices. Many people define their self worth by how they work. That means falling wages would lead to falling self worth, and many would rather maintain their self worth while being unemployed than take employment at reduced wages. This is just one example of people not being rational actors, but it is a powerful one in my opinion. As for 0 unemployment being bad, there are several factors. It causes inflation and increases the static cost of hiring an employee as companies need to work harder to bring someone over. This isn't so bad for skilled labor, but for unskilled labor it would increase the cost of hiring someone to beyond the productive worth, causing unemployment as companies aren't willing to sink the static costs, even for a $0 wage employee, and you're back with some unemployment.
@desbowman9497
@desbowman9497 3 года назад
As to point 4 Mises would say this kind of decision has psychic profits bringing people back into rational actors (although lowering the value of the term)
@buffcommie942
@buffcommie942 3 года назад
@@desbowman9497 Mises doesnt have any evidence or real world examples to prove that and is just preforming mental gymnastics go justify letting poor people die
@desbowman9497
@desbowman9497 3 года назад
@@buffcommie942 you don’t need an example to argue from first principles. People value the same things differently and only a subjective theory of value can hold true given this. Economics can be applied to the monk who values no material object because he must still economise his time to that which gives him the most psychic profit, meditating vs good deeds ect.
@iwersonsch5131
@iwersonsch5131 3 года назад
For 2), the thing about UBI is that it is universal. Employment does not replace UBI, it adds onto it. Yes, this does mean you probably need like a flat 50% tax rate to afford it without causing rapid inflation, but it also means that working for a dollar an hour would still be a profit for you. This flows into 1). If there is no need for a job to pay more than UBI, you can easily make microjobs where employees do very little for a very low wage. The less a job distracts from what somebody wants to do in their free time, the lower their cost for not just doing that instead will be, possibly less than $10 per day for some people. 3) The main issue with welfare, as mentioned, is that it's inefficient for the economy and expensive to the state. The fact that it doesn't solve the problems for employers nor employees anyway is just to point out that it doesn't improve over the base situation. And for 0 unemployment: What you described is exactly how the economy would healthily hover around 0.01% unemployment, due to people being fired or quitting when the wage gets too high or low.
@christianlibertarian5488
@christianlibertarian5488 3 года назад
A comment on your point 1). I would argue that before the pandemic, the US effectively had zero unemployment, and effectively a zero dollar minimum wage. The reported unemployment rate was 3.9%. This has been reported as the lowest that can be achieved, as people are always quitting jobs, or moving or some other issue having nothing to do with wages or demand for labor. Likewise, at $7.25/hr, the static costs of hiring are higher than the actual W2 costs. Effectively, cost of labor set by government was lower than the cost set by other factors. Based on this, I feel this is a partial confirmation of the assertion that zero minimum wage produces zero unemployment.
@RAD1111able
@RAD1111able 3 года назад
Minimum wage is just meddling with the whole "voluntary" element of contracts and hits the workers whose job is worth less than a minimum wage
@taihung7912
@taihung7912 3 года назад
incredible!!! and hardwork, Anmol Singh does alot more to make sure such level of profit is generated... its just pure natural intuition
@lee_voug8357
@lee_voug8357 3 года назад
The last time I was this early, tulips was still in demand
@Homer-OJ-Simpson
@Homer-OJ-Simpson 3 года назад
Last time I was this early, tulips hadn’t peaked yet
@lekokobloomberg-brin6576
@lekokobloomberg-brin6576 3 года назад
The economics of monopolies would be good😏
@EconomicsExplained
@EconomicsExplained 3 года назад
Oh yeah thats one that we will probably cover soon.
@saasda6255
@saasda6255 3 года назад
@@EconomicsExplained amazon??
@fullyverified7491
@fullyverified7491 3 года назад
@@EconomicsExplainedIntel over the last decade would be a good example of that. Also their downfall in recent times.
@jsheav
@jsheav 3 года назад
@@saasda6255 amazon is not really a monopoly, but it is growing to be a monopsony. EE taught me that :)
@SuperSlayer76
@SuperSlayer76 3 года назад
“When I was a child I thought quicksand would be more of a problem.” Monopolies are a lot like quicksand. On the other hand monopolies are easier to achieve with governments propping up big businesses and protecting intellectual property rights.
@Peterblack12
@Peterblack12 2 года назад
EE: Why the market is not really influenced by supply and demand. Also EE: proceeds to explain why the market *IS* governed by supply and demand.
@ryanberryyearu6435
@ryanberryyearu6435 3 года назад
“Direct then to the location where they can stick there wages” that is certainly one way to say it 😂
@InnuendoXP
@InnuendoXP 3 года назад
"A $0 minimum wage would mean a 0% unemployment rate" I dunno about that. When someone hasn't got a working background (whether in the job market or their upbringing), sometimes a $0 wage can still wind up being quite expensive for the company as it costs lots in other people's time to train them, and in worse cases, do the work required to correct their mistakes. And in the case of a small minority of some very unfortunate people, there is absolutely nothing they are capable of doing to be productive.
@nicolaspinto2927
@nicolaspinto2927 3 года назад
Training should not be viewed as a cost, but an investment. This is the same mentality that has led to the overproliferation of certificates and other credentials and the awful gating of otherwise entry level positions. Trying to reduce training costs by offloading them onto the laborer is ethically suspect at minimum, and has a strong forward negative affect on future labor. If you want to know why even janitorial jobs now often require certifications, it's because at some point someone decided that all entry level pencil pushers needed a two year degree to ensure they knew how to use Excel and email so they wouldn't have to be trained up. The death of OJT has been catastrophic for laborers up and down the ladder.
@fetchstixRHD
@fetchstixRHD 3 года назад
@@nicolaspinto2927: Definitely agree with your point in general (and despise the rise in "certificate qualifications"), though I think the issue that OP is pointing out is with "free interns": they're a cost to the company while being trained, but by the time they're qualified to a level where they're beneficial, they'll probably leave at that point (after all, their aim is to get experience to earn money!) so really they end up being a net cost overall.
@Untrimednes
@Untrimednes 3 года назад
Scandinavian countries effectively do have a minimum wage thanks to massive unions and they definitely don't have 0% unemployment because their lack of minimum wage seeing as people don't like to volunteer for slave labor. Minimum wage is absolutely needed until something like UBI or generous welfare systems ensures that people don't need to work to live, seeing as if people need to work to live and there is no minimum wage then you have the beets example in reverse; people undercutting each other until everyone starves because some money is better than no money. Zero minimum wage only works without the welfare option if there is 100% employment and no immigration which would force companies to actually compete for workers but that's unlikely to ever happen either.
@ddannydaniel3340
@ddannydaniel3340 3 года назад
they don't have a minimum wage. Workers or unions negotiate wages which is massively better than the government mandating an arbitrary minimum wage.
@JoHuGi
@JoHuGi 3 года назад
I've checked the price of every meal I've ever had since I was old enough to read.
@lance8996
@lance8996 3 года назад
Hey, love your videos. I would like to suggest you make a video on the Irish economy, it’s surprisingly interesting.
@kallmannkallmann
@kallmannkallmann 3 года назад
Saying Sweden has 0 minimal wage is kinda missleading. Evryone need to have a contract thats OK with the trade union that is relevant. Sure a trade union coud OK a 0 wage but that never happend. It´s abit like all diffrent trades have diffrent minimal wage that keeps on changing depending on economy etc.
@lazergurka-smerlin6561
@lazergurka-smerlin6561 3 года назад
I mean the thumbnail is misleading wholly because "0$ minimum wage" makes you think this guy just wants go back to the gilded age. But really he's proposing that people should have UBI + whatever amount a business is willing to offer for your work, which is significantly less crazy.
@jamesclark209
@jamesclark209 3 года назад
Those countries also have strong social safety nets and so periods of unemployment aren't as big of a deal. This makes the effective minimum wage for those countries quite high as no one would be so desperate as to work for a few dollars per hour.
@ddannydaniel3340
@ddannydaniel3340 3 года назад
there is nothing misleading there. As far as the government doesn't mandate a minimum wage. Workers or unions can negotiate wages.
@MrSmith-gb1kn
@MrSmith-gb1kn 3 года назад
About the perfect beats market. There's no supernormal profits, but there are normal profits. Normal profits are all that's required for the market to persist. If there's too many farmers in the market, supply is too high and investors are earning under normal profits; investors redirect their capital to areas with >= normal profits, causing supply to fall and profits to rise towards normal.
@bhad7787
@bhad7787 2 года назад
Yes this is the only thing i found fault in with the video. He said the profits would drop to zero, farmers would sell until they are out of stock, then the market would fail. That is not correct. Assuming rational market participants the farmers wouldnt drop their prices to zero profit levels, but instead would drop it to a level where it is still slightly worth it for their labor and inputs.
@TlalocTemporal
@TlalocTemporal 2 года назад
@@bhad7787 -- Or a few stalls that are confident in their superior stock sell at a decent loss, drive the other sellers out of the market, and then charge whatever they want.
@bhad7787
@bhad7787 2 года назад
@@TlalocTemporal This would either trigger legislation to break them up, open the door to sellers coming back in the market with normal prices, or would not be cost efficient for the sellers with superior stock unless they created some form of technology or system in which they were making the product more efficiently. Without some form of advantage they created they would not have the competitive edge to make that move
@pontoancora
@pontoancora 2 года назад
@@bhad7787 if you bring legislation, isnt a perfect market anymore
@mawhim
@mawhim 3 года назад
Zero dollar wage...'We won't exploit that' Said no company ever.
@firstwavenegativity6379
@firstwavenegativity6379 3 года назад
@Matthew Whitehead Who would work for zero dollars?
@sunnysunshine8897
@sunnysunshine8897 3 года назад
@________ Yaaay everyone's rich!!
@Loykaz
@Loykaz 3 года назад
where do you get the stock footage for all videos? some kind of company that sells this? seems to fit very well with the content of the video many times and some are quite funny
@economicsinaction
@economicsinaction 3 года назад
2:53 I knew it! I always knew EE was a kangaroo!
@toscirafanshaw9735
@toscirafanshaw9735 3 года назад
Germany didn't have a minimum wage until 2015. Why wasn't their unemployment rate 0%?
@18Jaws1989
@18Jaws1989 3 года назад
Because some people simply just don't want to work, can't work or nobody wants to hire those people. Also, the welfare state pays you your apartment and gives you money so you can buy food, water and pay other expenses. So to put it simply the mindset of some of those people is: I rather stay at home and get social welfare than to go 40 hours a week to work for the same outcome. You are even allowed to have a side job up until 400 € a month next to your social welfare.
@eror151
@eror151 3 года назад
workers rights besides minimum wage. and who would even take a job that's not profitable enough to sustain your living costs?
@danpolyukhovich5291
@danpolyukhovich5291 3 года назад
I really hope this is a bait and not a genuine question
@carlosMartinez-fy4pz
@carlosMartinez-fy4pz 3 года назад
0% unemployment is impossible. I guess he meant that unemployment would be the lower besides the NAIRU (natural rate of unemployment). There would not be "artificial" unemployment.
@leftaroundabout
@leftaroundabout 3 года назад
Perhaps more to the point: why is unemployment in Germany lower after it introduced MW than in ever the 20 years when it didn't have this?
@iampennochio
@iampennochio 3 года назад
"When was the last time you checked the price of a restaurant before you sat down?" I looked in the window at the furniture. Then i knew whatever price they had for their food was too high!
@JoshAmes1980
@JoshAmes1980 3 года назад
In the U.S. we effectively don't have a national minimum wage anymore because the number is so insanely low that nobody actually pays that little.
@atomsmasher9411
@atomsmasher9411 3 года назад
Plenty of business still pay minimum wage.
@XFizzlepop-Berrytwist
@XFizzlepop-Berrytwist 3 года назад
A lot of states are that low, and businesses do pay that low, or very close to it. Missouri is fairly recent in paying over 8$ an hour. Illinois I believe still has 7.25, and that is what the businesses there pay. A business really will only pay as little as they can Which does suck, because there is always someone willing to work for 3$ an hour. You think I’m joking, but I’m not.
@64standardtrickyness
@64standardtrickyness 3 года назад
The beet analogy doesn't work because the beet seller also values their time effort and risk and no farm would reduce their price below this!!!
@gravityhypernova
@gravityhypernova 3 года назад
If there was a corporate farm which has profits in other regions that can make up for it, they can afford to undercut all of the independents: so much that it makes the rest of the ones without such deep pockets get forced out of the beet game.
@64standardtrickyness
@64standardtrickyness 3 года назад
@@gravityhypernova Yes but that is besides the point. Actually it's precisely BECAUSE of inefficiencies entering an industry because otherwise there wouldn't be any point in taking a loss to drive a competitor out as once you tried to profit other companies would come in to challenge you.
@SumBrennus
@SumBrennus 3 года назад
The last time I valued my time and effort I lost my job, home, health, and sanity.
@64standardtrickyness
@64standardtrickyness 3 года назад
@@SumBrennus Clearly when I said value I meant just above $0. A Mcdonalds employee "values" their time and effort at minimum wage. Each beet farmer in this analogy values their time at value whatever else they can do with their time. So those who have the best alternatives to beet farming leave the system until the system balances out. *of course real world has unseen...
@SumBrennus
@SumBrennus 3 года назад
@@64standardtrickyness Alas, that was the last time I valued my labor at $0. I tried to pay off a bill by trying to get them to hire me to work for them to pay it off...
@Hrafnskald
@Hrafnskald 3 года назад
This video makes a lot of assumptions that do not apply to the American labor market. 59% of Americans are hourly, without a set salary. Most states in the US have at will employment, where there is no contract. Businesses can fire anyone at any time, and for many, there is no social safety net. Beyond that, the zero dollar minimum wage assumes infinite supply. Real world economics shows that this is not true: when the benefits of work are low, people leave the workforce rather than work for less that their time is worth. People pushed to the brink of poverty by such a program (which is regularly advocated by the Republican Party in the US without any UBI or welfare support), will turn on those who make the change. Politicians will be voted out, and any employer willing to mistreat their workers in this way will be targeted. The French Revolution was the direct result of the rich trying to squeeze the poor through a Let Them Eat Cake mentality. The Russian Revolution, and Communism, came from the same. This kind of dangerous theory, if adopted, will lead to a violent backlash.
@CosmicValkyrie
@CosmicValkyrie 3 года назад
Just wanted to say that there are a lot of markets other than america so some of your critiques don't really stick. I don't think everyone thinks the us is the default country on the internet anymore right?
@Hrafnskald
@Hrafnskald 3 года назад
@@CosmicValkyrie The second half of my critique is global: workers will not turn out for jobs that do not pay, and any attempt to eliminate meaningful salaries without replacing the income will lead to a backlash by workers and voters, who outnumber employers.
@CosmicValkyrie
@CosmicValkyrie 3 года назад
@@Hrafnskald oh, i don't disagree with that bit. That's just inertia. People don't like big changes even if they will mostly benefit from it.
@Hrafnskald
@Hrafnskald 3 года назад
@@CosmicValkyrie Workers being paid low wages is not a benefit.
@CosmicValkyrie
@CosmicValkyrie 3 года назад
@@Hrafnskald well i had other situations in mind when i meant beneficial changes to economy. But depending on the economic conditions, wage cuts might be beneficial although it cant be too much.
@yevgeniygrechka6431
@yevgeniygrechka6431 2 года назад
4:44 This is incorrect. In the theoretical case of a beet market adhering to the perfect market conditions that are laid out, the price would not drop to the "at cost price", it would drop to: "at cost + opportunity cost price", and since everyone has different opportunity costs, the last beet supplier standing is one who has the least opportunity cost, or in other words, one who is most specialized in producing beets. Furthermore, if we assume that everyone has the same opportunity costs, these opportunity costs are not zero, so the suppliers will continue to make profits selling their beets. So the beet production will in fact go on under these conditions.
@lukeskyrunner95
@lukeskyrunner95 2 года назад
This EE guy has all sorts of misconceptions of free market principles. I’ve stopped watching his videos because they made me too frustrated. He’s a sophist.
@bengoacher4455
@bengoacher4455 3 года назад
Last time i was this early I didn't live in a centrally controlled economy
@fatpotatoe6039
@fatpotatoe6039 3 года назад
@Rappa Kalja You
@colto2312
@colto2312 3 года назад
this
@TheDhammaHub
@TheDhammaHub 3 года назад
We could also try out Milton Friedmans idea of a "negative income tax"!
@quintessenceSL
@quintessenceSL 3 года назад
Probably the best schema I've read for dipping a toe into the UBI pool was massively expanding the EIC. Doesn't get you the lessened overhead of UBI though.
@SangoProductions213
@SangoProductions213 3 года назад
@@quintessenceSL It was already tried in the US though, to less than stellar results.
@SangoProductions213
@SangoProductions213 3 года назад
@MrFishbone111 lol. Yeah. 50 Cent coming out and saying he didn't want to be 20Cent was pretty funny.
@quintessenceSL
@quintessenceSL 3 года назад
@@SangoProductions213 "These EITC dollars had a significant impact on the lives and communities of the nation's lowest-paid working people largely repaying any payroll taxes they may have paid. The EITC is one of the most effective social welfare programs in the United States.[11] The Census Bureau, using an alternative calculation of poverty, found that EITC lifted 5.4 million above the poverty line in 2010."
@TheDhammaHub
@TheDhammaHub 3 года назад
@Brian Abisdid The same way you pay for any welfare system with the difference that people have the opportunity to acquire skills since they have to work
@Think_Inc
@Think_Inc 3 года назад
I only found this channel a month ago and I’m already addicted.
@robertaylor9218
@robertaylor9218 3 года назад
I was waiting for the caveats. Yes there are conditions where a minimum wage of $0 doesn’t make everything monumentally worse. Those require either a robust support system for citizens and/or mandated collective bargaining that provide an industry (or regional) specific minimum wage.
@anteeko
@anteeko 2 года назад
Singapore and sweden have no minimum wage.. Singapore is not what you would call a union country yet wage are very high
@alexgallagher9759
@alexgallagher9759 2 года назад
@@anteeko singapore has a very high level of income inequality. The top wages are high.
@cianoconnor6081
@cianoconnor6081 3 года назад
This is much more entertaining if you replace the word “farmer” with “rapper”.
@MysterCannabis
@MysterCannabis 3 года назад
Haha most of them do make beats for absolutely no money
@mwam1985
@mwam1985 3 года назад
Up next... The economics of stock footage!
@gavinyeomans
@gavinyeomans 2 года назад
The main reason they don't need a minimum wage in the Nordic countries is strong union membership. Over 2/3 of workers are in unions in most of these countries, giving them enormous bargaining power to set their wages with employers without needed the govt to enforce minimum wages. Union membership in the US is extremely low in contrast (and it's harder to form a union) so workers have much less power bargaining.
@timsavvy
@timsavvy 3 года назад
Hi @Economics Explained, I wish Acorns was available outside the US like eToro. Thanks! :)
@harktheheral
@harktheheral 3 года назад
"Check the price of a nice restaurant before you sit down?" Literally always. Depending on the occasion when going out, my wife and I will set search filters on Yelp, including price bands, and then we'll preview the menu and see what the options are and prices. We're willing to pay for a given range, or say "we still want to try this" or what have you, but we know in advance what we're going for and are interested in. Guess we're weird.
@pegoe7784
@pegoe7784 Год назад
You aint going to a nice high-end restaurant, brokie, lets be honest.
@Luredreier
@Luredreier 3 года назад
Regarding the lack of minimum wage in Norway. That's a truth with modifications... It's still illegal to pay salaries significantly smaller then the ones negotiated for in a sector. So for instance people working in a hotel or restaurant might benefit from lower wages right now rather then losing their job and companies might be desperate for cheaper workers and they will indeed be cheaper then in other sectors like say programming jobs not as impacted by the virus. So the unions for hotel workers etc will agree to lower wages in return for other concessions, be they higher pensions or less work hours/time off/vacation or even controlling votes in the board of directors of the company. The company stays afloat. But lets say that a company finds someone cheaper available? Someone new trying to get hired to a hotel job might want to undercut the others available but there's a limit to how low the hotel can go without breaking the law. Not a fixed minimum wage set by the government or the same as in a totally different industry, but rather a fixed percentage of the negotiated wage in that particular industry. So hiring someone for 5% or even 10% less wage then those that's unionized may be possible. But if you find someone from another country moving in willing to take 25% less then you still have to pay significantly more then that because paying them that sum *would* be breaking the law. Essential we *do* have a minimum wage. It's just that companies and unions takes part in setting that minimum wages together with the government only enforcing it and helping out if there's a stale mate or if too much harm comes to society at large. (So nurses may go on strike but only if there's zero doubt that no lives are at risk)
@kirstyjjamieson
@kirstyjjamieson 3 года назад
Every time before even booking a table at a restaurant I check their menu and prices. I suspect I’m not alone or even that unusual.
@minipiman
@minipiman 3 года назад
Is anyone else shocked by the statement that if perfect information in the "beet market" would bring prices so low that no beets would be produced? Prices would stabilize with razor thin profits so only the most efficient beet producers would survive. Maybe less beets would be produced, or maybe the efficient beet producers would take-over the competition farms, but efficient markets dont make products dissappear! Im reconsidering many things I thought I had learned in this channel after such statement honestly.
@BMXaster
@BMXaster 3 года назад
That passive agressive surprised "Hmmm" at the end got me hahaha
@incentiverse
@incentiverse 3 года назад
Dwight Schrute watching this video : "write that down, WRITE THAT DOWN"
@zigma642
@zigma642 3 года назад
Its worth noting that in the perfectly competitive market model that economic profits go to zero, not necessarily normal or accounting profits.
@martinyt4465
@martinyt4465 3 года назад
Question. It is only US based Acorns? Or can I set up an account for investment from anywhere?
@yesid17
@yesid17 3 года назад
lol that bus at 11:46
@economicsinaction
@economicsinaction 3 года назад
Well spotted!
@_eurocat_
@_eurocat_ 3 года назад
@@economicsinaction hippity hoppity trafic is now my property
@georgenelson1033
@georgenelson1033 3 года назад
Investing make up the top notch hemisphere of the wealth. That's the more reason one should save and invest to secure profit and ensure success
@philipjames9034
@philipjames9034 3 года назад
You’re right investing now should be at the top of every wise individuals list because in few years you'll be ecstatic with the decision you made now
@biaheza3677
@biaheza3677 3 года назад
True💯
@biaheza3677
@biaheza3677 3 года назад
For me Investments like stock and forex has become very profitable and very good options in securing a better financial life that's where I belong and survive from
@kellymelissa8909
@kellymelissa8909 3 года назад
You don’t need someone to tell you how to invest your coins, you can also make researches or try doing it yourself
@johnnymilky585
@johnnymilky585 3 года назад
Hey someone talked about researching and trading without professional guide.. huh I laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
@kostaskolkaitso2433
@kostaskolkaitso2433 3 года назад
I study economics and I love this side of youtube thanks ee for those amazing videos
@GrantCoultrupProductions
@GrantCoultrupProductions 2 года назад
did you really feature a scene from the DENNIS system? 😅 amazing
@GhostEmblem
@GhostEmblem 3 года назад
That argument against perfect markets has so many holes -_-
@adamsfusion
@adamsfusion 3 года назад
I'm not an economist, care to explain a bit more?
@blimpgaming8534
@blimpgaming8534 3 года назад
Ye please elaborate am interested
@carlosMartinez-fy4pz
@carlosMartinez-fy4pz 3 года назад
@@blimpgaming8534 @avfusion His example is about 100 farmers that are competing for customers, so they will be willing to lower prices in order to get more customers. So, the cost of being a farmer would not be profitable in the long run; making everyone poorer The problem with that example, is believing farmers just compete in prices. But he himself says later that you may be incline to go to X farmer instead of Y farmer, in order to get more nutritious beans, even when they could have higher prices. So, he is admitting that those farmers not only compete in prices, but in product, services, quality, etc... His example shows the limit of perfect markets competing under just one variable (which no market would be like), not perfect markets themselves.
@blimpgaming8534
@blimpgaming8534 3 года назад
@@carlosMartinez-fy4pz Thanks
@GhostEmblem
@GhostEmblem 3 года назад
@@blimpgaming8534 Well even assuming that the products are exactly the same down to the nutrional value his example ignores ignores price equilibrium, supply doesnt keep reducing. If demand remains the same while the suppliers reduce there wont be enough supply to satisfy demand and people will start paying more for access. It ignores cost of production, people wont reduce the price below the production cost. It also treats supply as infinite, each supplier can only produce so much else the basic economic problem would be solved and the example would be worthless for economic demonstration. It assumes that suppliers will undercut eachother instead of matching prices. There are many things wrong with it and I'm sure others could point out more.
@spasheridan
@spasheridan 3 года назад
It's curious that we see an argument to lower wages when times are bad, where's the argument for wages to rise as times were good? If it's good to cut wages when cash flow is poor it's equally good to raise wages when cash flow is high. The argument here is just "how much can we cut wages so capital can always make their nut"
@stillbuyvhs
@stillbuyvhs 3 года назад
@Dan Ryan Because the company will go bankrupt, & then you won't have a job at all?
@techguy651
@techguy651 2 года назад
“Companies will pay a premium for workers of higher quality.” Hahahahaha! That’s funnier than all those jokes about grad students being on the bottom rung of society.
@jesdadotcom
@jesdadotcom 2 года назад
It's absolutely true if you're actually great at what you do and keep yourself available to the labor market. If you believe sticking with one company forever will achieve this, then no.
@MrHocotateFreight
@MrHocotateFreight 2 года назад
If you're like me in a part time job, then no wonder your views of pay are cynical op. But if you have a real career and your actually proper qualified, a company will look at your lessers before you when firing
@skyranger1366
@skyranger1366 2 года назад
@@MrHocotateFreight And then offshore your job to China because slave labor is cheaper. Companies are like crocodiles you can feed your coworkers to it hoping it eats you last. But eventually you run out of people to sacrifice and then you are the one being devoured.
@skyranger1366
@skyranger1366 2 года назад
@@roamingthereal4060 Conversely why would I ever work for a company that doesn't think I'm worth being paid a living wage.
@Stszelec01
@Stszelec01 2 года назад
They don't pay premium for quality workers they can eat dirt they only pay premium for workers that are hard to replace
@Articulate99
@Articulate99 11 месяцев назад
Always interesting, thank you.
@bastian7323
@bastian7323 3 года назад
17:22 Germany also didn't have a minimum wage until a few years ago and it literally didn't hurt anyone when it was introduced.
@witoldschwenke9492
@witoldschwenke9492 2 года назад
that's utter bullshit!! incredible that you'd think that. It didn't "hurt" anyone, you've got to be kidding me. No all they did was either close their business and numerous people had to, or pretend they pay minimum wage without actually paying it and that's what the rest are doing. How do i know this? my dad works together with several people who own various businesses, a lot of them cut the official work hours and pay minimum wage but the employees just work for free for a few hours or they resort to completely cutting out the government.. ..
@tedarcher9120
@tedarcher9120 3 года назад
There is no zero dollar zero unemployement. People just won't leave their home for 1 dollar an hour
@sinenominee1454
@sinenominee1454 3 года назад
People would pay more than 1$ an hour in order to attract skilled workers. I think minimum wage is a good idea to make sure people can not be exploited but the more you pay the more efficient you become therefore reducing average costs.
@jwfcp
@jwfcp 3 года назад
@@sinenominee1454 The incentive for efficiency is always there, the question is whether taxpayers or consumers should be burdened with this expense (hint one of them is called communism).
@tedarcher9120
@tedarcher9120 3 года назад
@@sinenominee1454 I know, but the idea that 0$ minimum wage = 0 unemployement is false. People won't work for less than they spend to get to work
@sor3999
@sor3999 3 года назад
Just like how businesses go out of business when the product they're selling costs more than people are willing to pay. And if they sell at a loss then there is simply no supplier. With no minimum wage, it's the same thing except people die instead of corporations dying, and that's the kind of "my way or the highway" leverage crass capitalists love. We tried no minimum wage before. It was before we instituted minimum wage.
@matthewwypyszinski4873
@matthewwypyszinski4873 3 года назад
The problem with a lack of minimum wage is the habit of companies in America to resist competition as hard as possible. The idea that a business couldn't pay someone .50/day because another business will offer more is predicated in the idea that the two businesses arnt working together to keep wages down (which they do even if they arnt supposed to) and that there is another business to compete with in general. A LOT of industries in the US are effectively free of competition.
@jakelilevjen9766
@jakelilevjen9766 3 года назад
Interesting thoughts. Keep them coming!
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