Our host, Shane, suggested that it was time to discuss repealing the minimum wage. If you are unskilled labor, you're probably not worth whatever minimum wage pays plus government mandated benefits. No business is going to hire people and lose money on them, hence the lack of jobs. The question was whether the desire for work would overcome the desire for government benefits and the entitlement mentality.
I would argue that in the end, it won't matter. Our upcoming fiscal crises will eliminate the minimum wage out of necessity. Dig this story from Spain.
Over the past 35 years, The Agudana, one of the largest slaughter houses in Lleida, has gone through heavy debts, change of management and even fires. But now, reports have confirmed that the Agudana slaughterhouse is lined up for a closure that will lead to the loss of 55 jobs.
The Cooperativa Copeman Meat Slaughterhouse, better known as Agudana, made the announcement after facing serious problems of accumulated debts and liquidity issues, all the more; the company was forced to close. Over 55 workers are going to be left on the streets because of the technical insolvency issues of the slaughterhouse.Here you not only have a company that can't cover its costs, you've got a company that produces food not being able to cover its costs. The science is settled: eating is a pretty basic need. The regulatory state will be dismantled when it becomes obvious that enforcing regulations can no longer be supported by reality. Spain can't pay for its entitlement programs while its regulations are forcing businesses central to daily life to go under. That can't go on forever.
Of course, if protestors sit in the street and wave their hands, that changes everything.