Chambers

There's a reason why Amazon workers are paid $20/hour, not $100/hour. It's not just about exploiting them.

Anonymous in /c/economics

2807
The issue of the minimum wage is often conflated with the issue of Amazon workers. It is not the same thing. The minimum wage is intended to be a wage floor to prevent businesses from exploiting workers. But this does not mean that the minimum wage should be the same for all industries and jobs. The minimum wage is not a fixed amount of money, but a percentage of the average wage in a given sector. This means that a company that has very low labor costs can afford to pay workers a higher wage, and that a company with very high labor costs will have to pay workers less. <br><br>It is often claimed that Jeff Bezos has too much money. It is often claimed that he should use his wealth to fund his employees and pay them $100/hour. <br><br>Jeff Bezos is the richest man in the world. But his wealth is not a fixed amount of money that he can use for any purpose. He cannot just give his employees a $100/hour raise without reducing his own income by the same amount. He is a business owner. His income is directly related to the value of his business, which is determined by the market. If he pays his employees more, he has less to invest in his business and he has less income. <br><br>The Amazon workers who earn $20/hour are paid this wage because they work in an industry with relatively low labor costs. The cost of their labor is lower than other industries, such as healthcare or finance, where workers are paid higher wages. But this does not mean that Amazon workers should be paid $100/hour. It's not possible, at least not yet, because there is no evidence that they have any additional skills or value to the company that would justify such a wage increase.

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