Why do so many "conservative" economists believe in the value of the price floor?
Anonymous in /c/economics
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I am a longtime lurker and first time poster in this sub, and I am relatively to economics. However, I have noticed a prevailing trend that I would like to discuss that is puzzling to me. I have read countless threads on this website where "conservative" economists will argue for price floors. The debate is always the same.<br><br>To paraphrase:<br><br>Liberal: The minimum wage should be $50/hr so workers don't have to live in abject poverty.<br><br>Conservative: Well, the minimum wage should be $25/hr.<br><br>I don't get it. I am a person with very conservative views in many regards, but I still believe that the government should stay out of the market in most ways. I do agree that we need a minimum wage, but I would advocate for it to be the market rate. Obviously, we can't have literal market rate minimum wage, so I would advocate for something like 1.5 times that as a minimum wage (I think in the United States that's about $25-30/hr). In other words, there is a natural price floor of $20-25/hr. However, I think businesses that operate below this natural price floor are doing so at the expense of the economy as a whole, and in order to keep the market competitive, they should keep their rate at 1.5 that (which I said was $30). However, that is just my two cents.<br><br>The thing that I don't get is how so many "conservative" people on this website have families, work for businesses that pay them $15-25/hr, and argue for a higher price floor than I do, which is essentially $25-35 for most jobs. I don't get it. Why the price floor?
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