Should the minimum wage be reduced?

white apples

Below are a selection of minimum wage rates per month from across Europe. We have the 2nd highest. This info was taken from http://www.fedee.com/minwage.html

Should minimum wage be reduced to encourage competitiveness and create more jobs? Your thoughts on this and the implications it will have for dole payments etc.

These amounts are per month

Luxembourg 1,641.00
Ireland 1,499.33
Belguim 1,387.49
Netherlands 1,356.60
France 1,321.02
Isle Of Man 1,185.28
Jersey 1,145.97
UK 1,131.95
Austria 1,000.00
Andorra 897.87
Cyprus 840.00
Greece 701.00
Malta 634.75
Spain 624.00
Portugal 450.00

Flamed Diving

No, but their tax-exempt status should be removed.

_Nuno_

white apples wrote: »

Below are a selection of minimum wage rates per month from across Europe. We have the 2nd highest. This info was taken from http://www.fedee.com/minwage.html

Should minimum wage be reduced to encourage competitiveness and create more jobs? Your thoughts on this and the implications it will have for dole payments etc.

These amounts are per month

Luxembourg 1,641.00
Ireland 1,499.33
Belguim 1,387.49
Netherlands 1,356.60
France 1,321.02
Isle Of Man 1,185.28
Jersey 1,145.97
UK 1,131.95
Austria 1,000.00
Andorra 897.87
Cyprus 840.00
Greece 701.00
Malta 634.75
Spain 624.00
Portugal 450.00

Just one remark. Portugal's wages are paid 14 times a month (two salaries in July and December) so the actual figure for the minimum salary is 525 per month.

Not really relevant for the discussion, but just to clear that up.

Spain I think has 13, and France probably 14 as well.

1huge1

Well I definitely think there is cause for a reduction in the minimun wage but at the very least there should be no increase for 2 years

gruck

_Nuno_ wrote: »

Portugal's wages are paid 14 times a month

Time to move to Portugal

eamonnm79

Where are the figures for sweeden and denmark?
We are not comparing like with like. In the UK they have NHS for example. In france they have free child care etc etc.
Unless some body tries to give a value to the services each country provides people on min wage than this is a wasted disjointed biased exersize.

Tricity Bendix

Yes. Small businesses are being hammered. Instead of being able to cut pay across the board by, say, 5%, they are having to cut pay to the upper levels of staff by 10%+. Often this can result in there being no advantage to being promoted, as you'll be on nearly the same money for far more responsibility. I'm a big fan of the minimum wage, but in an era of deprecation and falling living standards, I think it needs to be revised downwards, rather than constantly being increased, as is the case currently.

Time Magazine

The convexity of the utility function that induces inequality-averse cat says no.

But I'll look at some numbers this week with an open mind and report back.

Tricity Bendix

Your cat will be pleased that income inequality is down this year. The left must be delighted.

Dravokivich

Er... so their min wage may be less in 13 other countries but, how much does it cost to live there?

Thats something that needs to be taken into account. The minimum wage is meant to reflect the costs and expense for living.

you think its selfish to get some form of mediocre pay to have a mediorce standard of living?

If you really feel up to having that, calculate roughly how you'll do with the min wage that's been stated.

Just so I ain't on a loose end calling bluff:

1,499.33
- 575 in Rent
- 350 in food
- 250 Avg in bills (NTL / ESB / GAS / Vodafone)
- 150 in Transportation (Bus / Train)
- 100 in Hobbies

Which would in turn leave me with 124 for "Just in case".

And I'm a guy in my mid twenties sharing an apartment. What if I had to raise a family on that? Min wage hardly covers my requirements at all.

Suggesting to move back with the parents is not a valid arguement as that will in turn end up disguising the true nature of putting together expenses. At home I wouldn't have much responsiblity on Bills / Food / Rent.

@ White Apples:
How would it work out for yourself?

@ Flaiming Diving:
Take tax exemption from this? Where? Do you really think you can go through on that wage with 150 taken out on tax a month as well?

- Drav!

eamonnm79

Flamed Diving wrote: »

No, but their tax-exempt status should be removed.

Not any more everyone with income over 15k pays the levy.

grizzly

Yes, we need to reduce the minimum wage to become competitive and stop bleeding away jobs. The cost of living will correct downwards correspondingly.

Hogzy

Cost of living is decreasing so should minimum wage but it should mirror the perceived cost of living NOW

jimmycrackcorm

It's more productive to freeze current minimum wage levels until we are competitive - might take longer than simply cutting now but cuts, like taxation increases would have a negative effect.

_Nuno_

gruck wrote: »

Time to move to Portugal

Sorry, I meant 14 times a year

pieye

Attacking the minimum wage, with out critiquing the factors that make the cost of living in this country so high for these workers, is a simplistic and irresponsible argument.

Time Magazine

pieye wrote: »

Attacking the minimum wage, with out critiquing the factors that make the cost of living in this country so high for these workers, is a simplistic and irresponsible argument.

I agree. Thankfully that's not what's happening. For example.

eamonnm79

The Economist wrote: »

I agree. Thankfully that's not what's happening. For example.

I think he meant this thread.