There's this one guy out there, Peter Schiff, and he aired on Joe Rogan a while back. One part of the podcast really caught my attention, and it was when Schiff said that the minimum wage should be abolished.
Without making this question subjective, I'll provide an overview of his arguments, however, that's where I need some help since I'm not so sure on how they stack up to the real world.
Here's the arguments he made:
1. Fixes unemployment rate
A company is not going to hire someone for 15 dollars an hour (or whatever the minimum wage is) if their skill level is only worth 5/h. The company will lose 10/h if they hire someone like that! So instead, reduce the minimum wage so that company's can now pay people 3/h, opening the market for everyone.
Think of a wage as a ladder. It starts at zero, making it accessible for everyone to climb. However, a minimum wage raises the ladder, making it unaccessible to people that don't have good skills. By abolishing the minimum wage, the ladder will be at the ground, so everyone can climb up.
2. Provides an alternative to college/university
If you don't go to college for whatever reason, then your skill level is probably not above the minimum wage. This will make it extremely difficult to find a job. However, with the minimum wage, you can start at the bottom, making 2/h, and work your way up. Even if it's a simple job like moving boxes, you still learn discipline.
3. A minimum wage limits the ability to sell labour
If you can only worth 5/h, you'll never get a job with a minimum wage of 15/h. You'll actually lose money for the company. However, with the abolishment of the minimum wage, then people can sell their labour based on whatever skill their at.
4. Brings jobs back to us
Most jobs will soon be automated, or moved overseas where it's cheaper (India or someplace). However, without a minimum wage, these jobs will start migrating back to us, the original country.
This will create thousands of jobs and create new opportunities for people.
There, that should be Schiff's view on things in chronological order if I did everything right.
Now what I'm wondering is if these arguments actually stack up against the real world.
However, I do have some specific questions:
1. Will this fix unemployment?
2. Would competition naturally raise, prices? And by how much?
3. Whould this bring jobs back to the country?
Anything would help. Thanks.