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Originally Posted by FeelMyTube
Yes it would. This is textbook microeconomics (taught in evey MBA / business class).
There's always someone willing to work for $1 less than minimum wage (the alternative is unemplyment).
Minimum wage benefits those who get it at the expense of the employees that would be willing to work for less and can't find work and the employers that need cheaper labor but cannot hire at less than minimum wage.
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But is that a good thing?
IMHO this is already what is wrong in this world. Just a few hours ago I saw a job posting for 15 people for less then $1 an hour on oDesk. That is so very bad. IMHO that is almost the same a scamming people.
In the long run the unemployment would only shift from one part of the world to another. Also, lowering the wages will not magically create new jobs. If a task cost 100 man-hours then that will not change if the wages change. It's still a 100 man-hour job. It's just cheaper.