Why not raise the minimum wage to $100/hr?
IANAEconomist, but I 'll take a shot at explaining it:
- Most easy to get jobs inevitably pay at or slightly above minimum wage, so this will represent a large portion of the population and the job pool.
- Our goal is to maximize the happiness of the population which will be composed largely of people who hold these jobs.
- Happiness that altering minimum wage will be something like: free_time*income in some sort of units that probably work out to 120hours*$15/hour is awesome.
When we increase minimum wage, workers make more money for the hours they put in, but hours available begin decreasing as businesses can't afford as much labor:
At $100 (or probably even $25) per hour, no business can afford to pay that, free_time*income=doesn't_matter*0=0=unhappy.
Seriously, why can't anyone answer that question?
Because it seems so obvious, that only the nerdiest among the news for nerds crowd would put math to it.
The other reason that people avoid the question is that the other side works out equally bad, but they're concerned that you aren't considering it.
When Minimum wage decreases, people have to put in more hours to make a living, because most easy to get jobs inevitably pay at or slightly above minimum wage, but more jobs and hours become available since businesses can afford them.
Set minimum wage to zero and we are back to child laborers paid in script: free_time*income=0*0=0=unhappy.
You can't even define a "living wage". Put a number to that
Somewhere in this curve is a happiness maximum. IANAE and I've never visited Seatle, so I can't give you a number on a "livable wage", but I hear the cost of living is huge and the weather is so dismal that not only is it impossible to be homeless, but people suffer from year round seasonal affect disorder. I wont move there for less than $60/hour and under 50hours/week.