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The Benefits of the Minimum Wage Laws


# of Words: 292

As free-market economists I'm not much into minimum wage legislation, in fact I'm rather against them. However as I watch what's going on in China right now, with the protests and strikes from the labor at the overseas production firms which are in their own country, I see that something has to be done. In China you are not permitted to go on strike at a Chinese company, and even though there are problems, they are not publicized because the Chinese government doesn't want that in their websites.

Nonetheless, it is my contention that Henry Ford was correct in his thinking and strategy as he began to mass produce Model T's.

He paid the labor money so that they can manage to get Ford automobiles, which makes sense. And although I'm not in favor at all of minimum wage legislation, in China's case - when they don't do something they will find themselves within a world of harm and worker riots and protests. Industrial Revolutions have bicycles, all which has yet to play out in China, don't kid yourself, it is inevitable, and they've done absolutely very little to knock it off or lessen its potential effects, it is a time bomb for their economy and national equilibrium. We've already seen that several Chinese businesses are investing in countries like Egypt where there will likely be cheaper labor ($1 per day still) when they could no longer afford to cover the new labor prices in China. It seems that lots of the factories are looking for the cheapest cost labor, but at any point they need to pay people what they're worth, and they cannot continue to drive slave labor. Things are changing in China, China is rising up. Please consider all this.


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