If people don't get enough from employers, who pays ?
I have a couple of problems with this, and will do my best to explain my reaction, but am not entirely happy with clarity.
I think you're making a static view of the world, and are not considering the dynamic of the system. Legislation like the minimum wage has an effect on the economic systems that you apply it to. It changes the numer and nature of employers, and the number and nature of employees.
It's impossible to measure the opportunity cost, but we can talk about the sort of costs we'll be taking. There are potential businesses that would exist if they could pay less than they do. This would create greater economic activity in general, and skill development. Both of these things which would feed back into stronger businesses and ultimately demand for labour, higher wages, lower tax.
The Internet should offer us awesome opportunities to reduce knowledge asymetry coming from labour being misallocated, or taken advantage of. Consider a version of linked-in that was oriented around networks that tried to offer and make contracts. You could see who worked with who, and then the contracts that were on offer. I doubt Linked-in will go in this direction - it would piss off recruiters. It'll happen though.
Since when did a living wage for a day's work
become a controversial issue ?
Outside of America, questioning this is one of those "things you can't say".
A politician who made these arguments in I'm putting is remarkable to survive at all, and definitely hated for life - Thatcher is the obvious example. The last change of power in Australia was caused by exactly these issues. Chile is lining up to have it out on these lines in the next year and will be interesting to watch.
The caricature of the right wing leader who's out to screw the workers to help the big end of town is like honey to the mindset of people who see themselves as victims, and who don't recognise that they are in control of their own fate.
There's always a labour movement party (run by teachers, lawyers and party workers) in there reminding people that they are victims, pushing those images, and suckling on the milk of votes that this easy play delivers.
Except in American - a country where labour flexibility and entreprenerialism are central to the culture.
Another evil I forgot to mention about minimum wage earier is the trap effect. Imagine your effective wage is worth less than minimum wage, but you've managed to land a dead-end job making minimum wage. Now you have a disincentive to refocus on something that would make you more valuable than minimum wage.
That pattern repeats at other levels of the economy. You sometimes see areas of government, banks or protected "national champion" businesses dominated by people who don't do much but also don't make trouble. They're keeping a low profile because the employer is able to pay too much because of the luxury of its legislative protections. Left unchecked, the good staff (who care about what they do) gradually leave for other gigs, and you get overrun by pretenders.