Is minimum wage really a bad idea?

To a capitalist, of cos it is bad!

to a society that cares, it is a necessity!

it applies to usually the lower type of work that is still nt paid according to a min.living wage standard yet.....

it is not just abt min. Wage but a wage decent enough for living (esp in a high rising/inflation cost sg) w dignity!! It is cruel to humanity if the poor are forever stuck in the vicious cycle of being poor and underpriviledged gen after generations!

did u guys reflect after viewing this video??! https://youtu.be/R5baXgqSdaI​​​

No. Minimum wage is necessary to protect the lower wage earners. Capitalism is built on the basis of exploitation of the weak and poor in order to satisfy the greed of the powerful top level. There is no such thing as a free market, the market is always under the control of the powerful top level which, without any laws such as minimum wage, they will easily abuse the system and exploit the weak and poor, resulting in a very wide income gap.

Setting a minimum wage will of course not be enough to stop such exploitation of a capitalist system but is a necessary first step in the right direction.

Minimum wage is bad because... Once you set minimum wage, the salaries of more jobs will be set to the minimum wage, instead of market. Companies will be focusing on asking why your job shouldn't be at minimum wage.

So while you are pushing the bar up for the people at the bottom, you are also simultaneously pushing a lot of people down to that bar.

Once minimum wage is set, you will see those who are paid at minimum wage struggle with the same pay package year after year, because companies are abiding to the law, and paying the legal minimum - this leads to every employer setting recruitments at this minimum because it is built into everyone's expectations.

Minimum wage as a concept, is a really great way to protect the needy and ensure that minimum cost of living is being provided for.

However, the reason why minimum wages is a bad idea is due to several reasons:

1. Higher tax for everyone(to provide for social welfare and min. Wage)

2. Reduce productivity (People will be less motivated to work harder since they can just enjoy the minimum wage even if they slack)

3. Dwindling economy in the long run (as a result of a fall in productivity)

4. Everyone becomes poorer (brain drain + lower salary + lack of economic activity)

Case studies around the world such as countries in Europe whereby minimum wage are provided have shown that it leads to reduced productivity levels throughout the entire economy and higher tax margin on middle class and upper class as a result. This then lead on to the phenomenon of "brain-drain" as the more capable people will want to go somewhere else with a more advantageous tax margin.

There is a reason why higher net worth individuals from the Western World would move to Singapore simply because of the lower tax margin incurred on them compared to their country.

Singapore being a Capitalist state, is built on the foundation of meritocracy so the more effort you put in, the more rewards you reap. Minimum wage is more tilted towards Socialism and will become popular when the economy is bad for a prolonged period of time.

Conclusion: Min. Wage is generally a bad idea in Singapore's context due to the nature of our economy (Capitalist State) and by having a minimum wage you will have to trade off economic growth and productivty for more social security.

Opportunity cost in the long run is substantial if local talents were to migrate somewhere else with better opportunities and lower tax brackets if minimum wage were to be put in place.

Just my two cents. Opinion and views based on a capitalist