What would happen if there were no minimum wage laws in the United States? Could employers pay whatever they wanted to? Explain. 2.without minimum wage laws, would everyone be paid extremely low wages

Answer 1

To answer this question, one must look at both perspectives of business owners and consumers.

Without minimum wage laws, items would be cheaper in stores as business owners are able to provide items at a lower cost since they do not have as much invested into each item. However, this would have to be necessary since people would not be making as much. On the contrary, if people are constantly getting paid more then the production cost increases which causes items to be marked up more. This all goes into play with inflation.

Business owners would almost have a minimum wage anyways because people are only gonna work for so little. No one is going to fork out 40-60 hours a week and not be able to pay the bills. This would lead pay to be based solely off of available laborers. If many laborers were ready to work then the price for working would be lower rather than if there were few workers available to work.