I would call it an appeal to reality.
Scott Gilroy
21

Is this lady a victim? She agreed to work at a certain wage and she has continued to work at that wage, even though she could quit at any time. Apparently she believes that her labor is only worth that much in an unfettered market. That is her own self appraisal.

The US has a large surplus of low skilled not very productive people and we continue to import more. I don’t know what to do about that. Maybe some sort of government funded basic income would work, but that would have its problems, too. It would involve dramatically raising taxes on somebody.

The problem with the minimum wage is that it is a price floor, and a price floor creates surplus — a surplus of labor is called unemployment. In the past, minimum wage increases have come only after most low skilled jobs already paid more than the proposed minimum. IOW, the minimum wage lagged the market wage. So there was almost no employment effect.

But a dramatic increase, such as near doubling the minimum to $15/hr would increase wages not only for the very lowest paid, but also all through the workforce. Such a dramatic increase in labor costs would force employers to cut jobs and raise prices.

That is regrettable but it is true.

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