Minimum wage for domestic workers increased

[Kloofvreter]

But most domestic workers do have kids or have to send money home to care for the rest of the family.

Unfortunately the people who can least afford children, usually has a few

 

[BBSA]

Yes, minimum wage laws raise unemployment, that's exactly what they do; this is a very well-established economic principle. It also raises the entry barrier threshold for poor entrepreneurs, thus effectively favoring large corporates and 'keeping the poor poor'; it also helps keep the cost of goods artificially high (which again favors big corporates and holds back competition from smaller players). People also complain about the cost of living and how minimum wage is still very low, but minimum wage factors into the cost of everything you purchase; were it not for minimum wage, everything would be cheaper, so you'd be able to afford more for less. Cf. Malaysia for an example; extremely low unemployment, but things like food and cellphones are extremely cheap so even the poor can afford everything they need.

Very good post, now go and sell that to the ANC.

 

[JungleBoy]

But most domestic workers do have kids or have to send money home to care for the rest of the family.

The most basic needs i.e. food for the family, and transportation can be met with R2000 pay cheque. Maize, potatoes, beans, eggs, milk, etc, are not that expensive. Such foodstuffs are more than enough for sustenance. Human beings do not need to eat themselves to the point of obesity.
The rest of the stuff we often burden ourselves with are nothing but luxuries that are sometimes even detrimental to our good health.

 

[davemc]

R6.11 an hour minimum.

So noted, thanks for the headzup.

 

[Mila]

The most basic needs i.e. food for the family, and transportation can be met with R2000 pay cheque. Maize, potatoes, beans, eggs, milk, etc, are not that expensive. Such foodstuffs are more than enough for sustenance. Human beings do not need to eat themselves to the point of obesity.
The rest of the stuff we often burden ourselves with are nothing but luxuries that are sometimes even detrimental to our good health.

That is so true. The weekend a begger asked me for money cause they hav not eaten anything since the previous day... I looked at her and thought... You could do with a few more of those days

I do think it is too little but is that not the driving force behind making something better of yourself?

 

[Moron noodle]

The minimum wage kills employment and is a basic interference in a private contract between 2 people.

Disclaimer: I don't and never have paid my staff anything close to or lower than the minimum wage.

However there are plenty of jobs out there I could see that only make sense financially if the employer pays below minimum wage. Lets say e.g. handing out flyers at the interchange , hiring a car guard at your premises - pretty low skilled easy work.

As the employer I have 2 options here

A) Employ someone at below minimum wage.
B) Don't employ anyone and provide no service.

So please explain to me why the State now gets to decide for a potential employee, whether he or she gets to work? Surely (NB.) the potential employee would be best suited to make that decision?

I think the original idea for the minimum wage stems from the Marxist view of the economy as a fixed static pie, with everyone fighting for their share.

For some insight on this and especially on how the minimum wage has devastated the US black community in the States please have a look at: (includes some hard data on the effects of minimum wage on the US minorities).

http://www.thefreemanonline.org/columns/the-minimum-wage-good-intentions-bad-results/#

http://www.capmag.com/article.asp?ID=4472
"The net economic effect of minimum wage laws is to make less skilled, less experienced, or otherwise less desired workers more expensive -- thereby pricing many of them out of jobs."

Minimum wage laws hurt the poor.