If you are not paid a living wage, and need government help just to eat, are you not then simply being exploited by your employer?

1 Answer

Answer :

It’s complicated. Some companies definitely benefit from employees being able to collect food stamps, use Medicaid, and section 8 housing. Sometimes the consumer is the one who benefits, because paying low wages can help keep prices down. However, in some cases prices are up, and the money is going to profit. If the minimum wage was high, then competition could only drive down wages so far. Higher minimums help owners who want to pay more to their employees, but can’t with the lower minimums.

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