Workers can increase their own value in the workplace by improving their work assets, through education, effort or tenure.
In addition, the U.S. economy would not necessarily benefit. A higher national minimum wage would distort the market for labor in some states that currently face conditions leading to lower wages. This disruption of the market could reduce demand for labor and could also result in a less efficient market. In addition, increases in production costs are often passed on to consumers. While the minimum wage worker may earn more, inflation will increase, essentially transferring wealth from all consumers to a small group of workers. This does not imply the creation of new wealth, only a redistribution of it in a manner that increases economic inefficiency. In addition, a higher minimum wage entices workers into the job market to the detriment of other workers, and many minimum wage earners are young singles living at home, so the social goals of a higher minimum wage are largely unmet (Garfield, 1996).
4. An athlete can earn $1 million for their work, the same as any other worker. The athlete is generating a product -- performance for the employer,...
As such, the athlete has economic value and should be compensated in line with that economic value.
The argument that athletes should not be paid as highly as they are is not based on economic fundamentals, but on the idea that sport is somehow frivolous. That the athletes are having fun is irrelevant to the economics of the athlete's situation. There is a scarcity of top level athletes in the world and their work is highly valued by the public. Thus, they should be compensated in line with the value of their work.
Works Cited:
Mui, Y. & Barnes, R. (2007). High court overturns century-old antitrust rule. Washington Post. Retrieved October 5, 2010 from http://www.washingtonpost.com/wp-dyn/content/article/2007/06/28/AR2007062802370.html
Gibson, M. (2010). A brief history of OPEC. Time Magazine. Retrieved October 5, 2010 from http://www.time.com/time/business/article/0,8599,2019120,00.html
Garfield, R. (1996). The case against a higher minimum wage. Joint Economic Committee Report. Retrieved October 5, 2010 from http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm
