Double Edged Sword

At first glance I was tempted to say that Adam Smith would completely love the idea of a minimum wage law. In his writings, which he poses to be objective, one gets the clear sense that he is in reality in favor of the laborer. This could be derived from his comments on the masters, the workers' many plights, and the sheer amount of time he spends talking about the workers' advantages, disadvantage, current state etc. So it would seem obvious that Smith really wants these people to be able to have an assured wage which the employer could not go lower than, and could therefore not abuse his laborers, no matter how unskilled the job was. This idea of a minimum live able wage would indeed be appealing to Smith, if that was indeed the case. The minimum wage law seems as though it is simply a cushion for the common man to assure that they are not abused by employers in regards to pay. But upon observing further, one sees that the minimum wage law can be and has been greatly abused. Simply put, what if the wage is not high enough to live off of? Or what if one needs to work ridiculous hours to make ends meet with the wage? Under these circumstances, the law's seemingly noble goal is completely nullified. The average minimum wage in the United States today is about $7.25 an hour. Now say an uneducated worker works the average 40 hour week. Now, before taxes, that worker only makes $15,080 a year. I dare say that one could not even live for ten months on that, let alone comfortably. Consider someone who is ambitious and, despite their lack of education, wishes to truly get ahead in life, but all they qualify for are minimum wage level jobs. Say they work an 84 hour week, which totals to be 12 hours everyday. In this case, again before taxes, they will make approximately $31,668 a year. While this is a more live able wage, it is still on the very low end of the spectrum and would require someone to devote literally half their life, including sleep, to their work. This represents a possibly endless cycle that could entrap someone until they literally cannot take it anymore and do away with themselves. Not only that, but Adam Smith spoke of how the laborer deserves some quality of life, not just to be barely making it. His wage should be enough to live off of and have a little left over to enjoy recreation. So, on the surface, it seems that the minimum wage law is a blessing to the "common man" and would be praised by Adam Smith to the fullest as for limiting the abuse of employers in regards to wage, it is possible that it might not be so. If the minimum wage was perhaps $11.50 an hour, perhaps he would support it, as it gave the worker in this economy a fair shot at a comfortable life. But the fact is that the minimum wage is so grossly under the requirements of living in this country, that it is just as good as if it were not there. And if Smith saw the law being used to the effect that it is today, he surely would shake his head in frustration.