Minimum Wage

Smith would think the minimum wage laws in the U.S. are on the right track. Smith says how families can often not afford education for their children causing the children to have to work as early as possible. Smith also says that this trade is “simple and uniform” to teach the children how to work or to teach the beginnings of a real trade. I do not think Smith would agree with a limitless low for earnings, no matter how simple the task Smith would agree with a uniform minimum wage. The reason the child is working and not getting an education is because of the lack of money, if the child only earned a penny a week, is it really worth it for that child to be working? It would be argued that “every penny counts” but it would make more sense for the child to wait until they are old enough to at least do physical labor and earn say a dollar a week than to have them start work at age three. Work at this early of an age can create a risk of early repetitive motion injury (tendinitis for example), only earn a penny a week, and not be able to work at a later age due to that injury. However, Smith would argue that the current minimum wage should be higher. Since the trade is the life of the person and the life of the person depends on the wages earned from the trade then in order to support a family, roughly seven dollars an hour is not enough. Smith agrees with the concept of a minimum wage but he believes that a family should be able to live off that wage. In the U.S. today it is impossible for a family of four with two people earning minimum wage to have a healthy life. It is nearly impossible for one people working on minimum wage to keep themselves healthy and safe. Smith would argue to keep minimum wage but make it higher.