It's not an entirely different problem, the point I'm trying to make is that this single factor causes a clear link between minimum wage and unemployment.
Currently, it makes sense for a poor person somewhere to make a living by sewing sneakers - because that person is cheap. It makes sense for people to work on data entry, it makes sense for people to flip burgers, it makes sense to do a lot of things - but only while the people remain so cheap.
There are many jobs already that are impractical to do in USA, because of the minimum wage - they get done either by automation or by someone in much poorer countries, but never again by a US worker. If minimum wage goes from $10 to $15, then more types of jobs will join that.
The 'entirely different' problem arrives when the true market rate of low skilled labor becomes negative - i.e., an automated process generally costs less than a manual process even if the workers would work for free or for basic shelter/sustenance (order of magnitude less than first world would call a livable wage). I don't want this, but it seems rather likely that it will happen within my lifetime.
Currently, it makes sense for a poor person somewhere to make a living by sewing sneakers - because that person is cheap. It makes sense for people to work on data entry, it makes sense for people to flip burgers, it makes sense to do a lot of things - but only while the people remain so cheap.
There are many jobs already that are impractical to do in USA, because of the minimum wage - they get done either by automation or by someone in much poorer countries, but never again by a US worker. If minimum wage goes from $10 to $15, then more types of jobs will join that.
The 'entirely different' problem arrives when the true market rate of low skilled labor becomes negative - i.e., an automated process generally costs less than a manual process even if the workers would work for free or for basic shelter/sustenance (order of magnitude less than first world would call a livable wage). I don't want this, but it seems rather likely that it will happen within my lifetime.