Geneva adopts the highest minimum wage in the world at $25 an hour | Hacker News Reader

Geneva adopts the highest minimum wage in the world at $25 an hour

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4 pointsclouddrover6 comments

To add some context to the purchasing power of the minimum wage and of the exchange rate:

https://www.economist.com/news/2020/07/15/the-big-mac-index

https://www.statista.com/statistics/274326/big-mac-index-glo...

'Hernandez said he believes the adoption of the minimum wage initiative in Geneva was "necessary," as unemployment represents an existential threat for so many low income workers in the city. "It will boil down to not having enough to eat," he said.'

Raising the minimum wage creates more unemployment. If someone is willing to pay me x$ an hour and I am willing to work for that amount, why should the government forbid our voluntary exchange?

> Raising the minimum wage creates more unemployment.

Does it? In the US, Washington has the highest minimum wage of any state. And Seattle has a higher minimum wage than the rest of Washington:

https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_Sta...

And yet Seattle had a lower unemployment rate than the national rate pre-COVID:

https://www.deptofnumbers.com/unemployment/washington/seattl...

Seattle's minimum wage ordinance was introduced in 2015. Seattle's unemployment rate has fallen from 10.3% 10 years ago to 3.0% pre-COVID and is now at 7.9%:

https://data.bls.gov/timeseries/LAUMT534266000000004?amp%253...

The main problem everyone has at the moment is coronavirus, not a decent minimum wage.

There are many factors affecting unemployment rates, which does not change the fact that other things being equal, a high minimum wage will raise them.

Claims without proofs aren't convincing. Clinging to an ideological position despite practical realities doesn't do anyone any good.

What he likely meant is that losing a low-paid job, i.e. falling back to unemployment insurance (which in Switzerland is 60% of your net salary, 67% if you have kids) in Geneva often meant that someone would be unable to afford basic needs, with drastic consequences, e.g. losing their apartment. Makes sense since they barely get by with the full salary in the first place. With a high minimum wage this fall to 60% may mean they can get by until they are able to find another job.

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