@Miles The idea is very simple: People in the lower income class spend nearly 100% of their money - which is good for the welfare and ensures the jobs of other services. People in higher income classes are not even able to spend all their earned money. They will bunk it somewhere, somehow, most of the time not in a sustainable way nor in a way where the national society could benefit from (remember tax havens, letter box companies, cum ex, etc).

So if you want to increase welfare then increase the lower income and put higher taxes on higher income (don't worry, a billionaire wouldn't even notice an increase of 20% in his daily life) In my eyes, billionaires should have a 100% tax on their income since they are already rich enough and don't need to become any richer. And they did not become rich by their own work - it was the work from others that were eductated by states and that have much lower incomes.

@Miles Your arguments are lacking. Look at Switzerland with their minimum wages. In many points I disagree with the policies of Switzerland. But their behaviour on minimum wages is a good example for the rest of the world. Switzerland is one of the wealthiest countries on earth, and even people with a so called low income earn much more than many academics in their neighbour countries. For example in 2019 the minimum wage in Neuchatel was 20 CHF (something like 19 €) + extra payments on weekends and for holidays and including one extra monthly payment per year (means 1/12 extra) - remember: regulated by law! Even hotel and catering buisnesses have to pay the extra payments on week ends. Where else can you find such fair working conditions for low incomes? And still the jobless rate is less than 5%. Although they have a quite high rate of people who don't have any professional education (10%).

Not to mention it raises the prices and make poor earning people lose their jobs since it is a lot harder to maintain them. Imagine losing your job and every price starts to rise up. Also, minimum wage absolutely destroys the poor population's change to get low earning beginner jobs and rise slowly because companies only hire fewer people with better skills. This is a natural reaction to the minimum wage.

But also yeah, it's kinda dumb that capitalists like minimum wage increases (assuming capitalists means the people owning the factories and corporations). It's completely contradictory to what's in their self-interest which is to pay the worker as little as possible for the most amount of hours.

To settle the completely brain-dead debate here that seems to be dominated by right-wing talking points that are not grounded in reality, the vast majority of studies into minimum wage increases support the notion that the raising of the minimum wage does not increase unemployment to ANY substantial or significant amount. Any jobs lost would be in frictional unemployment which is perfectly acceptable and considered a healthy function of the market, as those in frictional unemployment will inevitably find another job.

This mod is unrealistic . Minimum wage only raises unemployment . It doesnt kill poverty and it doesnt raise poor earnings
Also it makes socialists happy , and capitalists unhappy .
I do not recommend this mod .

"This mod doesnt make sense. Capitalist would not like min wage hikes. Historically, they've not only fought against them, but are trying to abolish it"

??? {LINK REMOVED}https://www.nelp.org/blog/leaked-poll-for-chambers-of-commerce-shows-business-execs-overwhelmingly-support-raising-the-minimum-wage/

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This mod doesnt make sense. Capitalist would not like min wage hikes. Historically, they've not only fought against them, but are trying to abolish it (most likely because they want to pay their employees even lower wages, otherwise why bother?) This then also means conservatives dislike it. Additionally, while it does indeed decrease poverty, it's actually more likely to increase unemployment as more capital directed to individual wages means less capital to "spread around" to more employees, which leads to fewer employees. Is a VERY basic economic reality I don't see why you missed.

The effect on unemployment is too low, raising the minimum wage to 20 would have caused a much higher unemployment

untrue

@toffiyaroslavivna17 It is so untrue, omg. Typical far-right gibberish.

This mod is unrealistic . Minimum wage only raises unemployment . It doesnt kill poverty and it doesnt raise poor earnings
Also it makes socialists happy , and capitalists unhappy .
I do not recommend this mod .

the only effect on the economy that minimum wage has is increasing unemployment.

also Zenius you dont know what the alt right is also incresing the minimum wage would also drop GDP.

Minimum Wage does more bad then good and even if it did not it would atleast affect some voters opinion of you.

Can you please make a way to cancel the policy? Thanks!

Works for me. Thanks!

Where are the negatives for this?

Does this fucking mod work with the game or not? I don't give a shit what you mouthbreathers are arguing about in a game's comments section. Keep political debates on facebook.

my mom's danish an i live in britain, im not a dumb american

Zenius - denmark has less financial regulation than the US and it's the only thriving scandinavian country (apart from norway but oil)

Doesn't even work. Can't see it in the workshop nor in the game.

Also, the percentage of the population who had a job in 2015 was higher in Denmark than the USA, 73.5% compared to 68.7%.

And regarding being close to economic collapse... You really need to leave your alt-right nationalistic conspiracy cell for a moment and get some fresh air. The Scandinavian countries are among the strongest economies in the world and constant tops all forms of economic rankings. Just one comparison: The USA had in 2016 a total gross national debt of $19.8 trillion or about 106% of the previous 12 months of GDP while Denmark only had a debt of 37.8% of GDP...

The average number of living years are higher in Denmark. Not to mention the vast difference in level of crime and violence as well as huge differences in level of corruption. For example the murder rate was 5 times higher in the USA than in Denmark for 2013.

Danes has the second highest income in the EU. On top of this should also be included that quality of many products in Denmark are general higher, especially houses are way better maid. This also means that we have a general 2 years warranty on ALL purchases by law, generally extended further on larger things like washing machines and cars. Try visiting Denmark, you will quickly see that our living standard is way higher than the average american.

I'm from Denmark and no, ordinary Danes don't pay 60,2% in taxes. The average tax payer pays 34% in taxes, about half of your fantasy claim... And in return for that you get among other things: Free healthcare, free education all the way up to university degree with government provided living grants of approximately 940 dollars a month, subsidized public transport and many other things. Also, unlike the USA, included in the minimum wage is also: Paid sick leave, paid vacation for 5 weeks a year, 52 weeks paid maternity/parental leave and substantial unemployment benefits, just to name a few.

The poverty rate in the USA is in general 3 times higher than in Denmark, among children, the USA poverty rate was 10 timers that of Denmark in 2012. You still have hunger among parts of the population, something that was eradicated in Denmark in the 1950s.

But most low-paid jobs can't do that. A McDonnald has to be where the customers are, they can't just move the shop to another country without lossing their income/profit. And in onther economic sectors, low paid jobs often aren't worth having for a country in the first place because they are bad economic sectors, like cheap plastic toy production. That's why Singapore for example chose to raise it's wages with like 60% I think it was, when they were in a crisis and declare that if an industry couldn't afford the new wages then they could just get out of the country! The result: Singapore now has one of the most advanced economies in all of Asia and a wealth level closer to Europa than to it's Asian nabourghs.

The people who thinks higher wages leads to higher unimployment don't understand how real world economics works. For example, Scandinavian countries have some of the highest wages in the world and also some of the lowest unimployment rates. Low income jobs migth disappear, but often not. We also have McDonnalds in Denmark, the wage is just much higher than in the USA. Most of the time, even low paid jobs still makes a ton of profit for the owner, as long as the wage rise doesn't go over the profit rate, then it will still make sense to keep the jobs for the owner. With the exception of owners wanting to move to another country to find lower wages.

I don't understand why most comments are a political discussion instead of relation to how the mod works. When I look this up its because I want to know if this is a good mod to improve the gameplay!

I feel like everyone's bitching over the real world applications of minimum wages in our economy more than making a judgement of how this mod actually affects the game.

Minimum wage is an attempt at redistributing wealth. You can make an argument that an increase to the minimum wage would benifit businesses by increasing the disposable income of the average consumer. You can also argue that it will cripple already struggling small to medium businesses. It would likely lead to high unemployment, initially. That is why this is an interesting thought experiment, there are no right answers. Stop being partisan asshats

why is anyone taking issue with higher minimum wage = less jobs, this is BASIC LOGIC, jobs that pay below the minimum wage can't exist which means less jobs

it's like people don't understand what jobs are, its not to give people money for no reason, the whole reason you get a wage is because the company becomes more profitable with your employment, if you don't improve the business then there is no job

socialists are so retarded, how can they not see something so painfully obvious

Why does Capitalist like this they loose more money with this...

@cris lol at this retarded corporatist

I love all the retarded socialists in the comments not seeing how real economy works.

doesn't show up>???!!!

Not sure why you should model unrealistic things like unemployment going up due to minimum wage just because capitalists like it. ;) In practice nobody has ever actually passed a high enough minimum wage law that unemployment has been affected on a permanent level.

Top is right that it would inflate the economy a little, but if the economy is in recession or downturn, the effect should be good overall.

It should slightly hurt GDP and substantially harm Foreign Trade though (the latter of which in this game basically is a stand-in for a positive trade balance when high), the latter of which will have further negative effects on GDP...

I believe you mean INCREASE productivity? People work harder when they're paid better. It should decrease the Work Week, though (as many individuals will work fewer hours if paid more)- which in turn decreases Productivity and Unemployment... (indirectly)

This mod should be updated a little. It should effect the GDP some how and decrease productivity.

On the other hand, people will get a high minimum wage for doing minimum work. It can discourage people from holding more important jobs because they may not need the extra money if the minimum wage provides enough.

top it does increas inflation but if u rise it slowly its barley noticible, and zas well there would be less need for welfare, as those who work minimum wage (which is not living wage) jobs need the extra help, so the 4-6 year slow increase of the minimum wage to a living wage, would not only baerly effect the economy, but would end the large amount of people on welfarem that reps so often complain about.

@SuhbsMC, as would the inflation.

Raising the minimum wage should also increase the GDP as the demand for goods and services would increase due to people having more money to spend.

@Erhva It doesn't really change the inflation that much. Yes, it cost more to company to operate but the lower class will spend more so it kinda balance itself. Source: the province I live in Canada raise it almost yearly.

Well, in general as minimum wage goes up, it forces prices to have to rise, thus leading to overall inflation. Basically, whenever there is a push in the real world for higher minimum wages, it is really just a "quick fix" to appease the lower class. It doesn't actually solve anything and half the time causes more economical problems which could be an interesting route to take with this mod.

I also just realized, this is already implemented in the game as currency strength, so realistically you could have it lower currency strength. I'm not saying to do it necessarily. That was a very controversial opinion not too long ago during President Obama's initial push for increase in minimum wage, plus it would probably render the mod semi-pointless, but it would be an effect that would be fun to toy around with nonetheless.

@Ervha Could you explain further?

To go along with this, you could add an inflation situation :)

Controversial, but make the game a little bit more challenging.

Can the slider have no minimum wage as a minimum?