*1010 - i'm not an economist

Pros of minimum wage:
- decreases the burden of poverty on the economy
- provides an incentive for low-skilled workers to find work as labour is more attractive
- increase in purchasing power leads to higher quality of life, decreasing crime, increasing spending, etc.
- ensures that workers are fairly compensated

Cons of minimum wage:
- slows growth as a minimum wage may represent an expense a company cannot afford and businesses are less likely to pay a minimum wage for many low-skill jobs. The least employable will be less likely to find work.
- businesses that have to bear the costs of minimum wage will pass on increased labour costs to consumers (e.g. more expensive Hokkien mee at the hawker center)
- as an unskilled worker, it eliminates my ability to opt for lower pay rather than unemployment
- may encourage companies to use illegal labour at the expense of unemployed citizens
- may lead to misallocation of resources as supply of labour increases but fewer will be demanded due to their higher costs
- redistribution is unlikely to happen, inflation of pay might instead
- lower skilled workers should receive lower pay; a minimum wage may foster dependence

I'm not an economist, but the concept of minimum wage is befuddling to me. There are so many conflicting studies that show the merits and shortcomings of either school of thought, and I suppose the fact that there is so much room for debate is why it is a hot point of contention.

Logically, it makes sense to me that it sounds like a good thing to do to help the poor and unemployable, but it doesn't make sense to me that it can actually work to help the economy. It sounds like it will only backfire to ensure that people who do not have the skills to justify the minimum wage WILL be unemployed. But I guess it works, since it has been a law here in America for decades. But there also must be a reason why Singapore has chosen to go other ways to help the poor (e.g. income supplements, subsidised training schemes to "teach the man to fish").

In need of some enlightenment, please? :) Apologies in advance for my ignorance. I figure there must be a reason for the fact that I have lots of friends who are all far brainier than myself!