Oh great...
Well, hello there Karl Marx.
I am impressed that you are using one of Marx's theories. I thought you capitalists disagree with Marx.
It was Marx who said that wages always drop to minimum because any place that increases wages above minimum cannot compete with other places on the market.
Also, places that increase wages experience buisness drain as investments naturally move to areas with cheaper labor force.
Therefore, any area that increases wages is doomed to have not only less investments, but also more expensive products that cannot compete on foreign markets while foreign products can compete on all markets due to being cheap.
However, the reality of the government regulated market is such that the more minimum wage increases, the more money ordinary person has.
First, countries that dont have minimum wage dont compete well for many reasons.
1. If you sell all your cheap products to other countries, what will local population buy? Nothing.
Making your own population very poor is actually a terrible way to manage a country.
It creates whats called negative trade of goods.
If I have 5 cookies and you have 1 cookie.
If you have each of your five cookies cost 1 dollar and I have my one cost 5 dollars. If you sell yours to my population, your population then is forced to buy mine.
So we earn the same, but you put much more effort into making those 5 cookies than I did for my 1, and my population ends up having more cookies.
2. There isnt enough Chinese products for entire America and China. The reality is that Americans would still have to buy American products, like they do right now. Plus, plenty of patriots. Not everyone wants Chinese, even when cheaper.
3. Tarrifs - This is what China fears the most.
4. While it is true that US products cannot be cheaper than Chinese ones without government intervention, it is still true that it would be bad for China to try to conquer US market.
In capitalism, "conquering a market" actually means making yourself dependent on said market to earn money. So really, any attempt of China to make itself dependent on USA would be bad for China. USA closes market for China or imposes sudden tarrifs, and China's economy goes to shit instantly with millions of Chinese buisnesses collapsing.
5. There is no history of minimum wage failing. In fact, high wages attract foreign workers and improve buisnesses.
6. You are not beating China by not implementing minimum wage.
Wages in China are like 200 $. So unless you lower wages of Americans to that much, which you wont do, minimum wage law makes very little difference in that particular competition.
Now, I have to say that Marx himself supported minimum wage.
He described the market as bunch of people eating same soup with spoons of different sizes. Minimum wage just gives workers bigger spoons so they eat more, while spoons of capitalists become slightly smaller so they eat less.
