2011-06-16

Business Idea of the Day

If minimum wage causes unemployment, then there are people willing to supply low-skilled labor at below-minimum wage. Start a company that functions as an umbrella organization willing to sell said labor in bundles, at a flat rate, set by the laborer. For example, rather than hiring 20 migrant farm workers at $4/hour, a landowner would pay $80 flat rate for their field to be plowed, or sprayed, or whatever.

Laborers in this firm function as private contractors who sell bundles of labor for flat rates on a case-by-case basis. The labor itself, then, is bundled and commoditized and profits go directly to the sellers of labor. The business itself charges a finders' fee - probably charged to the buyers of labor, not the sellers, as in the standard temp staffing firm model; but also functions more like an auction market such as Ebay, where the business delivers a service that matches up buyers and sellers.

In this way, we overcome minimum wage laws and deliver profits directly to laborers. We also stimulate entrepreneurship and contract negotiation, rather than forcing people to rely on labor legislation to dictate the terms of every employment contract.

Yes or no? What do you think?