I’ve tried countless times to explain this concept to people. Many can’t (or won’t) seem to grasp it. The minimum wage- or any set standard of minimum/maximum page- is wholly arbitrary. Establishing a minimum standard of wage, as a rule across the board, is restrictive and limiting- for both the business and the employee.
Employees need to be critiqued and evaluated as individuals. Any pre-set standard of wage disregards the value that individual can bring to the employer. The same is true for the employer. An employer needs to be able to evaluate the employee in regards to the productivity of said employee.
Read Art Carden’s ‘The Minimum Wage, Discrimination and Inequality’ for an interesting take on the subject.
And if you really want to get into it, read this study by Walter Block and Paul McCormick.