Derek:
If the minimum wage is $10/hour and there's no profit in paying baggers more than $6/hour, there won't be any baggers, simple as that.
That's where a company decides whether it can achieve a break-even point, or where it may still retain it as a loss-leader, especially if the customers' expectations have been raised and it's commonplace. One of the few exceptions to cutting back on such an expectation is perhaps Easyjet et al who cut back on inflight service in exchange for a no-frills branding.
That still shouldn't affect the idea of a minimum wage, though, i.e.:
The "ethical grounds" were noble but misguided.
That would be a subjective notion. Why is it misguided to believe that one occupation is worthy of breadline wages and another above or below it? If the community is faring well, why shouldn't eveyone be permitted to at least eat, if they are willing to put in a days work? While I have no difficulty with the Capitalist idea that certain professions are more desirable and are recompensed accordingly, I do have difficulty with the idea that taking an ethical stance is "misguided". IMHO it's merely being responsible.
I agree that market forces often drive companies to seek cheaper labour, but it's that the whole ethos of "fairtrade", which brings us back to Six's comparison to sweatshops. If the Western world wants goods but also wants to meet the ethical challenges of letting their labour force eat, then there's a cost attached which most people are willing to pay.
Lisa:I can assure you that even our lowest paid Doctors are getting far more than a "meagre (??)" $60k. They are also charged less than your's for their education and training. I've never understood that, as you must surely have more trainees walking through the doors of your educational institutions. You'd think it would be cheaper