Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In order for the economy to be healthy, the income level with the largest number of people must have the money to spend. And, if you have more than 40% of the people collecting food stamps, guess which income level has the largest number of people. It suggests there are far more people at minimum wage than in the top 1%.
You got it.
Quote:
Originally Posted by jimhcom
OK, let’s look at this logically. First when the employer is forced to pay higher wages to the lowest tier of their workforce, what does that do to the bottom line? It reduces overall profit.
Now does that increase or decrease the ability of the employer to raise wages in higher wage tiers?
In order to restore the same level of profit, the employer must either raise prices, or increase productivity.
Now, raising prices makes his product less affordable and reduces a purchase which is undesirable. Increasing productivity is a catch phrase for getting more work out of each worker making it possible to do business with fewer employees. This allows the employer to lay off workers resulting in higher unemployment.
The workforce is governed by the same laws of supply and demand as every other business entity.
The way to raise wages across the board is to increase the demand and lower the supply of workers.
Simply increasing minimum wage does not accomplish this. In fact it does the opposite.
I am inclined to agree with you. So not only do you have to raise the minimum wage you need to dump a lot of cash into the consumer end of the economy at the same time to eliminate the dead weight loss of the higher minimum wage. Give people free cash and they are far more likely to spend it on higher price stuff. You can raise the prices to cover the increase cost of the higher wages without seeing a drop in sales.
I am inclined to agree with you. So not only do you have to raise the minimum wage you need to dump a lot of cash into the consumer end of the economy at the same time to eliminate the dead weight loss of the higher minimum wage. Give people free cash and they are far more likely to spend it on higher price stuff. You can raise the prices to cover the increase cost of the higher wages without seeing a drop in sales.
No, giving people free cash solves nothing and creates problems.
Why is everyone looking for something for nothing? Gees, we have become a nation of shameless bums wanting a handout!
Economies are built on production and increasing GDP. The workers need to be productive, the corporations need to keep production here in the US and the Government needs to enforce immigration laws and scrap free trade treaties that benefit corporations at the expense of American workers.
Americas markets belong to its citizens, and should provide jobs for its citizens. Not Mexican citizens, not Chinese citizens, not Korean citizens, AMERICAN CITIZENS!
Globalization and so called free trade are just schemes concocted by corporate lawyers to maximize corporate profits at the expense of American jobs.
The days when America had a strong economy were the days when we produced and consumed our own products.
Today we produce services and consume someone else’s products. That is a recipe for a declining economy and high unemployment, which is exactly what we have.
No, giving people free cash solves nothing and creates problems.
Why is everyone looking for something for nothing? Gees, we have become a nation of shameless bums wanting a handout!
http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg This is the problem. Way too much debt. Normally I would agree with you that the moral hazard out ways the benefit of quickly fixing the economy. But the banks aren't immune to moral hazard and they have gotten plenty of free money. We need the total debt to come down quickly and we need the tax base to expand dramatically. So $30 an hr minimum wage and enough money handed out to keep the economy from imploding. This is what is needed to keep from having a run on USD. A run on USD would be worse than the moral hazard of what it will take to keep it from happening. In my humble opinion. But then again http://static.seekingalpha.com/uploa...load_gdp_1.jpg we are set up to spend some time under the curve. It will do us all some good. And our grand kids as well. So that is the down side of ignoring the moral hazard. That they don't get the benefit of the pain that will come our way from up coming run on USD.
Quote:
Originally Posted by jimhcom
Economies are built on production and increasing GDP. The workers need to be productive, the corporations need to keep production here in the US and the Government needs to enforce immigration laws and scrap free trade treaties that benefit corporations at the expense of American workers.
Americas markets belong to its citizens, and should provide jobs for its citizens. Not Mexican citizens, not Chinese citizens, not Korean citizens, AMERICAN CITIZENS!
Globalization and so called free trade are just schemes concocted by corporate lawyers to maximize corporate profits at the expense of American jobs.
The days when America had a strong economy were the days when we produced and consumed our own products.
Today we produce services and consume someone else’s products. That is a recipe for a declining economy and high unemployment, which is exactly what we have.
I agree with you completely. 100% got it in spades. Time to retake the nation from the people that have sold us out. Ronald Reagan did it back in 1981.
I agree with you completely. 100% got it in spades. Time to retake the nation from the people that have sold us out. Ronald Reagan did it back in 1981.
Your saying that Ronald Reagan retook the nation from those that sold us out right? What Reagan did was create one of the greatest post war economies in the history of any nation.
Your saying that Ronald Reagan retook the nation from those that sold us out right? What Reagan did was create one of the greatest post war economies in the history of any nation.
Nope he sold us out. It looked good on the surface but he undermined our economic foundation like no other president in our history. He through away responsibility with money and gave us the biggest debt bubble in the history of the world. http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg
Saving for retirement in the stock market instead of banks. The plunge protection team. Supply side economics. Etc. Really really bad stuff for us long term and we bought it hook line and sinker.
The idea that raising the minimum wage is somehow a panacea that cures all the ills of the economy is completely ignorant of the reality of the situation.
Never said we didn't need to use other policies alongside it to work.
On a side note...
Really need to work on the use of paragraphs when you ramble on.
No, giving people free cash solves nothing and creates problems.
Why is everyone looking for something for nothing? Gees, we have become a nation of shameless bums wanting a handout!
Economies are built on production and increasing GDP. The workers need to be productive, the corporations need to keep production here in the US and the Government needs to enforce immigration laws and scrap free trade treaties that benefit corporations at the expense of American workers.
Americas markets belong to its citizens, and should provide jobs for its citizens. Not Mexican citizens, not Chinese citizens, not Korean citizens, AMERICAN CITIZENS!
Globalization and so called free trade are just schemes concocted by corporate lawyers to maximize corporate profits at the expense of American jobs.
The days when America had a strong economy were the days when we produced and consumed our own products.
Today we produce services and consume someone else’s products. That is a recipe for a declining economy and high unemployment, which is exactly what we have.
Nope he sold us out. It looked good on the surface but he undermined our economic foundation like no other president in our history. He through away responsibility with money and gave us the biggest debt bubble in the history of the world. http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg
Saving for retirement in the stock market instead of banks. The plunge protection team. Supply side economics. Etc. Really really bad stuff for us long term and we bought it hook line and sinker.
Your not that old are you? you don't remember much about what was happening in the late 70's. I remember a time after Reagan became president that people were working again. Companies were growing, people could buy homes, people had more money in their pockets. Prior to that we lived in a differant world. Trickle down works and Reagan proved it.
You may want to see what our current President has done to this nation of ours. Sold us out will be how Obama is remembered.
Your not that old are you? you don't remember much about what was happening in the late 70's. I remember a time after Reagan became president that people were working again. Companies were growing, people could buy homes, people had more money in their pockets. Prior to that we lived in a differant world. Trickle down works and Reagan proved it.
You may want to see what our current President has done to this nation of ours. Sold us out will be how Obama is remembered.
What RR did was to say screw our kids let us live on credit now. Now The Dow is coming down again valued in gold and we have way too much debt. We can't do it again. It wont work this time. What trickle down was is just a credit binge. Now the bill is coming dew.
http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg This is the problem. Way too much debt. Normally I would agree with you that the moral hazard out ways the benefit of quickly fixing the economy. But the banks aren't immune to moral hazard and they have gotten plenty of free money. We need the total debt to come down quickly and we need the tax base to expand dramatically. So $30 an hr minimum wage and enough money handed out to keep the economy from imploding. This is what is needed to keep from having a run on USD. A run on USD would be worse than the moral hazard of what it will take to keep it from happening. In my humble opinion. But then again http://static.seekingalpha.com/uploa...load_gdp_1.jpg we are set up to spend some time under the curve. It will do us all some good. And our grand kids as well. So that is the down side of ignoring the moral hazard. That they don't get the benefit of the pain that will come our way from up coming run on USD.
I agree with you completely. 100% got it in spades. Time to retake the nation from the people that have sold us out. Ronald Reagan did it back in 1981.
how the **** does massive inflation and business closing down left and right with your idiotic 30 dollar an hour min wage not make the economy even worse
you can't tax your way out of this mess, and you can't inflate your way out either
if you really wanna make filthy rich people even richer and insure a lot more homeless unemployed and dying middle to lower class people this is a great idea
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
