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Old 03-19-2013, 08:34 PM
 
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Quote:
Originally Posted by crescent22 View Post
This whole line of thinking is ridiculous.

2) How convenient to use 1960 as a starting point when that had almost the highest inflation adjusted minimum wage in the last 60 years. We know that technology and competition from emerging market labor has pressured low-skill labor rates vs 50 years ago
.
There is another problem with using the use of the 1950s and early 1960s as an example of what the American labor market should be: American business had little to no international competition at that time. Europe and Japan were rebuilding from the war and places like China, Taiwan and Korea hadn't industrialized yet.

If you want to replicate the economy and labor market of the 1950s and 1960s then someone will need to engineer another world war.
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Old 03-19-2013, 08:39 PM
 
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People don't really think critically anymore do they? The minimum wage has always increased over time, like ALL wages have... the problem is, the minimum wage was still poor in the 1950 as the minimum wage of 2013... raising minimum wage does not stop you from being poor... the only thing stopping you from being poor is earning more than minimum wage and not because minimum wage is elevated...
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Old 03-19-2013, 08:48 PM
 
Location: St. Louis, MO
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Minimum wage in 1960 actually wasn't that much more than the current Federal Minimum Wage. The minimum wage in 1960 was $1/hr which, using an inflation calculator, translates to $7.65 today.
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Old 03-19-2013, 08:57 PM
 
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The minimum wage in 1950 was $0.25 which is $2.35 today, in 1963 it was $1.25 which is $9.25 today... so I guess it depends on when you wanted to look.. was poverty eliminated in 1963 with the minimum wage increase? No, it didn't... increasing minimum wage does NOTHING to get rid of poverty... the only way out of poverty is to not make the least amount of money... somebody has to but if you don't want to be in poverty, don't be that person...
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Old 03-19-2013, 09:01 PM
 
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no nothing about this effort excites me.
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Old 03-19-2013, 09:33 PM
 
Location: Metro Detroit, Michigan
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Quote:
Originally Posted by celcius View Post
Agreed - either that, or the dollar-menu becomes the $5-menu.

Minimum wage acts as the price of unskilled labor for commodity-like goods & services. Thus, if raised, such goods/services must raise in price to compensate.

Don't get me wrong - I'm a huge fan of (Henry) Fordism, but it just wouldn't work.
Agreed. In Henry Ford's time, America was the production capital of the world. We were England's cheap labor nation, much like China is to our businesses today.

To compete in this day, American corporations have found ways to maximize a worker's productive capacity. An example would be McDonald's workers and their automated functions. They don't even have to manually pour a drink or flip a burger.

Of course, when you increase a worker's productive capacity, you reduce the total demand for labor. Since wages are a function of supply and demand, companies can pay less in times of labor surplus. In order to increase demand for products and services, you need more customers, but that's not going to happen in this environment.

Increasing minimum wage may increase demand, but it's hard to tell what would ultimately happen. Since fewer workers are required to keep up with demand, I don't believe the results would be that overwhelmingly positive. Companies will just find additional ways to limit their requirements for labor.

It's also important to realize prices are often determined by wages. People make more money on average in countries like Switzerland. Prices of goods and services are also more expensive. The ability to get ahead or climb out of poverty is no more determined by the wage as it is the COL. Increasing the wage will inevitably increase the demand for products and services, and ultimately increase the COL.
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Old 03-19-2013, 09:36 PM
 
Location: South Minneapolis
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Quote:
Originally Posted by matzoman View Post
84 percent of minimum wake workers are age 20 and over according to the EPI ( Economic Policy Institute)
That figure would seem to be incorrect. According to the United States Department of Labor, Bureau of Labor Statistics, 23.5% of workers at or below the minimum wage in 2011 were age 16-19. I would give more credibility to BLS statistics than so-called "non-partisan think tank" that has an obvious political agenda.

Tables 1 - 10; Characteristics of Minimum Wage Workers: 2011
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Old 03-19-2013, 09:38 PM
 
Location: Vallejo
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Quote:
Originally Posted by matzoman View Post
In the hearing with other legislators it was discussed that when adjusted for inflation and in regard to productivity the minimum wage for an American worker should actually be 33$ dollars an hour!
Productivity is mostly at the hands of technological innovations. Indexing minimum wage to both inflation AND technology would be a great way of increasing unemployment, however. A lot of low wage jobs are around because it's more effective to use a person than a machine. Bump the minimum wage up, which would push up everything else as well, just provides more incentive to replace a job with technology which increases productivity per man hour which drives up the minimum wage which... you get the point.
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Old 03-19-2013, 09:43 PM
 
Location: Los Angeles (Native)
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If minimum wage goes to $22 ... what about the wages of people making $22 now that probably have degrees,etc? Unless those wages go up too...who would bother going to school if they could start at $22? And yes i know there are people with degrees that make min wage.

I agree working people have been screwed for decades and so many are struggling to make ends meet even if they have two people working in a household.

I'd rather see CEO, Sports player, movie star pay ,etc pay a lower so that Americans can lead a decent life in general.

I think the poverty issue in this "wealthy " country is an embarrassment.

If that's "Socialist" I guess I'm a socialist.
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Old 03-19-2013, 10:01 PM
 
8,158 posts, read 5,726,574 times
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Quote:
Originally Posted by evilnewbie View Post
... increasing minimum wage does NOTHING to get rid of poverty... the only way out of poverty is to not make the least amount of money... somebody has to but if you don't want to be in poverty, don't be that person...
It's worth pointing out that those who are deemed "impoverished" by the government definition are often fat and have cable TV . There isn't "poverty" by world standards in the US a la Bangladesh or virtually any African nation where people are starving to death. Given how we define poverty, i.e. in terms of relative income, poverty can never be eliminated so long as people make different amounts of money. But it's useful to the politicians to always have a group that they can refer to as "impoverished" even if their basic needs are being met.

Quote:
Originally Posted by jm1982 View Post
If minimum wage goes to $22 ... what about the wages of people making $22 now that probably have degrees,etc? Unless those wages go up too...who would bother going to school if they could start at $22? And yes i know there are people with degrees that make min wage.
Those people would still get hired, but they would also have to do the work of the people who were formerly making $7.25. Raising the minimum wage wouldn't shift the pay scale, it would just put more work on to a smaller number of people.

We're already seeing a lot of people with degrees accept positions that they are over qualified for that were formerly staffed by non-degreed people. Raising the minimum wage would only exacerbate that.
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