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Minimum wage should absolutely be raised. If you index it with inflation to what it was in the 1960's it would be $10.74. I would raise it even higher than that. A living wage of around $12.50.
I think there needs to be a separate youth minimum wage though. That's how it is in many European countries. If you're under 20 years old the minimum wage could be something like $8.50. That gives small businesses (A yogurt shop, burger stand etc) the incentive to hire young people and also helps their bottom line. Also makes it easier for young people to enter the work force. One reason so many young people have a hard time getting employment these days is that there are so many adults who are working what used to be youth jobs.
What annoys me about the "personal responsibility" crowd is that they have so much resentment for people who are working jobs that don't pay a lot. Every worker who works a low-wage job deserves their situation according to these horrible horrible people. But, I don't think it ever occurred to these nitwits that people who are working are taking personal responsibility. A lot of low-wage workers are also students who are putting themselves through college. Or they are grad students trying to get a decent night job to cover the rent. But these horrible nitwits that want to keep wages low don't seem to grasp this.
Minimum wage should absolutely be raised. If you index it with inflation to what it was in the 1960's it would be $10.74. I would raise it even higher than that. A living wage of around $12.50.
I think there needs to be a separate youth minimum wage though. That's how it is in many European countries. If you're under 20 years old the minimum wage could be something like $8.50. That gives small businesses (A yogurt shop, burger stand etc) the incentive to hire young people and also helps their bottom line. Also makes it easier for young people to enter the work force. One reason so many young people have a hard time getting employment these days is that there are so many adults who are working what used to be youth jobs.
What annoys me about the "personal responsibility" crowd is that they have so much resentment for people who are working jobs that don't pay a lot. Every worker who works a low-wage job deserves their situation according to these horrible horrible people. But, I don't think it ever occurred to these nitwits that people who are working are taking personal responsibility. A lot of low-wage workers are also students who are putting themselves through college. Or they are grad students trying to get a decent night job to cover the rent. But these horrible nitwits that want to keep wages low don't seem to grasp this.
Sounds good, but what happens to the adults that can't find anything better than minimum wage jobs? Many of the jobs they fall back on will be harder to get and go to cheaper workers, right?
we dont have resentment. we just think more skiled jobs deserve the high pay. supply/demand
Whose saying that higher skilled jobs shouldn't deserve higher pay? I'm not arguing against supply and demand. But if we're going to have a minimum wage then it has to be at least at the level it was in the 1960's. The cost of living has gone up a lot since then.
Sounds good, but what happens to the adults that can't find anything better than minimum wage jobs? Many of the jobs they fall back on will be harder to get and go to cheaper workers, right?
Young people in the workforce are more unstable. By this I mean, they may work summer jobs or leave employment unexpectedly. Many businesses will prefer adult employees for their reliability and maturity.
The problem isn't minimum wage necessarily.The problem is that there are too many jobs that pay low wages. Anything under $12 an hour is a low wage. You can't qualify for a studio apartment in most cities if you make $12 an hour and work full time. Young people don't need to worry about housing like adults do.
Wages in this country for all kinds of jobs have stagnated and in many some cases decreased. A lot of this has to do with the fact that we've let a lot of "low-skilled" immigrant labor into the country. I know a in-home nurse that makes only $9 an hour. Fed-Ex Ground drivers are making close to minimum wage. Why is this? Immigrants will work for peanuts. I don't want to scapegoat immigrants but its just a reality that they will take less money to do a job. So employers hire them. Why wouldn't they?
I think there needs to be a separate youth minimum wage though. That's how it is in many European countries. If you're under 20 years old the minimum wage could be something like $8.50.
That would put many people 20-30 out of work immediately as employers will favor cheaper workers below 20... there are a huge number of people over 20 working in minimum wage positions.
The key to a strong middle class is not mandating absurd minimum wages but rather focusing on preserving social mobility which is quickly eroding. This country was built on the concept that it was possible to move up the social ladder by working hard. That philosophy is quickly becoming obsolete. Nowadays you need to be well connected to move up otherwise good luck!
Quote:
Originally Posted by Aldous9
The cost of living has gone up a lot since then.
But you're not looking at the other side of the equation... the requirements for our workforce have also changed with automation and new skillsets needed. Unfortunately people have not adapted but rather many have skillsets that are no longer valued or relevant in today's world. The change over the years towards automation has put more value on soft skills and less value on physical labor.
That would put many people 20-30 out of work immediately as employers will favor cheaper workers below 20... there are a huge number of people over 20 working in minimum wage positions.
One would think that it might be a possibility. But often times what we think will happen doesn't actually happen. If you look at where the youth minimum wage is implemented, adult workers are still preferred for their experience. Or often, an employee starts off at a youth wage and then turns 20 years old while on the job and receives the higher wage.
There are a lot of jobs that don't require specialized skills but that require efficiency that can only come from experience. And that's something young people can't offer. So companies would be hurting their bottom line by relying too much on youth workers.
There are a lot of jobs that don't require specialized skills but that require efficiency that can only come from experience. And that's something young people can't offer. So companies would be hurting their bottom line by relying too much on youth workers.
It might hurt their bottom line, but often the short-term bottom line trumps the long-term bottom line. Look at what Circuit City did within a year of completely collapsing. They fired 3400 retail employees, and re-hired new employees at entry-level wages, which they had simultaneously lowered from 8.75/hr to 7.40/hr, solely for the sake of "wage management". Little good it did; the bad publicity from that move ate them alive.
It would be nice to think that there are those noble employers that would keep experienced employees after they turn 20, even if they're more expensive. And there probably would be small business owners who would happily do that. But, in practice, many more employers, especially ones beholden to shareholders, are going to cut costs no matter what.
Last edited by DJDeadParrot; 02-12-2014 at 04:50 PM..
Reason: re-checked numbers
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, and no one is better equipped to determine the proper wage point than the US Free Market.
