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While that graphic is funny, it doesn't represent reality. Assume a firm had two employees earning the same, employee "A" and employee "B." If they didn't need A they would fire A regardless of B's wage. However, if they needed A while B got a raise, they wouldn't fire A because they need his/her labor. Thus, the wage change for one employee is not a factor in retention for the other employee.
The Card-Krueger study, not only found that there is no negative effect on employment, if anything, there is a positive effect.
While that graphic is funny, it doesn't represent reality. Assume a firm had two employees earning the same, employee "A" and employee "B." If they didn't need A they would fire A regardless of B's wage. However, if they needed A while B got a raise, they wouldn't fire A because they need his/her labor. Thus, the wage change for one employee is not a factor in retention for the other employee.
The Card-Krueger study, not only found that there is no negative effect on employment, if anything, there is a positive effect.
In 1968, the inflation-adjusted minimum wage was $10.25. $25.00/hour would be a problem. $10.00 didn't cause mass firings 50 years ago and it won't now.
Personally, I have never hired anyone for low wages like that. Anybody only worth $10.00/hour is going to totally suck at their job and need to be watched like a hawk. My time is far too valuable to be supervising low quality people doing work for me. Around me, high school age babysitters get paid more than that.
In 1968, the inflation-adjusted minimum wage was $10.25. $25.00/hour would be a problem. $10.00 didn't cause mass firings 50 years ago and it won't now.
Personally, I have never hired anyone for low wages like that. Anybody only worth $10.00/hour is going to totally suck at their job and need to be watched like a hawk. My time is far too valuable to be supervising low quality people doing work for me. Around me, high school age babysitters get paid more than that.
I can't comment on the second paragraph. But there are positive macro economic effects, such as putting more money in the hands of people who have a high propensity to consume.
Again, we've villanized anything that takes better care of America's workers, who, again, are also consumers. 70% of US economy. Need more examples? Note all of the hand-wringing over oil prices right now...Meanwhile, all of us going to work and making a wage for our labor are enjoying the fruits of much lower gas. Not a bad thing.
Its because of inflation. Too much money out there chasing too few goods. All you have to do is look at the empty shelves to know its inflation.
I always wondered why they weren't blocking the streets with pallets of hundred dollar bills during the protests...There is just too much money. We don't want it all. We are being smothered with it.
too much debt not enough income.
Global economy. GWP. Move a job from a $20 hr job market to a $1 a day job market and GWP goes down by the difference. Unless you paper over the difference with new debt. Debt bubble. Upping wages balances debt to income. Not here but in the lower value labor markets. Pump them up to US minimum wage and then those dollars out there have demand for them.
How about all the jobs being moved to the United States from other countries. Mostly higher wage jobs. Just on industry is the auto industry. Only 2 auto companies are American Owned, but there are 11 foreign owned auto companies in the USA. More autos are being built by foreign owned companies, than by American owned companies.
And that is just a tip of the iceberg. Many industries have foreign owned manufacturing plants in the U.S. all hiring American workers. Here is a list which is not up to date, of companies with their home country shown, that have facilities in the USA hiring our citizens to work for them.
Though the shift to online shopping is no doubt playing a role in lighter foot traffic at malls, there's more to their changing economics than the rise of Amazon. Changing demographics in a town are another reason a shopping center could struggle or fail — for example, if massive layoffs in a particular industry cause people to move away to find employment.
"A lot of people want to try and tie it to the Internet or 'that's not cool,' or teens don't like it," Jesse Tron, a spokesman for industry trade group International Council of Shopping Centers, told CNBC last year. "It's hard to support large-format retail in those suburban areas when people are trying to just pay their mortgage."
Not saying that this is necessarily an indication of recessionary times to come, but...
War on durable goods?
Ford just posted record profits.
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