What happens when they raise the minimum wage? (financing, default, loans)
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The naysayers here in this thread are simply quite ignorant of the many issues/hurdles faced by folks who aren't as connected to as many opportunities as they are. This whole eff-ing '1950s pull yourself up by the bootstraps' mentality argument is probably one of the most completely stupid drivel I see repeated online in discussions online like this one. It's like arguing with your grandfather when he forgets a hearing aid
If your point is that some people are economic failures in life, I agree. They are failures. The "why" doesn't matter - maybe it is a string of bad luck, maybe it is a set of poor life choices, maybe it is lack of innate abilities.
At the end of the day, some people are economic failures. Some of them have minimum wage jobs with no ability to move up for any number of reasons, and the reasons are irrelevant. They are economic failures.
Nope. Inflation is just one form of a tax. No one gets a free ride from inflation. Inflation, as with all taxes, is a transfer in spending power from the private sector to the federal government.
The people that get their hands on the money first benefit the most from inflation. The people that get their hands on it last pay the inflation tax.
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Originally Posted by SportyandMisty
No, GDP does not grow faster; it grows more slowly. There will be fewer people employed, fewer new businesses formed, distortions in the efficient allocation of capital, and as a result both GDP and GDP per capita will be lower than they otherwise would be absent the tax on the employers of minimum wage workers and the direct subsidy of those same MW workers.
Distortions in the efficient allocations of capital, result in fewer people being employed, fewer new businesses being formed, and both lower GDP and GDP growth per capita. These are your words.
So we currently have fewer people being employed, fewer new businesses being formed, and lower growth in GDP and GDP per capita. So we currently have a distortion in what would be the efficient allocation of capital.
Do you care to discus the nature of this distortion and what needs to be done to correct it?
If your point is that some people are economic failures in life, I agree. They are failures. The "why" doesn't matter - maybe it is a string of bad luck, maybe it is a set of poor life choices, maybe it is lack of innate abilities.
At the end of the day, some people are economic failures. Some of them have minimum wage jobs with no ability to move up for any number of reasons, and the reasons are irrelevant. They are economic failures.
Sux to be them. Sux to be their dependents.
And you wonder why people who have a choice to work these jobs or take unemployment take unemployment. Why take a job when you get paid barely anything and people think you are a failure because you work there.
And you wonder why people who have a choice to work these jobs or take unemployment take unemployment. Why take a job when you get paid barely anything and people think you are a failure because you work there.
There are many people that started at " crap jobs " and then rose up .
There is some statistic that like 1 in 8 Americans has worked at McDonald's at some point in their lives
Some of those people for now millionaires and some billionaires
Jeff Bezos the guy that started Amazon.com used to work at McDonald's
There are many people that started at " crap jobs " and then rose up .
There is some statistic that like 1 in 8 Americans has worked at McDonald's at some point in their lives
Some of those people for now millionaires and some billionaires
Jeff Bezos the guy that started Amazon.com used to work at McDonald's
True but there are a lot of people who are still working at McDonalds years later or if not McDonalds some other low wage job. Just because some people can move up does not in any way prove anyone can.
There are many people that started at " crap jobs " and then rose up .
There is some statistic that like 1 in 8 Americans has worked at McDonald's at some point in their lives
Some of those people for now millionaires and some billionaires
Jeff Bezos the guy that started Amazon.com used to work at McDonald's
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Originally Posted by jm1982
Yes true, but it proves working at McDonald's isn't a "life sentence"
There are people who actually win the lottery. I wouldn't scold buyers of lottery tickets of why they haven't won even though history shows there were indeed "many people" who have won the lottery. Or how about "I know a friend who got hit by a car and lived". Doesn't mean I'd recommend anybody else doing that.
You didn't prove that McDonalds was a viable career either, nor how every one of them have the means and the capability to rise up.
This is why C-D has numerous threads about why folks should choose better majors. when 1 person in 500 graduates of a certain course of study is doing well, but most of his fellow graduates of philosophy or what not are struggling (hell, even working at McDonalds!), you don't get to correlate how "1 in 8" is a figure that's close 1 in 8 McD workers who are future Jeff Bezos-es.
World wide we've got over supply in oil, corn, iron ore, copper, etc. We don't have enough demand for said commodities. We also have over production capacity in manufactured goods.
What do you mean by over supply? We still have equilibrium pricing - that is, the market has not failed. Investments in technology have lead to shifts in the supply curve (e.g., fracking), but we still have equilibrium.
If you mean that increases in supply have led to new equilibrium pricing that is lower than it once was, that is just how markets work. Companies see profit opportunities and invest... and aggregate supply increases, and then surely as night follows day, prices come down. This is how the free market allocates capital, and this is a very good thing.
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Originally Posted by ContrarianEcon
So everyone says that upping the minimum wage leads to lay offs.
Finally, you and I agree.
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Originally Posted by ContrarianEcon
This reduces supply.
I'm not trying to resurrect our previous discussion on this topic, but just want to clarify terminology.
There are two concepts in economics that sometimes are confused. One is a movement along a stationary supply curve, and the other is a shift in the actual supply curve itself. Economists call the shift a reduction (or increase) in supply. A movement along a stationary supply curve typically is not called that. A movement along the supply curve is typically called a "change in the quantity supplied"
The increase in the minimum wage does not lead to either a decrease or an increase in the supply of labor -- that is, the supply curve itself is stationary. The increase in the minimum wage causes an increase in the quantity supplied.
What causes a shift in the supply curve (that is, either a reduction in supply or an increase in supply)? Immigration, emigration, death and the like.
Last edited by SportyandMisty; 05-06-2016 at 09:59 AM..
It also benefits those wanting to get into the workforce as it tends to drive to full employment.
LOL! You're so funny.
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