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The best economy is one in which there are many middle wage jobs. Not a few well paid and a bunch minimum wage. That is middle ages stuff.
It's also an economy where our trade is at least neutral. Germany has high wages and a high standard of living yet their economy is excellent - because they have a net positive trade imbalance. More money comes into Germany than leaves it. This makes the citizens richer at the detriment to the rest of the world.
That's fine, Germans are very smart people and work hard.
America enjoys a HALF TRILLION DOLLAR negative trade imbalance. America used to have a net positive trade imbalance as well. It made our middle class what is used to be (50's/60's). That is a giant sucking black hole on our economy.
Did you know 1:10 households in the US have over a million in assets? That's quite a bit of households. However the rest of the 9:10 have very little if anything to their names. It's very said.
I'm perfectly fine not increasing min wage. It's an artificial crutch that hides the real problem (too much labor and not enough jobs). Fix the trade imbalance and the min wage issue will solve itself. Yet just like healthcare, no politician wants to touch the trade imbalance because it means prices will rise.
PS I've been preaching about the trade imbalance for almost a decade. Has nothing to do with Trump.
If we really are truly concerned about the plight of the low wage community, we need to be more aware about the policies of where we shop. In the Hickory are, market forces are preempting minimum wage: McDonald's has gone to $8-8.50, the Wendy's across the street is now $8.50. Most retail department store chains are going $10, even Sheetz advertises $8.50 with an automatic raise to $9 after 90 days. I get $11 at my retail job, it is plenty to cover my mortgage on my 12 year old ranch on 5 acres and allow me a nice low milage Buick and covers my budget just fine. Now, my point here is, if you really care, there are some companies whose policy is to NEVER, NEVER go past minimum, let's make a list.
If we really are truly concerned about the plight of the low wage community, we need to be more aware about the policies of where we shop. In the Hickory are, market forces are preempting minimum wage: McDonald's has gone to $8-8.50, the Wendy's across the street is now $8.50. Most retail department store chains are going $10, even Sheetz advertises $8.50 with an automatic raise to $9 after 90 days. I get $11 at my retail job, it is plenty to cover my mortgage on my 12 year old ranch on 5 acres and allow me a nice low milage Buick and covers my budget just fine. Now, my point here is, if you really care, there are some companies whose policy is to NEVER, NEVER go past minimum, let's make a list.
I made $10/hr in 1999 working in the back of a grocery store in receiving. It was in a (fairly) low cost of living area of the country with low taxes (no state income tax, no sales tax).
Adjusted for inflation that is almost $15/hr (!).
Here's the kicker. I was in 10th grade! High school! I had zero bills except paying gas for my car, which cost $13 to fill up at the time (gas was well under $1/gal). I made $350/week after taxes. I saved a lot of money!
So yes, it's true not a ton of people actually make 'min wage'. But even a few dollars an hour more isn't really that much in the big scheme of things.
But really it's all just a distraction. The biggest issue we face is too much labor chasing too few good jobs.
FIX THE TRADE IMBALANCE and all the other issues will sort themselves out. You won't need min wage laws because people will be able to leave their job and bring their experience to another employer. It's happening now in the lower rings of my industry. Starting pay has gone from the low-$20,000 range to upwards of $60,000 in less than two years due to a lack of supply of labor.
California restaurants are closing or people just don't frequent them as much because people won't pay the increases in prices to offset the hike in minimum wage. Tips have also gone down quite a bit. A cheese steak sandwich here is now $15!
Crime pays better than a lot of minimum wage jobs. The ghetto kids pulling in $500 a night, selling drugs to rich suburban kids are not going to care whether Mickey D's is paying $10 or $15 an hour.
California restaurants are closing or people just don't frequent them as much because people won't pay the increases in prices to offset the hike in minimum wage. Tips have also gone down quite a bit. A cheese steak sandwich here is now $15!
I don't tip when I eat in CA. I always do pickup though. I also try to eat at grocery stores more often. I think you can blame the high costs in CA on many things not just higher wages. Labor is generally a minority component in business' operating costs out there. Lots of red tape, taxes, property costs/rent, a very unfriendly business state.
The best economy is one in which there are many middle wage jobs. Not a few well paid and a bunch minimum wage. That is middle ages stuff.
It's also an economy where our trade is at least neutral. Germany has high wages and a high standard of living yet their economy is excellent - because they have a net positive trade imbalance. More money comes into Germany than leaves it. This makes the citizens richer at the detriment to the rest of the world.
That's fine, Germans are very smart people and work hard.
America enjoys a HALF TRILLION DOLLAR negative trade imbalance. America used to have a net positive trade imbalance as well. It made our middle class what is used to be (50's/60's). That is a giant sucking black hole on our economy.
Did you know 1:10 households in the US have over a million in assets? That's quite a bit of households. However the rest of the 9:10 have very little if anything to their names. It's very said.
I'm perfectly fine not increasing min wage. It's an artificial crutch that hides the real problem (too much labor and not enough jobs). Fix the trade imbalance and the min wage issue will solve itself. Yet just like healthcare, no politician wants to touch the trade imbalance because it means prices will rise.
PS I've been preaching about the trade imbalance for almost a decade. Has nothing to do with Trump.
I've never heard this theory. Can you tell me more? I agree that there seems to for more labor than available work. And the barriers of entry to industry make it a challenge for entrepreneurs to create jobs.
I believe no American should have to make a choice between buying medication or food, but I know some folks who do just that. That just doesn't feel very patriotic or Christian, IMO. You bring up a good point about Germany. I know they pay a significant portion of their incomes in taxes. They have less disposable income than Americans. However, if you think about how much education and healthcare debt increases inequality in the US thus destabilizing the economy, does it really matter? I mean if I could get a quality education and healthcare from higher taxes, what's so wrong with that if it works. I find that countries with strong social safety nets are often far less populated and far more homogeneous than America.
Crime pays better than a lot of minimum wage jobs. The ghetto kids pulling in $500 a night, selling drugs to rich suburban kids are not going to care whether Mickey D's is paying $10 or $15 an hour.
Don't forget about the rural kids cooking meth to make ends meet, as well. Those folks aren't in an area where the minimum wage is likely to get any where near $10 or $15 a hour.
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