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No, that is the Laws of Economics and Supply & Demand in action.
It is not the Supply & Demand of every warm body on Earth, rather it is the Supply & Demand for a given Skill-Set in a specific Labor Market....and there 1,539 separate Labor Markets within the united States.
The Skill-Set includes things such as wisdom, leadership ability/potential, experience, loyalty, good-will, longevity, maturity, education and training, in a addition to other skills.
Sorry, but health plan coverage has not been based on risk-analysis and actuarial science since 1954.
Right, because the risk of a man giving birth is the same as that of a woman, right?
Don’t you think women should be screened for testicular cancer on a regular basis?
That isn't necessarily true, but thanks for alerting the 6 Billion people on the internet that you don't understand Economics.
Your argument fails, because it is not predicated on logic and reason, and most certainly not based on Economics.
Wage Inflation was first observed and documented by Adam Smith, and he did so in his treatise On the Wealth of Nations.
Today, it would be more accurately described as Wage-induced Price Inflation, as opposed to true Wage Inflation. The US has experienced two periods of Wage Inflation, the first occurring during the Great Depression. In 1938, as the US began to ramp up the production of war materiel, there was an extreme shortage of Labor with certain Skill-Sets. For example, a ship-builder in Philadelphia, ran out of Labor: there were no more qualified people to hire with the needed Skill-Sets. He was forced to open another facility in South Carolina, where that Labor Market had the needed Skill-Sets in greater supply. As the draft started in 1942, it only aggravated and worsened the situation.
Understand the problem, which is that even though it is only the wages for a small number of workers with certain Skill-Sets that are increasing, it still causes the prices of all goods and services to rise.
The banker, the bank teller, the guy who sweeps the floors, the guy who delivers your coal, the guy that delivers your block of ice, the milk-man, the diaper-man, the people who work at the groceries, markets and restaurants, their wages are not rising, so they get priced out.
Wage Inflation occurs again in the late 1960s/early 1970s.
The cause here is the trickle-down technology from the nuclear weapons programs and NASA’s Gemini, Mercury and Apollo space programs are entering the market. You have new diagnostic equipment in the medical field, new machining and milling equipment in the industrial field, and main-frame computers being installed everywhere.
There are few workers who can operate or maintain this equipment. Those who can are paid well-above premium wages.
The situation with your main-frames gets so critical, that the “federal” government starts offering money to the States to teach/train key-punch operators in high school in order to increase the Supply to meet Demand.
Again, a small group are experiencing rising wages which drives up the prices of goods and services. The doctors, nurses, bankers, bank tellers, truck drivers, plumbers, mechanics, car dealers, clerks, lawyers, accountants, janitors and others are getting priced out.
Nixon levies a Wage & Price Freeze to stop it.
But that isn’t what Adam Smith witnessed.
What he observed repeatedly is that around the various factories and mills, when workers got pay raises, the prices of goods and services in the shops, taverns, markets and pubs around the area raised their prices.
This phenomenon has been well-documented in the US. There are literally hundreds of monographs, and dozens and dozens of case studies on it.
Whether raising the minimum wage at either the “federal” or State level has a negative impact depends on which one of the 1,539 separate economies you are examining, and even which Skill-Set you’re looking at.
In the Cincinnati MSA, raising the “federal” minimum wage would have no impact on the fast-food industry, since fast-food workers already start at $9-$10/hour with raises at 6 and 12 months.
But in the warehouse industry, it would be devastating.
Those workers start at $7.25-$8/hour. Warehouses will close and move to Lexington, Louisville, Dayton, Indianapolis or elsewhere, or simply close and consolidate an existing operation.
I'm still waiting for any Liberal to explain how increasing the "federal" minimum wage makes the US more globally competitive.
Already know you don't have an answer...
Mircea
Best post on the subject!
I have long believed that the raising minimum wage is the main reason that companies moved their operations elsewhere.
I have long believed that the raising minimum wage is the main reason that companies moved their operations elsewhere.
Thanks to the liberals!
Or it has become extremely easy for companies to ship manufacturing jobs overseas to countries that have weak regulations and allow for extremely low pay that basically creates sweatshop conditions....oh, if only the US would be more like 3rd world countries and allow sweatshop conditions, that will surely cure the middle class problems.
If rentals and houses are not the same (???), a rental is an inferior good which costs more than the superior good for which it is a substitute.
Why should someone get less while paying more?
If you choose an inferior good, and choose to pay more, why do you think its my job to stop you? Thats like suggesting you shouldnt be allowed to buy a Jaguar, because some other brand might be better and cost less..
What can I summarize from an individual who makes a choice, and then whines about it non stop? That they are immature and not capable of taking care of themself? Sure sounds like it.
Because somehow that makes them second rate citizens. Should we go back to the era of landowners voting, and women and black are only considered half a vote. Seriously, I stopped reading the rest of your post after you made that dumb comment.
No, it comes down to taxation without representation. Let's say everyone gets one vote by being a citizen, whether they pay taxes or not. Now, the person actually paying taxes is taxed without representation, because they only get that 1 vote.
No, it comes down to taxation without representation. Let's say everyone gets one vote by being a citizen, whether they pay taxes or not. Now, the person actually paying taxes is taxed without representation, because they only get that 1 vote.
Getting a vote is called representation. That is the point. Just because you don't like that some people don't pay taxes doesn't mean they are less of a citizen than you.
You can't even solve your own financial problems, and you expect people to believe that you've found a "solution" for low skill / low wage employment?
Yeah, ok.
LOL, sounds my SIL. She tried to talk a relative into allowing my SIL to invest for her. When the relative reminded her that my SIL was verging on bankruptcy, and despite not having a mortgage payment and 2 good incomes for over 20 years, my SIL was heavily in debt, my SIL's reply was that she was good with other people's money, just not her own.
Or it has become extremely easy for companies to ship manufacturing jobs overseas to countries that have weak regulations and allow for extremely low pay that basically creates sweatshop conditions....oh, if only the US would be more like 3rd world countries and allow sweatshop conditions, that will surely cure the middle class problems.
There are many things to consider when selecting a place for the business to operate. Government regulations, labor market (both cost and quality of the labor), culture, and infrastructure are among them, and everything has a cost.
Would you open a factory in Afghanistan or Somali since there's no regulation and you can pay them really cheap? The cost of doing business there is just too high, surprisingly with no regulation, no tax and cheap labor!
You see the labor cost and regulation aren't the only consideration but if the labor cost rises so much that it outweighs the cost of doing business in another relatively safe and stable country, then why not?
Getting a vote is called representation. That is the point. Just because you don't like that some people don't pay taxes doesn't mean they are less of a citizen than you.
Remember that the next time you whine about things like Citizens United..
So what kind of work experience does one expect from an entry level minimum wage position that they don't require now? Remember, minimum wage has gone up before and this excuse has been used before, yet I bet you can still walk into a fast food place and get a job with no experience.
Fine. Set the minimum wage at $50/hr then? Or, how about $300/hr? Why not? See what happens.
At $15/hr, many so called "entry level" jobs will disappear. We used to have gas station attendants fill our tanks. What happened to them?
Besides, when the minimum wage goes up, everyone above that level expects a corresponding increase in pay. And why shouldn't they have it?
So, what happens to the price of the product or service? Costs have just gone up. Logically, price should go up. That could easily mean that fewer people will want that product at the new higher price. Therefore, sales go down, less is produced, and in some cases layoffs will result.
More than likely, however, before a manufacturer lets that happen, the minimum wage jobs will be eliminated. Guess what ... fewer jobs for the not-so skilled seeking "entry level" positions.
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