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Over 100 posts in this thread and so far nobody has fully identified the root problem. When the root problem is correctly identified, I believe the correct solution is easy to discern. Unfortunately, the correct solution is politically unacceptable, which is why politicians eventually find it easier to accept minimum wage increases.
I believe people these days are protesting for a $15/hr minimum wage - or for higher minimum wages generally - because a critical mass has emerged of adults actually trying to live on minimum wage. Initially, minimum wage was intended for marginalized minorities - the original minimum wage legislation is actually an artifact of our racist past - and with the decline of Jim Crow, teenagers and 'secondary' earners (e.g. seniors choosing to work part time, and stay-at-home moms who went to work part-time once their kids started school) took up minimum wage work.
In 2012, 48.5 percent of minimum wage workers were 25 or older - that proportion surely is higher today and quite possibly over 50 percent.
Someone in this thread did mention that minimum wage workers today are largely adults. But they missed the other element of today's problem.
Simply put, rents today are too damn high. Personal finance geeks and policy wonks recommend paying no more than 30% of your income for housing, but today 11 million renters spend at least half their income on shelter. This is unsustainable long-term.
People are protesting for a $15 minimum wage because they are having difficulty paying the rent, and because paying today's high rents is unsustainable for many.
Building an adequate supply of housing for low-wage workers would cool off most of the protesters. but high regulation, land prices and development fees make it unprofitable to build housing that low-wage workers can afford. NIMBY-minded homeowners make it politically unacceptable for municipalities to encourage opr allow affordable new development. Since expanding supply if politically unacceptable, elected officials find it easier politically to increase minimum wage. Since increasing minimum wage does not resolve the housing shortage, political pressure for higher minimum wages will continue indefinitely - the problem will never be solved in the foreseeable future.
Over 100 posts in this thread and so far nobody has fully identified the root problem. When the root problem is correctly identified, I believe the correct solution is easy to discern. Unfortunately, the correct solution is politically unacceptable, which is why politicians eventually find it easier to accept minimum wage increases.
I believe people these days are protesting for a $15/hr minimum wage - or for higher minimum wages generally - because a critical mass has emerged of adults actually trying to live on minimum wage. Initially, minimum wage was intended for marginalized minorities - the original minimum wage legislation is actually an artifact of our racist past - and with the decline of Jim Crow, teenagers and 'secondary' earners (e.g. seniors choosing to work part time, and stay-at-home moms who went to work part-time once their kids started school) took up minimum wage work.
In 2012, 48.5 percent of minimum wage workers were 25 or older - that proportion surely is higher today and quite possibly over 50 percent.
Someone in this thread did mention that minimum wage workers today are largely adults. But they missed the other element of today's problem.
Simply put, rents today are too damn high. Personal finance geeks and policy wonks recommend paying no more than 30% of your income for housing, but today 11 million renters spend at least half their income on shelter. This is unsustainable long-term.
People are protesting for a $15 minimum wage because they are having difficulty paying the rent, and because paying today's high rents is unsustainable for many.
Building an adequate supply of housing for low-wage workers would cool off most of the protesters. but high regulation, land prices and development fees make it unprofitable to build housing that low-wage workers can afford. NIMBY-minded homeowners make it politically unacceptable for municipalities to encourage opr allow affordable new development. Since expanding supply if politically unacceptable, elected officials find it easier politically to increase minimum wage. Since increasing minimum wage does not resolve the housing shortage, political pressure for higher minimum wages will continue indefinitely - the problem will never be solved in the foreseeable future.
I believe if you go back further, minimum wage was created so that people wouldn't take advantage of kids....not?
Low wage flyover states tend to be highly dependent on federal government assistance (states like KY, AL, KS, etc. get more federal aid than taxes they send to DC).
Elliot, this has been debunked numerous times. That figure includes all Federal spending. NM for example which always sits at the top of these lists by wide margin and leans Democrats. There is numerous very expensive federal facilities there and it has small population. Sandia National laboratories by itself adds something like $1200 per capita in federal spending. The primary beneficiary of what they do there is the entire nation.
Whiteman Air Force Base home of the B-2 is located in Missouri, federal assistance or strategic location?
I-80 that connects San Fransisco to NYC goes through numerous rural states, those states benefit very little from coast to coast commerce on that road.
This is not a good variable for determine anything about federal spending.
Quote:
25.22% of the state's revenue comes from federal funding, which is sixth lowest in the country.
If you live in low tax state and they are collecting $1 per capita in state taxes and the feds are contributing $1 per capita for their budget then 50% of their budget is from the federal government.
If you live in high tax state collecting $2 per capita in state taxes and the feds are contributing $1 per capita to their budget 33%of their budget is from the federal government.
Each state is getting the same thing from the feds, the higher percentage of 50% is driven by lower state taxes.
Liberals want $15. Conservatives want the gilded age back.
No such thing as balance any more.
Even with no minimum wage, automation is coming. Have no idea what we are going to do with the 50% of the population with IQs below 100. You are not going to make a business owner or tech worker out of most of them.
We have a new dine in/take out restaurant by me that is really nice and offers a pretty healthy selection of food. The first thing I noticed when I walked in was that they had about 5-6 touch screen computers facing the customer where you would traditionally place your order, and about 4 people in the back working to actually make the food. Nice big 24" monitors where you just tap a few images and navigate a menu, then swipe your credit card and you are done. The declining expense of technology, increasing aptitude of people to use touch screens and apps, plus the clamoring for high paying but low value jobs is a perfect storm for this type of labor being easily replaced.
For those that say forcing a $15 min wage is a good thing, I'll take you out for lunch to this place one day and you can literally see the error of your ways in front of your eyes while you enjoy a nice tasty, healthy lunch.
I dunno if anyone has heard me say it before, but everything is going the way of East Asia.
I'm in Japan now, and many restaurants have "vending" machines where you place your order and take your ticket to the chef. The workers wear multiple hats, and work extremely hard for little pay (minimum wage in Tokyo hangs around $10 per hour which is bad for one of the most expensive cities in the world).
Furthermore, Asia has ran at a much faster pace than the west, so they know how it all works. It's like a production line everywhere you go. I hate to say it, but I believe this lifestyle is inevitable for the US once we become more globalized and increasingly populated. Only the strongest, smartest, and fastest survive. Miss the buss, and you're out of luck.
With Seattle raising minimum wages in 2016 to $10.50 to $13 (depending on the size and type of business), some analysts predicted jobs would be cut and unemployment would go up. They were wrong: what actually happened is that hiring increased and unemployment fell:
"The unemployment rate in the city of Seattle – the tip of the spear when it comes to minimum wage experiments – has now hit a new cycle low of 3.4%, as the city continues to thrive. I’m not sure what else there is to say at this point. The doomsayers were wrong. The sky has not fallen. The restaurant business, by all accounts, is booming..."
When low wage workers are paid more, they have more money to spend. Local businesses see more traffic, revenue and sales. To meet the demand they hire up.
Red states still stuck at $7.50/hr would be wise to follow Seattle's lead and raise the minimum wage. They will be pleased with the result.
Statistics are fun for confirmation bias.
Salt Lake City currently has its unemployment down to 2.8% with no minimum wage hike. So by that rationale Seattle's experiment is a failure. The doomsdayers were right. This experiment is now over.
What about that store where you take the pizza home and cook it yourself? Marco's? I don't know how much that pizza costs because you have to cook it but call me old-fashioned. I want to pick up a HOT pizza.
Cost at this time is between $6-$12 but that will have to rise if/when wages go to $15. Great Pizza by the way.
Even with no minimum wage, automation is coming. Have no idea what we are going to do with the 50% of the population with IQs below 100. You are not going to make a business owner or tech worker out of most of them.
The conservatives cheering for more automation and displacement of workers are sure going to be pissed when the Basic Income comes to America.
With Seattle raising minimum wages in 2016 to $10.50 to $13 (depending on the size and type of business), some analysts predicted jobs would be cut and unemployment would go up. They were wrong: what actually happened is that hiring increased and unemployment fell:
"The unemployment rate in the city of Seattle – the tip of the spear when it comes to minimum wage experiments – has now hit a new cycle low of 3.4%, as the city continues to thrive. I’m not sure what else there is to say at this point. The doomsayers were wrong. The sky has not fallen. The restaurant business, by all accounts, is booming..."
When low wage workers are paid more, they have more money to spend. Local businesses see more traffic, revenue and sales. To meet the demand they hire up.
Red states still stuck at $7.50/hr would be wise to follow Seattle's lead and raise the minimum wage. They will be pleased with the result.
Wage compression has not yet set in, it will eventually and then we'll see who's crowing/crying...
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