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This is bull, and is only spouted out by people who have no concept of basic economics, and their application in perfect competition, and think that their arm chair "laymans logic" is actually applicable to reality.
Here is reality for you, there is absolutely no relationship between historical inflation and raises in minimum wage......why do you think that is? If you cant figure it out, Ill be happy to give you a short economics tutorial.
You do realize less than 5% of hourly workers are making minimum wage and that the history of raises in minimum wage have not greatly outpaced inflation by any means. How much of an effect can you possibly expect from something that mostly keeps pace with inflation and affects a tiny fraction of the work force to have?
You do realize less than 5% of hourly workers are making minimum wage and that the history of raises in minimum wage have not greatly outpaced inflation by any means. How much of an effect can you possibly expect from something that mostly keeps pace with inflation and affects a tiny fraction of the work force to have?
Less than 5% of hourly workers are making minimum wage now. As late as the 1970's, market wage for low wage workers was essentially minimum wage. Unfortunately, a series of jack ass presidents since then allowed minimum wage to erode to the point where it wasnt even relevant.
Previous to the past couple decades, raises in minimum wage should have absolutely had a positive correlation with inflation, if the argument that "raises in minimum wage" will jack up prices. There is no such relationship, never has been, never will be.
Why? Because prices are not set by inputs, they are set by the market in perfect competition. The market would not absorb an immediate price increase, and without significant collusion, other competing firms would meet market demand for substitutable goods at a lower point on the price curve, sometimes even at a temporary loss to increase market share.
There is almost no labor in the price of a movie ticket (at least not of the people working at the theater), and not all that much in the price of a $1 McD value menu item. It might raise the price to $1.25 to pay $12 an hour instead of $8 to your shift workers. Lots of businesses do pay slightly above market rates. In-N-Out pays more like $10-12 an hour rather than $8. They also use a more labor intensive process to prepare the food than McD.
Anyway, wages aren't set to be fair to everyone because some academic in an ivory tower in charge of planning the minute details of every aspect of the economy decided that it is not fair for a McD worker to make $8 and a cardiologist to make $150. Hell, the cardiologist pays as much in med-mal insurance as a half dozen or so McD workers in many cases, plus went through eight years of school and another 7-10 years of residency/fellowships before they started to really make money.
you talk about how there labor costs being raised by paying the guy flipping burgers or guy taking tickets at the movie theatre won't affect pricing. I would disagree with that and say it does affect pricing however your only thinking about the burger flipper and cashier making more money.
if nobody can make $8 an hour that means every step along the way in getting food to mcdonalds gets raised. the farmer who raises the potatoes for the fries has to pay all his people more, the trucking company who ships the product has to pay the guy who sweeps the docks more so they raise the costs of trucking mcdonalds goods, every company and every employee and everything that has anything to do with mcdonalds gets prices raises so its not just paying a cashier a buck more an hour its all those companies doing business with mcdonalds raising their prices as well.
also its supply and deand. if nobody will work for $8 an hour companies will raise their wages. also very fwe jobs actually pay minimum wage its mostly smaller employers. mcdonalds generally pays a couple bucks above min wage as do most fast food places.
Less than 5% of hourly workers are making minimum wage now. As late as the 1970's, market wage for low wage workers was essentially minimum wage. Unfortunately, a series of jack ass presidents since then allowed minimum wage to erode to the point where it wasnt even relevant.
Previous to the past couple decades, raises in minimum wage should have absolutely had a positive correlation with inflation, if the argument that "raises in minimum wage" will jack up prices. There is no such relationship, never has been, never will be.
Why? Because prices are not set by inputs, they are set by the market in perfect competition. The market would not absorb an immediate price increase, and without significant collusion, other competing firms would meet market demand for substitutable goods at a lower point on the price curve, sometimes even at a temporary loss to increase market share.
If by series of jack asses you mean Reagan, I agree. Most of the Presidents did a pretty good job of keeping the minimum wage current with small incremental raises. H.W. Bush increased the minimum wage during his tenure, Clinton increased it his first term but presided over a very slight decrease overall in nominal dollars, Bush increased it by more than $2/hour. Obama is on track to be the only president since Reagan to not increase the minimum wage... so maybe he belongs on that list to. Even if Obama wins a second term and did not raise the minimum wage he still would be a very different second simply because inflation is so much lower now than it was in the '80s.
True, none of them compensated for Reagan, so if that was your expectation then maybe they are all jack asses.
Interesting to note that minimum wage jobs tend to have the highest turnover rates out there. That demonstrates how "hard" people are willing to work for a minimum wage job. The higher the pay, the more likely a person will stay.
What the heck when I was 18 I was making 15 bucks an hour. That was 44 years ago- My family were builders and all had some sort of skill...even if it was digging a ditch....44 years later and someone is making 8 bucks----I would rather live on the street and sleep under a damned bridge than make some chump "making a payroll" turn a profit on what is slave labor...You people are out of your mind...In CANADA a teenage baby sitter can make 16 bucks an hour....These people who want to maintain the status quote by acting as if 8 bucks an hour is worth getting out of be for are liars in denial.....this is a disgrace....Why would you work for such a wage....and what do you really get out of it? Some sort of pride for having a job? It is not a pride - it is a shame.
also its supply and deand. if nobody will work for $8 an hour companies will raise their wages. also very fwe jobs actually pay minimum wage its mostly smaller employers. mcdonalds generally pays a couple bucks above min wage as do most fast food places.
A lot jobs pay min wage here. The more people are unemployed, the more of these low wages are going to be seen. Employers take advantage of people that are desperate out there.
A friend I have that is unemployed tells me that she see's jobs offering to pay $10-$12 for jobs that pre-recession would have at least offered her $18-$20. These are all jobs that require 1 to 2 years of experience and are in the marketing research field. Of course she applies anyway because her unemployment is running out but $10-$12 is certainly not enough to pay her rent, car, food, other living expenses, and her student loans.
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