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... Anyone who thinks an artificial $15 minimum wage will have no impact on the the price of goods and services does not have an understanding of basic economics. ...
Not quite right. Rising wages can only push prices up if wages go up faster than productivity. Productivity has been increasing over the last several decades as computers, robots and technology help workers make more stuff per hour. Over the last several years the trend for wages has been flat. Together these two trends -- rising productivity and flat wages -- means there is slack in the economy that wages could be increased without triggering much inflation. And since we are teetering close to deflation, even if rising wages nudged inflation a little higher it would be healthy for the economy.
People have a problem with minimum wage being $15, but they have no problem with executives of failing companies receiving six-figure bonuses
What? This is ridiculous on so many levels.
First of all who are these people you're referring to? Maybe you can name one of the posters who has no problem with executives of failing companies receiving six figure bonuses. Should be easy, since "people" must have stated that opinion.
Secondly you're comparing a government mandated minimum to something discretionary, as if anyone believes there should be a law requiring six figure bonuses.
What I am implying is that Seattle's unemployment remains at a 7-year low despite raising wages. This refutes the theory that raising minimum wages automatically increases unemployment.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by Elliott_CA
No, I did not imply that raising the minimum wage caused Seattle's unemployment rate to go down.
What I am implying is that Seattle's unemployment remains at a 7-year low despite raising wages. This refutes the theory that raising minimum wages automatically increases unemployment.
No, actually the layoffs of minimum wage workers are real, the unemployment rate remains low because of new, high paying jobs that are balancing off the net rate. In our case for example, a dozen or so new positions filled in the last year, in the $80-120k range. Amazon continues to hire more high pay tech workers, as does Microsoft despite their recent layoffs.
We just ran through eight western states and even in the so-called quiet backwaters eating out was EQUIVALENT to CANADA, where wages, taxes, property and government permits, sourcing of supplies and food is MUCH, MUCH HIGHER. SO 15. an hour does have me scratching my head a little in the hospitality industry, not including tips. And Americans tip well; Canadians, not so much.
Where do hospitality costs in the USA come from NOW? Why is dining out in the US so expensive everywhere we went? The hotel rooms were a price gift, and no other "costs" were anywhere near the price we pay where we live in Canada. And we pay, and pay, and pay.
This is a great example of how statistics can be used to mislead.
A seven year low, which would be seven years since the great recession. The unemployment rate for the entire country is 5.1%, which is... wait for it... a seven year low. So you're implying a relationship between Seattle's seven year downward trend in unemployment rate (that mirrors the rest of the country's trend) and a change to min wage that just started being phased in in April 2015.
Wyoming and Georgia have the lowest state min wages in the country. OMIGOSH! Their unemployment rates are at a seven year low! Let's all go draw conclusions based on the seven year trend.
I can't rep your post, so I'll just say great post.
Why $15/hr.? How was that calculated or was that figure just grabbed out of the air? Why not $20/hr.? $30/hr.?
It was chosen to be believable. In order to garner support, proponents needed to organize minimum wage earners into larger protests, generate PR, and lobby the legislative bodies.
If the proponents lobbied for too high a number, the minimum wage earners wouldn't believe it and would fail to join the rallies. Too low a number and they wouldn't get out of bed.
There is no justification for $7.50/hr federal minimum wage anywhere in the USA. It is too low. It increases poverty and reliance on government assistance. Just to bring the $7.50 minimum up to the purchasing power that the minimum wage used to have it needs to be raised to $10.10/hr.
If flipping hamburgers is your "goal in life" than impoverished is where you belong. That's a fact of life. So what's your point?
I will say though, that purchasing a good or service paying that unskilled person $15/hr (or any "minimum wage") is a choice. You can take your business elsewhere. Unlike taxes, you aren't forced to pay that welfare.
Last edited by TwinbrookNine; 11-05-2015 at 09:39 AM..
If flipping hamburgers is your "goal in life" than impoverished is where you belong. That's a fact of life. So what's your point?
The point is this: in an unbalanced economy, when supply exceeds demand, sometimes raising wages stimulates the economy as a whole and we all benefit. This is one of the times. Far too many people believe in these two truisms:
Raising the minimum wage increases unemployment and hurts job creation.
Raising the minimum wage ignites inflation.
Under some economic conditions these two assertions are true. Under the current conditions, they are not.
Having lived in OZ for over 2 years (Adelaide, SA) it is high because the COST OF LIVING is very high!!
Maybe the 2 are related??
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