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I don't think it's unsafe, just not very sensible. In the more expensive areas there will be relatively few people effected by the increase, while in poor areas it will have a drastic effect.
I've watched a documentary on the plight of the poor in England. They did away their minimum wage some time before the documentary. Their bottom end is hurting.
Quote:
Originally Posted by rruff
Normally businesses that produce products for non-local consumption would have an incentive to locate in poorer areas to have an advantage in labor costs. A $15/hr minimum would remove that incentive and probably lead to greater urbanization.
And that is why we should have US minimum wage apply to all things sold in the US not just those made in the US. Then we can raise our minimum wage indiscriminately. Without the incentive to move production somewhere else.
And that is why we should have US minimum wage apply to all things sold in the US not just those made in the US. Then we can raise our minimum wage indiscriminately. Without the incentive to move production somewhere else.
Can't work.
What I stated might occur in poor parts of the US would happen in poor parts of the world by an order of magnitude. Investment in these poor countries would disappear. The only advantage they have is the comparatively low cost of labor. Take that away and you take everything away.
Furthermore it isn't necessary. The US has an advantage in technology and infrastructure, and can easily support higher wages. We don't need to support low tech labor intensive production, we just need to stop boosting the US$ exchange rate. Do that, and the trade gap will close, and everyone will be better off. We'll produce more products and services where we have a comparative advantage.
Good example of minimum wage hikes pushing businesses out of CA
"If I were to stay, it would probably make me a nonprofit within a couple years or so,” said Donnelly."
Good example of minimum wage hikes pushing businesses out of CA
Composite workers making <$15/hr? That's nasty work.
You might have noticed this line in the article you posted: "Airplane parts manufacturers have been leaving Southern California steadily over the years. Employment is down 40 percent since 2004, according to the Los Angeles Economic Development Corporation. Employment in higher-tech aerospace manufacturing was up 64 percent over the same period."
Good example of minimum wage hikes pushing businesses out of CA
"If I were to stay, it would probably make me a nonprofit within a couple years or so,†said Donnelly."
"He says his employees make on average a little less than $15 an hour now – so he would have to give them all a big raise. He said he can’t afford to do that because his company is locked into long-term contracts with customers where the price is already set."
The minimum wage won't be $15 an hour until 2022, so if his employees are making "a little less" than that now, it shouldn't be a problem to raise their wages to $15 in 6 years. I bet the truth is that he can't find people willing to do the work for what he's willing to pay.
Because he realizes they won't be happy with $15 hr by 2022 since $15 will be minimum wage . His employees are going to expect $20 or more and that's where the problem is .
Right now they are making about 50 percent over the minimum wage so in the future they will want 50 percent over the minimum wage .
Speak with an HR recruiter or social worker. They will fill you in on why much of that 'speculation' <ahem> is not far from the reality of the situation.
Does this mean to imply that *all* people who are socioeconomically disadvantaged face the exact same hurdles? No. But much rings true regardless of the stupid 'bootstraps' argument that is presented ad nauseum.
The reason why bootstrap people work is that they have to do it all themselves. They can't assume anyone is going to do it for them. I work with a lot of first generation business owners. They ask me for advice on things. Things that I will know that they won't. I'm trying to put a business together with those that didn't need to bootstrap it, and they are so quick to discount things that need to get done....no, they don't just get done, you have to do them, and plan for them and get them done.
Being smart only helps you to the extent where you can start relying on other smart people. While I said earlier I know nobody on MW, I know plenty that would be unlikely to get anything more than a MW job that have started very successful businesses and now live a good life.
Because he realizes they won't be happy with $15 hr by 2022 since $15 will be minimum wage . His employees are going to expect $20 or more and that's where the problem is .
Right now they are making about 50 percent over the minimum wage so in the future they will want 50 percent over the minimum wage .
huh? You relocate a business because in 6 years employees might want a pay raise? wow, just wow
And yes, businesses generally like to plan ahead or get out soon.
Why would you stay if you know bad things are coming?
See this is the reason why CA is not a good business climate.
Would you really feel confident or secure with that type of political environment?
Business owners are thinking "what's next?"
"This guy ,Jerry Brown was against doing this in Jan ...now in April he signs this ??"
"What will this guy do next?"
You really don't think a lot of businesses will be looking to move to other states if they are able to do so?
States with a more pro business attitude and less giving into the unions ..the unions that want to be exempted from paying the $15 wage themselves?
I haven't found any small business owners that are happy about this. Even the most 'bleeding heart liberal' types that have been paying their employees higher than minimum wage even though they don't have to by law currently.
It's a slap in the face to them.
They are thinking "$15hr..what's next $20,$25?"
What I stated might occur in poor parts of the US would happen in poor parts of the world by an order of magnitude. Investment in these poor countries would disappear. The only advantage they have is the comparatively low cost of labor. Take that away and you take everything away.
You are looking at foreign investment in these developing countries. But these countries have domestic investment as well. They need USD to buy oil with. Because of this they will subsidies their export workers to get it.
Quote:
Originally Posted by rruff
Furthermore it isn't necessary. The US has an advantage in technology and infrastructure, and can easily support higher wages. We don't need to support low tech labor intensive production, we just need to stop boosting the US$ exchange rate. Do that, and the trade gap will close, and everyone will be better off. We'll produce more products and services where we have a comparative advantage.
(If I want to export to the US I will adjust my exchange rate to favor my exports at the expense of the US.) China is famous for doing this. I'm betting the rest do some of it as well.
The way I want to go about doing it is to require us to pay them US minimum wage or higher, not to insist they pay them US minimum wage or more.
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