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I can't help but think how bad this $15 an hour mini wage is going to be. Imagine being someone who has slowly worked their way up in a company through increased responsibilities and dedication and they are now making $15 per hour and proud of it. Overnight all their hard work and accomplishments are for nothing because some Joe coming in off the street will now be making the same money and to add insult to injury the guy that worked his way up now has to train this new hire.
Of course the dedicated worker could receive a raise but it is a small company and they are trying to make ends meet as it is.
The same sentiment can be felt when it comes to illegal immigration and amnesty. There are so many immigrants who came to America through dedication a bit of luck and following the rules now the Gov. is talking about amnesty for millions of illegals.
What a slap in the face of both parties.
Being a small business owner I just don't see how someone coming in off the street with no skills can be worth $15 per hour. I see layoffs and hiring freezes coming soon and the people who just received the big pay boost will be asked to do more to earn that extra pay. Some are not capable of it.
Why does our Gov. come up with these "good ideas" like $15 mini wage and amnesty when both ideas simply do not make any economical sense?
If you look at California's minimum wage history, this most recent one is only moderately more aggressive than prior ones, and not as aggressive as pre-1970s MW increases. https://www.dir.ca.gov/iwc/MinimumWageHistory.htm It actually has risen MORE than 50% in the past - in fact it doubled from 1943-1952 (9 years), doubled again from 1952 to 1968 (14 years), doubled again from 1968 to 1980 (12 years), doubled again 1980-2001 (21 years). So we have PLENTY of history of HIGHER percentage minimum wage increases that did not cause the end of the world.
When the $15 minimum wage goes completely into effect in 2022 - it will have doubled from its 2007 level. That's 15 years - completely in line with prior increases. It is only an aggressive increase compared to the 1980-2000 period. All California is doing is going back to what it used to do.
This is only catching MW workers with where they should have already been. Looking at the history, the better question is why did the state slow down MW increases beginning in the 1980s?
First wage compression and higher unemployment, then inflation so we end up more or less back where we were. Except maybe some more unemployment due to automation.
First wage compression and higher unemployment, then inflation so we end up more or less back where we were. Except maybe some more unemployment due to automation.
If this were true, then unemployment should have a direct linear relationship with past minimum wage increases. In other words, unemployment should always go up as wages go up, but this is not the case.
I can't help but think how bad this $15 an hour mini wage is going to be. Imagine being someone who has slowly worked their way up in a company through increased responsibilities and dedication and they are now making $15 per hour and proud of it. Overnight all their hard work and accomplishments are for nothing because some Joe coming in off the street will now be making the same money and to add insult to injury the guy that worked his way up now has to train this new hire.
You are wrong.
We already have a big and very recent thread about the MW, and dozens of others that are pretty fresh. I suggest you read those first.
If you look at California's minimum wage history, this most recent one is only moderately more aggressive than prior ones, and not as aggressive as pre-1970s MW increases. https://www.dir.ca.gov/iwc/MinimumWageHistory.htm It actually has risen MORE than 50% in the past - in fact it doubled from 1943-1952 (9 years), doubled again from 1952 to 1968 (14 years), doubled again from 1968 to 1980 (12 years), doubled again 1980-2001 (21 years). So we have PLENTY of history of HIGHER percentage minimum wage increases that did not cause the end of the world.
You are totally ignoring inflation, and the fact that those increases were national increases. National increases are less harmful because they can be inflated away.
What you should look at is minimum wage relative to average wages, and then you will notice that the increases are unprecedented.
You are totally ignoring inflation, and the fact that those increases were national increases. National increases are less harmful because they can be inflated away.
What you should look at is minimum wage relative to average wages, and then you will notice that the increases are unprecedented.
I'm not ignoring inflation at all. Until circa 1980, the minimum wage did track inflation relatively well. After 1980, it did not. If you think that is incorrect, post the median wages during those periods and prove me wrong. From what I see - the ratio of average wage to minimum wage was about the same in the 1950s as it is today. Average hourly wage in CA in 1952 was about $1.60. They raised minimum wage to $0.75 that year. Today, mean hourly wage in CA is $26.57. A minimum wage of $10.00 to average wage of $26.57 is a worse ratio than that. They're raising the minimum wage to $15.00 by 2022 - when the average wage will probably be pushing $30.
In case you didn't know, there has been inflation since the turn of the 21st century. Cost of living has not been flat for the past 16 years. Why should wages remain flat?
Last edited by redguard57; 04-02-2016 at 08:16 PM..
I can't help but think how bad this $15 an hour mini wage is going to be. Imagine being someone who has slowly worked their way up in a company through increased responsibilities and dedication and they are now making $15 per hour and proud of it. Overnight all their hard work and accomplishments are for nothing because some Joe coming in off the street will now be making the same money and to add insult to injury the guy that worked his way up now has to train this new hire.
Of course the dedicated worker could receive a raise but it is a small company and they are trying to make ends meet as it is.
The same sentiment can be felt when it comes to illegal immigration and amnesty. There are so many immigrants who came to America through dedication a bit of luck and following the rules now the Gov. is talking about amnesty for millions of illegals.
What a slap in the face of both parties.
Being a small business owner I just don't see how someone coming in off the street with no skills can be worth $15 per hour. I see layoffs and hiring freezes coming soon and the people who just received the big pay boost will be asked to do more to earn that extra pay. Some are not capable of it.
Why does our Gov. come up with these "good ideas" like $15 mini wage and amnesty when both ideas simply do not make any economical sense?
Higher min wage = less people on welfare and/or gov assistance saves billions, mothers and fathers able to support their children without having to work 16 hours a day, less reason for crime, and so on.
Trained people that accept $15 /hr aren't doing themselves much of a favor. That wage is what trained people don't realize is a pittance to what they could have been making all along. Blame the companies you work for, grossly underpaying you!
I'm not ignoring inflation at all. Until circa 1980, the minimum wage did track inflation relatively well. After 1980, it did not. If you think that is incorrect, post the median wages during those periods and prove me wrong.
I can easily prove you wrong. Here can you see real minimum wage. From 1955 to 1980 minimum wage followed inflation. From 1980 to 1990 minimum wage dropped, and then California has increased minimum wage to $10, which is equally high as the previous peak. Thats fine, but massively increase it above the previous peak do not look sustainable.
Quote:
From what I see - the ratio of average wage to minimum wage was about the same in the 1950s as it is today. Average hourly wage in CA in 1952 was about $1.60. They raised minimum wage to $0.75 that year. Today, mean hourly wage in CA is $26.57.
You can't compare yourself to the 50s, when most people didn't have formal jobs. Secondly you are using the wrong statistics, what really matters is median wage which is $19 in California. http://www.bls.gov/oes/current/oes_ca.htm#00-0000
$15 is very high compared to the median hourly wage.
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You are wrong. 
