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Seems to me that costs for basics like rent, groceries, and clothing would rise to chase toe “new” dollars, but actual low-wage services might rise a bit less. A good chunk of the raise might be thus negated? I don’t know, that’s just where my mind goes.
Seems to me that costs for basics like rent, groceries, and clothing would rise to chase toe “new” dollars, but actual low-wage services might rise a bit less. A good chunk of the raise might be thus negated? I don’t know, that’s just where my mind goes.
JCP123, How inflationary is the federal minimum wage rate?
Labor is only a portion of aggregate products' costs; (this is true even among service products).
Food prices reflect the labor costs of low-wage crop pickers and cashiers, middle-wage truck drivers, and processing plant supervisors, and high priced corporate executives. They also reflect the financial cost of investment, maintenance, upgrading costs for farmland, infrastructure, machinery.
Lower-rate labor costs reflect the difference between the definite minimum rate, and labor's theoretical indefinite market rate advocated by opponents of government's minimum wage rate. That's a greater portion of lower, a much lesser portion of middle, and an almost unperceivable portion of higher rate labor.
Rent or mortgage payments or other financial product costs reflect extremely little proportion of labor costs, and little proportion of those costs are lower or middle-wage rate costs.
If wages of low-end workers is a function of profitability, would you be okay with their wages going down if the company is losing money or does it just work in one direction where a company should be raising wages during times of profitability but keeping them the same when revenue is less than expenses ?
I am not in favor of subsidizing a company's workforce. There are many strategies to deal with unprofitable companies, which can be sold off, broken up or restructured.
Seems to me that costs for basics like rent, groceries, and clothing would rise to chase toe “new” dollars, but actual low-wage services might rise a bit less. A good chunk of the raise might be thus negated? I don’t know, that’s just where my mind goes.
Food and clothing are far cheaper than they used to be. Rent is rising rapidly in areas of population growth, stagnant in less popular areas. None of them are affected by minimum wage levels.
If wages of low-end workers is a function of profitability, would you be okay with their wages going down if the company is losing money or does it just work in one direction where a company should be raising wages during times of profitability but keeping them the same when revenue is less than expenses ?
Quote:
Originally Posted by Larry Caldwell
I am not in favor of subsidizing a company's workforce. There are many strategies to deal with unprofitable companies, which can be sold off, broken up or restructured.
Larry Caldwell, if you understood what Lieqiang meant by the phrase “wages of low-end workers is a function of profitability” means, apparently your understanding of the English language is superior to mine.
How did you conclude he was posting in regard to purchasers subsidizing sellers or producers other than to the extent that we assume we're paying for what we purchase? I considered Lieqiang's phrase as meaningless.
Quote:
Originally Posted by Larry Caldwell
Food and clothing are far cheaper than they used to be. Rent is rising rapidly in areas of population growth, stagnant in less popular areas. None of them are affected by minimum wage levels.
Currency inflation is the general increased product prices, and all of our price increases contribute to inflation of our dollars. But we do agree that the minimum wage rate's much less a cause, and much more a victim of the dollar's purchasing power's losses.
NJ Brazen, I suppose your complaint is the cost of public assistance.
You advocate eliminating or continue reducing the minimum wage rate's purchasing power. That purchasing power reduces the incidences and extents of poverty among the working poor and their dependents.
Your prescription is increasing the severity of the illness you claim to be remedying.
Eliminating the minimum wage rate or continuing to permit the loss of its purchasing power is net detrimental to our economy and it particularly increases poverty among our working poor.
Why will it affect purchasing power? Even if you increase it will not increase monetary inflation unless the owners are taking out loans from banks, which create money out of nothing will it increase monetary inflation.
If owners paying out of own pocket then is not inflationary.
Why will it affect purchasing power? Even if you increase it will not increase monetary inflation unless the owners are taking out loans from banks, which create money out of nothing will it increase monetary inflation.
If owners paying out of own pocket then is not inflationary.
NJ Brazen_3133, the rate of inflation increase that could possibly be due to a minimum wage rate increase, can only be a fraction of lower and middle-wage rate employees' increased purchasing powers due to the rate increase. The federal minimum wage rate has always been of net benefit to USA's economy and the extent of that benefit is dependent upon the purchasing power of the minimum rate.
"We all do better when we all do better".
Quote:
Originally Posted by Supposn
How inflationary is the federal minimum wage rate?
Although labor contributes a substantial portion, labor is only a portion of aggregate products' costs; (this is true even among service products). The federal minimum wage rate effects Low-wage labor and has extremely little proportional effect upon higher wage rates, it is not among the primary causes of U.S. dollar's losses of purchasing power.
The federal minimum wage rate's purchasing power's much less a cause and much more a victim of U.S. Dollar's inflation.
Federal minimum wage rate's purchasing power's purpose is to reduce incidences and extents of poverty among USA's working-poor.
Quote:
Originally Posted by Supposn
Larry Caldwell, ... Currency inflation is the general increased product prices, and all of our price increases contribute to inflation of our dollars. But we do agree that the minimum wage rate's much less a cause, and much more a victim of the dollar's purchasing power's losses.
Last edited by Supposn; 08-15-2019 at 02:13 AM..
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