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Old 12-28-2019, 05:06 PM
 
Location: Macon, Georgia
693 posts, read 291,766 times
Reputation: 474

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Wow. That's like half of the country.
https://www.cnn.com/2019/12/28/us/mi...rnd/index.html
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Old 12-29-2019, 11:31 AM
 
3,823 posts, read 1,064,175 times
Reputation: 6785
This will be an interesting real-time experiment.

Economic theory is clear: raising the minimum wage has the following effects:
  • The total number of low-end jobs decreases, as the minimum wage is above the market clearing wage.
  • Many formerly employed low-end employees lose their jobs.
  • Many hope-to-be employed low-end employees enter the job market for the now-higher wage only to find no one will hire them.
  • Those low-end employees who keep their jobs will have larger paychecks.
  • Prices at the margin go up

We'll get to see how much of the above actually happens in the real world.
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Old 12-29-2019, 12:12 PM
 
6,571 posts, read 2,399,266 times
Reputation: 8321
Quote:
Originally Posted by RationalExpectations View Post
This will be an interesting real-time experiment.

Economic theory is clear: raising the minimum wage has the following effects:
  • The total number of low-end jobs decreases, as the minimum wage is above the market clearing wage.
  • Many formerly employed low-end employees lose their jobs.
  • Many hope-to-be employed low-end employees enter the job market for the now-higher wage only to find no one will hire them.
  • Those low-end employees who keep their jobs will have larger paychecks.
  • Prices at the margin go up
Huh? Economic theory is not clear by any means on this topic. Economists have different views and there is no consensus. Some say raising the MW is contractionary, others say it is stimulative.

The experiment in raising the minimum wage has already been done. Here are the results:
  • California's minimum wage was $8.00 in 2013 while the unemployment rate was 8.4%
  • California's minimum wage is $12.00 now (going up to $13 in three days) and the unemployment rate is now 3.9%.
That's a 50% hike in wages in 6 years and during that time unemployment was cut by more than half.
This real world data proves that raising wages does not necessarily cause a loss of jobs.

As to your other point on inflation, there is moderate inflation but not enough to suggest a strong link to a 50% increase in minimum wage. Granted, there has been massive asset price inflation in real estate, but that's not due to minimum wages by any means. Those workers aren't buying houses.

In the current economy we have a surplus of excess capital at the top while at the bottom we have a shortage of aggregate demand caused by stagnant wages that haven't kept up with productivity. As MW is raised, workers have more money to spend, which increases demand, businesses see higher revenues and hire more employees to meet the demand. There is a limit to how high and how fast MW can be raised but we aren't there yet.
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Old 12-29-2019, 01:13 PM
 
2,916 posts, read 4,048,827 times
Reputation: 3526
Quote:
Originally Posted by Elliott_CA View Post
The experiment in raising the minimum wage has already been done. Here are the results:
  • California's minimum wage was $8.00 in 2013 while the unemployment rate was 8.4%
  • California's minimum wage is $12.00 now (going up to $13 in three days) and the unemployment rate is now 3.9%.
Totally bogus analysis.

Obama was president in 2013. The Great Obama Recession was in session.
Trump is president now. The Great Trump Recovery is in full swing.

Now, that's a much better analysis.
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Old 12-29-2019, 01:17 PM
 
2,765 posts, read 2,260,195 times
Reputation: 6730
Quote:
Originally Posted by Teak View Post
Totally bogus analysis.

Obama was president in 2013. The Great Obama Recession was in session.
Trump is president now. The Great Trump Recovery is in full swing.

Now, that's a much better analysis.
The great recovery started before Trump took office.
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Old 12-29-2019, 01:21 PM
 
447 posts, read 190,252 times
Reputation: 1201
Using California as a good example of economic policy to follow doesn't seem like such a great idea to me.
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Old 12-29-2019, 01:26 PM
 
Location: Guadalajara, MX
6,770 posts, read 3,277,964 times
Reputation: 12949
Quote:
Originally Posted by Teak View Post
Obama was president in 2013. The Great Obama Recession was in session.
Trump is president now. The Great Trump Recovery is in full swing.
This takes an astounding abilities of self-delusion.
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Old 12-29-2019, 01:48 PM
 
447 posts, read 190,252 times
Reputation: 1201
Why should we mandate a minimum wage when the cost of living varies so greatly from state to state and even from city to city within some states?

Minimum wages were never intended to be a "living wage" for a family... or even for an individual. Nevertheless, it is instructive to do some comparisons.

Would you rather be making $13/hour in California where the cost of a 1 BR apartment could be $3,000 per month (or HIGHER),

or would you rather be making $7.25/hour in Tennessee where a 1 BR apartment might cost you $700 per month?
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Old 12-29-2019, 04:28 PM
 
299 posts, read 127,020 times
Reputation: 507
Quote:
Originally Posted by jasperhobbs View Post
The great recovery started before Trump took office.
If you recall the recession started before Obama took office. One of the reasons Obama was elected was that he was seen to have a steadier hand than McCain in September and October '08 as the economic storm clouds gathered.
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Old 12-29-2019, 04:56 PM
 
447 posts, read 190,252 times
Reputation: 1201
Quote:
Originally Posted by HDWill1 View Post
If you recall the recession started before Obama took office. One of the reasons Obama was elected was that he was seen to have a steadier hand than McCain in September and October '08 as the economic storm clouds gathered.
Maybe that steadier hand was due to the pot that Obummer was smoking. That, coupled with the fact that being a "Community Organizer" is not generally considered to be a high pressure job.
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