U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-09-2020, 08:40 AM
 
1,784 posts, read 916,285 times
Reputation: 517

Advertisements

A poor minimum drags on the median wage rate.

Due to employers’ wage differential practices, the minimum wage rate’s effects upon USA’s lowest earning 40 percentile of employees’ wage rates, range from a critical to a substantial portion of their jobs’ wage rates.

Minimum wage’s insufficient purchasing power is detrimental to the purchasing power of the median rate. Our middle-income bracket’s economy cannot be robust, if our minimum wage rate’s purchasing power’s poor.

Respectfully, Supposn
Quote:
Originally Posted by Supposn View Post
H.R. 582, “Raise the wage act” is a good bill, but opponents of the bill will refrain from mentioning the minimum hourly rate will not be $15 until 7th year after the bill's passage.

In the likely case that it's not passed through and added to our federal statutes, I urge U.S. Congressional members to continue striving and pass a bill that would increase the minimum wage rate by 12.5% of its purchasing power until it attains 125% of its February-1968 purchasing power. Thereafter the rate should be monitored and annually adjusted to retain that purchasing power.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-09-2020, 09:11 AM
 
19,346 posts, read 16,982,049 times
Reputation: 7519
Quote:
Originally Posted by Supposn View Post
A poor minimum drags on the median wage rate.

Due to employers’ wage differential practices, the minimum wage rate’s effects upon USA’s lowest earning 40 percentile of employees’ wage rates, range from a critical to a substantial portion of their jobs’ wage rates.

Minimum wage’s insufficient purchasing power is detrimental to the purchasing power of the median rate. Our middle-income bracket’s economy cannot be robust, if our minimum wage rate’s purchasing power’s poor.

Respectfully, Supposn

You cannot raise wages because people with more wages will buy and drive up asset prices making the effective wage what it was before. It has been known since the 1870s.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 09:50 AM
 
85,891 posts, read 83,358,560 times
Reputation: 61638
Quote:
Originally Posted by gwynedd1 View Post
You cannot raise wages because people with more wages will buy and drive up asset prices making the effective wage what it was before. It has been known since the 1870s.
exactly ...you cannot raise wages to cure price increases from shortages or demand ....stop the over use or increase supply and problem solved .

we saw that with oil which sold for almost 3x the price it does today more than a decade ago
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 10:09 AM
 
1,784 posts, read 916,285 times
Reputation: 517
Default Minimum wage rate is not among the primary drivers of inflation.

The minimum wage rate is not among the primary drivers of the U.S. dollar’s inflation:

There are comparatively few goods or service prices or costs that are entirely attributable to the prices of labor and the minimum wage rate does not affect all wage rates equally.
The minimum rate’s proportional effect upon a product’s price is dependent upon the proportion of the price that’s attributable to direct or indirect labor, and the proportional differences between those labor costs that are attributable to higher or lower wage rates.

That’s why the minimum wage rate has never been among the primary drivers of U.S. dollar’s inflation. Inflation occurs even when the minimum wage rate has not been increased.
Respectfully, Supposn
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 10:22 AM
 
1,784 posts, read 916,285 times
Reputation: 517
Quote:
Originally Posted by gwynedd1 View Post
You cannot raise wages because people with more wages will buy and drive up asset prices making the effective wage what it was before. It has been known since the 1870s.
Gwynedd1 & Mathjak107:
Quote:
Originally Posted by Supposn View Post
The minimum wage rate is not among the primary drivers of the U.S. dollar’s inflation:

There are comparatively few goods or service prices or costs that are entirely attributable to the prices of labor and the minimum wage rate does not affect all wage rates equally.
The minimum rate’s proportional effect upon a product’s price is dependent upon the proportion of the price that’s attributable to direct or indirect labor, and the proportional differences between those labor costs that are attributable to higher or lower wage rates.

That’s why the minimum wage rate has never been among the primary drivers of U.S. dollar’s inflation. Inflation occurs even when the minimum wage rate has not been increased.
Respectfully, Supposn
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 11:28 AM
 
1,784 posts, read 916,285 times
Reputation: 517
Quote:
Originally Posted by mathjak107 View Post
exactly ...you cannot raise wages to cure price increases from shortages or demand ....stop the over use or increase supply and problem solved .
we saw that with oil which sold for almost 3x the price it does today more than a decade ago
Mathjak107, few of us knew; we believed the fake news attributing global petroleum’s sharply spiking price increases as due to organized Middle-Eastern nations exerting their economic and political influence. You now reveal it was all the fault the guys stocking the supermarket shelves.

Do you really believe a USA federal minimum wage increase upset the entire global petroleum markets?
Respectfully, Supposn
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 11:35 AM
 
Location: NMB, SC
9,841 posts, read 2,823,238 times
Reputation: 13255
Really ? How much do you think an orange would cost if the picker was making $20/hour ?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 12:16 PM
 
Location: Chandler, AZ
3,023 posts, read 1,720,838 times
Reputation: 7181
Quote:
Originally Posted by Supposn View Post
The minimum wage rate is not among the primary drivers of the U.S. dollar’s inflation:

There are comparatively few goods or service prices or costs that are entirely attributable to the prices of labor and the minimum wage rate does not affect all wage rates equally.
The minimum rate’s proportional effect upon a product’s price is dependent upon the proportion of the price that’s attributable to direct or indirect labor, and the proportional differences between those labor costs that are attributable to higher or lower wage rates.

That’s why the minimum wage rate has never been among the primary drivers of U.S. dollar’s inflation. Inflation occurs even when the minimum wage rate has not been increased.
Respectfully, Supposn
The cost of labor is always an input into the price of a good or service. And a lot more affects prices than inflation.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 02:56 PM
 
Location: Ohio
22,798 posts, read 15,989,047 times
Reputation: 19288
Quote:
Originally Posted by Supposn View Post
The minimum wage rate is not among the primary drivers of the U.S. dollar’s inflation:

There are comparatively few goods or service prices or costs that are entirely attributable to the prices of labor and the minimum wage rate does not affect all wage rates equally.
The minimum rate’s proportional effect upon a product’s price is dependent upon the proportion of the price that’s attributable to direct or indirect labor, and the proportional differences between those labor costs that are attributable to higher or lower wage rates.

That’s why the minimum wage rate has never been among the primary drivers of U.S. dollar’s inflation. Inflation occurs even when the minimum wage rate has not been increased.
Respectfully, Supposn
Spoken like someone who has absolutely no understanding of Inflation whatsoever.

There are four forms of Inflation, each with a unique cause and thus each with a unique solution to mitigate the Inflation.

1) Monetary Inflation is effectively too many dollars chasing too few goods and services. The solution is to cut spending, raise taxes, raise the interest rate or reduce the money supply, or a combination of those to combat Monetary Inflation. Wages do not cause Monetary Inflation and in fact wages rise at the annual rate of Monetary Inflation albeit usually with some delay.

2) Wage Inflation occurs when rising wages drive up the prices of goods and services. Unlike Monetary Inflation where every single good and service that exists is affected, Wage Inflation may negatively impact select goods and services, like housing, for example. That has occurred twice in history on a wide-spread scale and the solutions offered by FDR and Nixon were a Wage & Price Freeze. That is not the correct solution. The correct solution is a Price Freeze only. The Laws of Economics will ultimately curtail Wage Inflation on their own, as in fact they really did both times anyway. Wage Inflation can occur on smaller scales like regional, State and local scales. Increasing minimum does in fact cause Wage Inflation on local scale. Note that Wage Inflation does not cause the price of goods and services to increase uniformly. In other words, the price of housing may increase a 5% while other goods and services increase at 3% and still others at 2% or less and other goods and services may increase at rates in excess of 5%.

3) Demand-pull Inflation is caused by consumer demand exceeding available supply. It does not affect every single good and service, only those goods and services that are impacted by Supply & Demand. The solution is to either stop consuming, seek substitutes or increase Supply to match Demand. Note that increasing Supply to meet Demand is often not possible for a variety of reasons. For housing, if an area is saturated then no new housing can be built so Supply cannot possibly be increased. At other times, the cost of production or providing a service would not allow break-even or a profit, in which case you have to wait until prices rise even higher in order to begin production or provide a service so that you can break-even or make a profit.

Minimum wage increases exacerbate Demand-pull Inflation, causing prices to rise higher.

That is readily apparent in housing markets, but it occurs elsewhere, too.

4) Cost-push Inflation is the result of taxes, fees and other costs stemming from statutes, laws, rules or regulations.

Case in point, daycare in Ohio. It used to cost about $3,500/year but now it costs more than one year's tuition at a 4-year university. Why? Because the legislature in its infinite wisdom decided that daycare workers needed a 1-year certificate or 2-year associate degree from an accredited institution of higher learning in early childhood education. The result was the Supply of Labor decreased 90%. Since Demand for Labor remained constant, labor costs increased dramatically almost over-night.

Why? Because many daycare workers don't have diplomas or GEDs, and don't care to get one and care even less about going to college. Others don't have the time or money, and for those who do have the time or money, it's an issue of Opportunity Costs. If you're going to spend the time and money, then you might as well get certification or a degree in a field that pays more than daycare or which will provide more opportunities for employment than daycare might provide.


In the future, do try to keep up.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-09-2020, 03:14 PM
 
85,891 posts, read 83,358,560 times
Reputation: 61638
That pretty much sums it up well
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top