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If you raise minimum wage 4x, then you're going to have to raise the wages of everyone else who makes above that and prices will skyrocket. The "proportions" would stay the same and standards of living would not rise for the people at the bottom.
Say for example, my salary at my CPA firm stayed the same and suddenly the greeter at Wal-Mart was making more than me. Why would I not demand a raise seeing as how I went to college for 5 years and am working towards passing a rigorous exam? Are you also going to x4 my salary?
If there are more minimum wage employees than CPA's. It would increase consumption and the movement of dollars. You would have more customers.
The strong dollar relies on a strong military, and a strong military relies on a strong dollar. The U.s will remain the world's reserve currency until the day the OPEC agreement put into place in 1971 comes to an end. We left the gold standard, but entered the oil/dollar standard; a resource far more important in the modern world.
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Viewed from a different angle, an oil price ceiling is a dollar floor. Oil is traded in greater dollar volumes than any other commodity so the oil standard had more liquidity than gold ever did.
According to the December 20, 2004 issue of the Oil and Gas Journal, the oil reserves of OPEC at yearend 2004 are estimated to be 885 billion barrels. The oil equivalent of Fort Knox was not the Strategic Petroleum Reserve; it was the combined oil reserves of OPEC, three orders of magnitude greater and much larger in value than all the gold mined since the dawn of history.
According to the United States Geological Survey, the total gold ever mined in the world is about 3.4 billion troy ounces. At $42 per barrel for oil and $420 per troy ounce for gold, the value of Opec's reserves is 26 times the value of all gold ever mined.
Every country that is worth a damn needs oil. The way to buy Opec's oil is to get dollars. Other countries get dollars by exporting to the U.s. IE keeping their currency artifically low.
Basically, the United States created "globalism" to dollarize the world. We make dollars (paper) and everyone else makes things (real goods/resources) that dollars can buy. From us having an (intentional) trade deficit, the other countries would build up dollar reserves. They would then invest these reserves in U.s treasuries, which allowed us to consume more (with intentional budget deficits). This setup created even bigger trade deficits...which meant more dollars floating out. Bingo. You guessed it. Foreign central banks needed to hold even more reserves (to prop up the dollar and keep their currencies low to maintain their export based economies). We were more than happy to supply the budget deficit and extra consumption. This loop has been keeping the U.s artifically doped for nearly 4 decades like the article above outlines. It was a form of colonizing the world more slick than the British could have ever dreamed of.
Bretton Woods 1945-1971
Bretton Woods 2 1971-2008
Qadaffi is dead because he hinted at trading oil in his own currency.
Iran's fate will be the same. But a little worse for us, because of their strategic straits of Hormuz location.
Saudi has to by our Treasury dollars to the tune of 10% of their gross oil production.
If there are more minimum wage employees than CPA's. It would increase consumption and the movement of dollars. You would have more customers.
but...there are all ready many more minimum wage employees compared to CPAs....
So if this plan of X4 the minimum wage goes through, tell me why I should bother to come to work? Shouldn't I stop bothering to wrack my brain with GAAP and tax law, when I could make more from standing at a register? Why should a doctor bother studying for a decade when he or she could make just as much doing lawncare
This strategy would completely destroy incentive of everyone who has progressed past the minimum. Not to mention it would reduce living standards considerably and cause price hikes on all products (assuming the accountants haven't already walked of the job before bothering to figure out the price increases)
Qadaffi is dead because he hinted at trading oil in his own currency.
Iran's fate will be the same. But a little worse for us, because of their strategic straits of Hormuz location.
Saudi has to by our Treasury dollars to the tune of 10% of their gross oil production.
Yep, and we dropped everything to teach Suddam H. a lesson in manners when he stopped trading his oil in dollars.
It's going to get very dangerous in the world if emerging markets begin to question the U.S dollar dominance....because that's an attack on the U.s military.
I see the next conflict being between Americans/Europeans vs the emerging markets. We (ECB/FED) want to maintain our power over the printing presses to buy up the world's REAL resources with paper....and they want it to stop.
"Real" wars are fought when a countries living standards are at stake IE fossil fuels and central banking power.
I would not waste your time arguing with the pollyanna's on this forum.
That is funny, people who acknowledge the many problems with the economy and certainly agree on lots of uncertainty are labelled "pollyana" for not buying into yet another financial collapse prediction.
Why are you still wasting your time, as many economic catastrophe predictions you've already been wrong on? A few months back Modeerf predicted Dow 7k for now, he was way off but now he's back as an expert with new doom predictions. Yawn.
but...there are all ready many more minimum wage employees compared to CPAs....
So if this plan of X4 the minimum wage goes through, tell me why I should bother to come to work? Shouldn't I stop bothering to wrack my brain with GAAP and tax law, when I could make more from standing at a register? Why should a doctor bother studying for a decade when he or she could make just as much doing lawncare
This strategy would completely destroy incentive of everyone who has progressed past the minimum. Not to mention it would reduce living standards considerably and cause price hikes on all products (assuming the accountants haven't already walked of the job before bothering to figure out the price increases)
Incentive is doing a good job. Being a good neighbor
No wonder i can't find a decent doctor. They went into it for the money.
4x$8 per hr. = $32.00 per hr.
My CPA charges $150.00 hr. when he's in a good mood and had a good round on the golf course.
My Doctor charges What ever the hell he wants.
Money is only valuable when it's moving.
Pay people that move it better and it will all work out great.
It's better than what we are headed for, that is for sure.
That is funny, people who acknowledge the many problems with the economy and certainly agree on lots of uncertainty are labelled "pollyana" for not buying into yet another financial collapse prediction.
Why are you still wasting your time, as many economic catastrophe predictions you've already been wrong on? A few months back Modeerf predicted Dow 7k for now, he was way off but now he's back as an expert with new doom predictions. Yawn.
Your so consumed by money and trying to make it, you don't see reality, and therefore will never have any real wealth.
A few months back the trend was for a Dow 7k by OCT.
The prediction was based on the thread it was predicted in, and the moment in time that the financial wizardry was trending toward default of the PIIGS.
The prediction on the thread where the sky was falling and the Dow was dropping, and i said it would break 12k was based on the knowledge that this temporary Morphine shot (con job) out of the ECB was imminent.
One missed, one hit. Better than Vegas and way better than Wall ST. odds.
The prediction stands that the Dow will collapse after poor holiday shopping, unless my calculations on available consumer credit is off. The last consumer spending says it won't be, when you look at income vs. spending, the increase was on PLASTIC (more debt).
I believe at this time, there is so little head room on consumer credit that this earnings season will shock, yes shock the financials. Mass layoffs at the 1st of the yr.
Regardless, the economy and social peace will not improve until the criminals lose and the victims of Mortgage fraud through RMBS's is addressed.
Anyone that thinks we get out of this mess without a housing solution is really ignorant of the rebellion that awaits further depression of most people's largest investment.
Your so consumed by money and trying to make it, you don't see reality, and therefore will never have any real wealth.
You are just blindly flailing here trying to make something stick, I'm certainly not consumed by trying to make money. I regularly turn down higher paid positions because I currently can work from home and work relatively light hours. Furthermore you have no idea how much wealth I do or do not have.
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A few months back the trend was for a Dow 7k by OCT.
The prediction was based on the thread it was predicted in, and the moment in time that the financial wizardry was trending toward default of the PIIGS.
And you foolishly displayed your lack of investing acumen by jumping in and predicting the same. Good job, you sure know your stuff 7k vs. 12k nice.
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The prediction stands that the Dow will collapse after poor holiday shopping
The prediction of someone who said dija would be a 7k now doesn't really carry much weight though does it? They obviously haven't a clue.
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