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Raising the minimum wage to $10.10 is increasing labor costs on businesses by about 40%, hardly a tiny increase. So these employees suddenly have more money in their pocket, but their employer has to raise prices to offset that huge labor cost increase. Not really much of a gain there.
And for a family of four, they're still in poverty even after the wage increases to $10.10. No gain there.
There should absolutely be no Federal minimum wage. It should be set locally, because cost of living varies wildly across this country -- an income that's livable in a small town might not even cover rent in a city like San Francisco. If big cities want to raise their local minimum wage to $15 because those cities are so expensive to live in, that's their business. If they set the minimum too low, businesses won't be able to fill low-skill positions. If they set it too high, businesses will relocate.
2 problems.
1 It will be a race to zero minimum wage.
2 Due to gerrymandering on both sides, many states are not even close to representative. Ohio, NC, CA, MD... Thusly they will reflect whoever the power broker is.
Second, the article points out a much bigger issue. Seattle is expensive! We all agree that rents are high in Seattle and I am sure as soon as this business moves out, there will be companies that are worth more that will be fighting for that leasable space.
The lack of logic here is astounding. Urbanlife is trying to tell us that companies will be chomping at the bit to move to Seattle for higher rents and having to pay higher wages. What is the main mission of any corporation or small business? Answer, too increase profits and cut expenses which labor is part of. That is 3rd grade economics
The lack of logic here is astounding. Urbanlife is trying to tell us that companies will be chomping at the bit to move to Seattle for higher rents and having to pay higher wages. What is the main mission of any corporation or small business? Answer, too increase profits and cut expenses which labor is part of. That is 3rd grade economics
Oh I didn't realize the economy in Seattle was collapsing because the minimum wage is too high.
Try again, let me know how easy it is to find cheap real estate in the city, the amount of demand they have is the reason why owners are asking a premium for their rents.
Oh I didn't realize the economy in Seattle was collapsing because the minimum wage is too high.
Try again, let me know how easy it is to find cheap real estate in the city, the amount of demand they have is the reason why owners are asking a premium for their rents.
I never said anything about Seattle collapsing. I am disputing your nonsense that companies from other regions would want to move to Seattle to pay higher rents and higher wages.
But since you are in the region you could keep us abreast on corporations moving to Seattle from other regions and corporations leaving for other regions. What do you think you will get more of companies leaving or moving to Seattle? You will keep us in the know, right?
I never said anything about Seattle collapsing. I am disputing your nonsense that companies from other regions would want to move to Seattle to pay higher rents and higher wages.
But since you are in the region you could keep us abreast on corporations moving to Seattle from other regions and corporations leaving for other regions. What do you think you will get more of companies leaving or moving to Seattle? You will keep us in the know, right?
Move there or expand within the city, someone is willing to pay for those high rents. A Houston based company, Alert Logic, is expanding and opening up an office in Seattle, and Disney just expanded their office space in Seattle by 40%.
Rather than question what might happen, let's look at what has happened.
What was the purpose of previous increases in the minimum wage? What was the desired effect? Did the increases result in that desired effect?
Nope! The reason the same people who cried before and will cry 5 years from now is directly due to Rhein lack of ability to increase their value to the labor market. It's one level above the folks who teach generations of their families to live off the guy that wears the hardhat next door.
The problem is the labor market has been flooded with 18 million illegals that were hired on the cheap over the last couple of years. The earning power of the blue collar worker is less now therefore the pool of free money to fund Osama phones, free housing, healthcare, food stamps etc is dwindling. Unsustainable.
Nope! The reason the same people who cried before and will cry 5 years from now is directly due to Rhein lack of ability to increase their value to the labor market. It's one level above the folks who teach generations of their families to live off the guy that wears the hardhat next door.
The problem is the labor market has been flooded with 18 million illegals that were hired on the cheap over the last couple of years. The earning power of the blue collar worker is less now therefore the pool of free money to fund Osama phones, free housing, healthcare, food stamps etc is dwindling. Unsustainable.
We need to have the US minimum wage apply to all the workers making stuff to sell in the US. Then we can raise it a bunch and not get outsourced away.
The problem is the labor market has been flooded with 18 million illegals that were hired on the cheap over the last couple of years. The earning power of the blue collar worker is less now therefore the pool of free money to fund Osama phones, free housing, healthcare, food stamps etc is dwindling. Unsustainable.
This is why electing democrats will not solve anything for the same reason keeping republicans will not solve anything. They both want illegals for their own reasons. But illegals aren't the only reason wages have been kept so depressed. As much as republicans scream the contrary keeping the min wage depressed also keeps others wages depressed. Maybe not the 50k a year guy but the 20k a year guy for sure. Not everybody lives the middle class bubble republicans envision. There was a post around here awhile back where over half the nation makes less that 25k a year. That is what 12 bucks an hour? Unsustainable indeed.
We need to have the US minimum wage apply to all the workers making stuff to sell in the US. Then we can raise it a bunch and not get outsourced away.
Seems like an easy way to make our trade deficit even bigger.
The jobs already being outsourced for under minimum wage aren't coming back. Even if the pay was the same. You might (probably would) significantly reduce the rate of further outsourcing, but the price would be a huge immediate increase in cash outflows from U.S. businesses and consumers to other countries .... this is a policy where the destination isn't worth the cost of the journey. If you're going to close down free trade in the first place (which may or may not be a good idea, I'll admit I'm not certain) better to do it the simple, traditional way (tariffs) or the more modern, deniable way (excessive red tape).
Seems like an easy way to make our trade deficit even bigger.
for a bit but with the increased income in those foreign places will come an increase in demand.
Quote:
Originally Posted by ALackOfCreativity
The jobs already being outsourced for under minimum wage aren't coming back. Even if the pay was the same. You might (probably would) significantly reduce the rate of further outsourcing, but the price would be a huge immediate increase in cash outflows from U.S. businesses and consumers to other countries ....
largely that is the point of this. A huge bump in spending on a global scale.
Quote:
Originally Posted by ALackOfCreativity
this is a policy where the destination isn't worth the cost of the journey. If you're going to close down free trade in the first place (which may or may not be a good idea, I'll admit I'm not certain) better to do it the simple, traditional way (tariffs) or the more modern, deniable way (excessive red tape).
The way I would go about it is to put a tax penalty on dividends and capital gains on stocks for any company that paid anyone less than US minimum wage any where in the world, used contract labor at the same, or bought anything made by anyone at less than US minimum wage.
The jobs are gone but the growth mdistribution in the economy world wide needs to change.
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