This is an important conversation and I would like to bring it back on track. We do a lot of theoretical posturing about the effects of higher minimum wages but we have actual data and I think what we are missing with all of the sophisticated labor and wage market theories is the strength of the American consumer, which makes up 70% of the economy. And when it comes to the American consumer it’s a story of disparity and growing wealth gaps.
I made the point before when unions were at their strongest Americans also had the strongest purchasing power. @Tony Stark is off of his rocker with his Biden hating but he is right that union members make higher wages than non union members. @newwurldmn countered with a pretty specious argument that unions would rather 3 members make $100k than 10 non members make $90k. While there is no basis for that there is nothing wrong with unions pursuing the self interest of their members which is equivalent to businesses pursuing profit motive.
The point is that there is no real evidence that higher wages destroy jobs in the larger market. Yes, there will be adjustments where some businesses are priced out and costs increase. What’s also important is that higher wages reduces the expanding wealth imbalances in America.
The free market isn’t some panacea that will always create ideal outcomes for everyone. The free market is designed to create competition. That’s it. The rest like health and safety, minimum wages, etc is up to us as a society.
I personally would rather see a counterbalance in the labor market with union participation and a minimum wage of $12 an hour but with the decades of assault on unions and declining membership we will see governments act unilaterally on wages. The biggest problem here really isn’t McDonalds in California will raise prices 5% because California will be alright no matter what anyone thinks. The biggest problem will be the growing economic well being disparity between states with higher incomes and states with lower incomes.
The tale of two Americas is real and growing, and is mainly an issue of working poor. This has to be addressed with wages or the continuing social unrest will grow.
I made the point before when unions were at their strongest Americans also had the strongest purchasing power. @Tony Stark is off of his rocker with his Biden hating but he is right that union members make higher wages than non union members. @newwurldmn countered with a pretty specious argument that unions would rather 3 members make $100k than 10 non members make $90k. While there is no basis for that there is nothing wrong with unions pursuing the self interest of their members which is equivalent to businesses pursuing profit motive.
The point is that there is no real evidence that higher wages destroy jobs in the larger market. Yes, there will be adjustments where some businesses are priced out and costs increase. What’s also important is that higher wages reduces the expanding wealth imbalances in America.
The free market isn’t some panacea that will always create ideal outcomes for everyone. The free market is designed to create competition. That’s it. The rest like health and safety, minimum wages, etc is up to us as a society.
I personally would rather see a counterbalance in the labor market with union participation and a minimum wage of $12 an hour but with the decades of assault on unions and declining membership we will see governments act unilaterally on wages. The biggest problem here really isn’t McDonalds in California will raise prices 5% because California will be alright no matter what anyone thinks. The biggest problem will be the growing economic well being disparity between states with higher incomes and states with lower incomes.
The tale of two Americas is real and growing, and is mainly an issue of working poor. This has to be addressed with wages or the continuing social unrest will grow.
