Ah yes, because politicians in their infinite wisdom can just set an arbitrary "fair wage" that applies to all business, in all industries and that's that...Please put a bit more thought into your opinions.
Hey Democrats, you want wage increases? How about applying the principles of free market economics.
- Thread starter wildchild
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Ah yes, because politicians in their infinite wisdom can just set an arbitrary "fair wage" that applies to all business, in all industries and that's that...Please put a bit more thought into your opinions.
I also find it fascinating that the left is clamoring for this near doubling of the minimum wage without asking the "why" do we need to double the minimum wage? No scrutiny upon the central bank's that have unleashed this tsunami of inflation upon society whereby food, rent, medical care, tuition's, etc...have skyrocketed. The fact of the matter is that even with this bump in the minimum wage (which will lead to many job losses-see the state's that have already enacted this), it will only put a small dent into the notion of a "living wage"...
How's this: Any full-time job should at least provide a living wage. Period. People should not have to have more than one full-time job just to make ends meet for basic living needs. You want families to spend more time together so that they can raise their children to have a better chance of leading productive lives? Well, this might be a good place to start.
Your turn.
A small dent?" Then what's the problem? So no dent is better?
As for all manner of job losses, the net effect is beneficial. Let's put the most basic of supply/demand curves from Econ101 aside. The subject of economics covers more than just an introductory course.
http://www.businessforafairminimumw...-minimum-wage-increases-do-not-cause-job-loss
https://www.dol.gov/featured/minimum-wage/mythbuster
Read my second post. First, you have to address the completely fabricated reporting of inflation. That is the first part that needs to be addressed. We've been living thru stagflation in the US...Food, rent, property taxes, medical care, tuition, etc, etc...Hence, the entire argument about a doubling of the minimum wage is in response to this "stealth" inflation that govt. figures do not account for (formula changes, hedonic adjustments, yada, yada).
Now to your question. How many small businesses are even viable under your plan? How many industries are still using "off the books" labor? (Don't be naive, it's probably an enormous part of the economy)...How many jobs has this country already lost due to high labor costs? (see offshoring over the past 30 years)...The unions of yesteryear, with their demands for perpetual wage hikes, benefit packages, etc...began this exodus of jobs...Now, the left is looking to unleash a massive wage increase in the midst of an economy with almost non-existent growth...Pricing pressures are already tight (see unreported inflation)...Hence, this will lead to the closing of many small businesses and play right into the hands of the behemoths that can efficiently operate under "economies of scale"...The left has always been the enemy of small business and this is just another episode in that long history of over-regulation.
As a former business owner, I will use my own experience and understanding of how a business' bottom line is affected by labor costs...Sorry, I will not rely on some slanted studies (probably by a team of academics on how massive minimum wage increases won't affect the viability of a given business)...
Since this experiment has only been implemented on a localized basis, there are still some "inefficiencies" (i.e. low cost labor states)...Wait until it hits the entire supply chain and tell me how this experiment in central planning goes...Seriously the last thing this country needs is even greater costs to doing business...
Again, I go back to my initial argument...The Fed is hellbent on preventing deflation...Why are home prices and rents rising in a stagnant economy with almost no wage growth? Once you see which side of the argument on, maybe you will appreciate what I am saying...(yes I understand that deflation affects servicing the debt), but at some point this grand experiment in financial chicanery has to come to an end.
Low wage earners are increasingly being left behind. You know this.
Bottom line: No just society would allow and encourage the existence of an economic underclass that cannot even make basic ends meet despite full-time employment and then some. That is just wrong. It is a condition that exists in Third World countries. Is this what you aspire to? Is that what makes America exceptional?
Bottom line: No just society would allow and encourage the existence of an economic underclass that cannot even make basic ends meet despite full-time employment and then some. That is just wrong. It is a condition that exists in Third World countries. Is this what you aspire to? Is that what makes America exceptional?
You offer a micro perspective based on your personal experience, whereas an overall economy is macro by definition. They may be related, but they're not the same. As for slanted studies, I wonder which side those are more likely to emerge from...
Until you can prevent a business from playing the "wage arbitrage" game, first world countries will see wages decline...Just look at the medical industry as one example...Why does the same procedure cost only a fraction in a foreign country than it does in the US (medical tourism)?
And again why the complete avoidance of the role of central banks in this mess? What happens when you get that $15/hr min wage and the senior citizens who have been earning next to nothing on their savings for the last 8 years have to pay more for everything...Again, we are talking about a cluster**** of consequences resulting from reckless monetary policy.
From the side that doesn't have to run a business...That was a lay-up.
A bottom up approach is what is needed to all of this "one size fits all" talk.