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8/25/2016 8:52 pm  #11


Re: Minimum Wage

Probably the best "fix" for the minimum wage is to have it automatically adjusted based on the CPI, as is done for Social Security benefits and many (but not all) provisions of the IRS code.


Caveat:  There are some serious issues with how the CPI is calculated, chief among which is the exclusion of food and energy and the inclusion of such things as mortgage interest.  The very poor/low wage earners are likely to spend much of their limited income on food and energy, but very little if any on mortgage interest.


Life is an Orthros.
 

8/25/2016 9:02 pm  #12


Re: Minimum Wage

Tarnation wrote:

Probably the best "fix" for the minimum wage is to have it automatically adjusted based on the CPI, as is done for Social Security benefits and many (but not all) provisions of the IRS code.


Caveat:  There are some serious issues with how the CPI is calculated, chief among which is the exclusion of food and energy and the inclusion of such things as mortgage interest.  The very poor/low wage earners are likely to spend much of their limited income on food and energy, but very little if any on mortgage interest.

I agree  that we need some way to index the minimum wage that is fair to the people most represented by that group. 

Last edited by tennyson (8/25/2016 9:02 pm)


"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
 
 

8/26/2016 7:04 am  #13


Re: Minimum Wage

It is indeed unfortunate that the people in the board rooms and executives at corporate offices feel no responsibility for adjusting wages and salaries of their employees to enable a reasonable standard of living. It seems to me that they are more interested in keeping the expense related to human resources to a minimum. They say they need to do this because of global competition. So they make decisions like cutting back the workforce, increasing mandatory overtime rather than hiring additional staff, stifling annual increases (for the average worker the average annual increase today in the U.S. Is about 3%), moving manufacturing facilities and HQ's overseas to avoid taxes, and acquiring like companies to reduce competition.

The interesting result of these actions is, while less people are employed and those that are find their wages/salaries stagnant, the compensation packages of corporate executives continues to grow (statistics show U.S. executives make over 400% more per year than their average employees) at a staggering rate, and the quality of products and services provided by these mega corporations continues to decline. Doesn't that demonstrate that something is definitely wrong with the way our system is administered today?

Last edited by Rongone (8/26/2016 7:05 am)

 

8/26/2016 7:12 am  #14


Re: Minimum Wage

As a welfare worker, I can see the need to increase minimum wage.

But not to 15.00/hour.

Eventually, the economy will level again and 15.00/hour would buy as much as 7.50/hour does now.

 


If you make yourself miserable trying to make others happy that means everyone is miserable.

-Me again

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8/26/2016 7:26 am  #15


Re: Minimum Wage

As a business owner myself (although much, much smaller than rongone), I'll echo rongone's perspective on the issue.  His posts are spot on.

As far as increasing the minimum wage to $15/hr, I wasn't thinking of an immediate jump, but instead increasing the minimum incrementally.  Maybe over a period of 5 years, for example.

As I pointed out before, history doesn't support the premise that raising the minimum wage is detrimental to business or the economy, but in fact, the opposite is true.  Also, if the minimum wage were to increase, there is a ripple effect that works upward throughout the workforce and middle management.  

As rongone also observed using his own experience, the demand for goods and services is the driving force, not the supply side.

 

Last edited by Just Fred (8/26/2016 9:12 am)

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8/26/2016 7:50 am  #16


Re: Minimum Wage

Fred, raising the minimum wage may not have an overall negative effect on the economy, but as The Man pointed out it has never been doubled in a short period of time.  Also, while the economy as a whole may not be negatively effected, there is evidence that it does have a negative effect on employment.  See below article:

http://www.frbsf.org/economic-research/publications/economic-letter/2015/december/effects-of-minimum-wage-on-employment/

There is almost certain to be a reduction in entry-level jobs in the economy if the minimum wage is increased to $15, which makes it difficult for individuals to enter the workforce and build job experience and skills necessary to further their career.

 

 

8/26/2016 8:34 am  #17


Re: Minimum Wage

tennyson wrote:

For background, here was  an interesting article from two years ago about WHO makes the minimum wage. It is from the Pew Research Center. 

http://www.pewresearch.org/fact-tank/2014/09/08/who-makes-minimum-wage/

One might conclude from the data that raising the minimum wage will have neither the widespread good, or bad effect that some proponents and opponents predict.


We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists. 
 

8/26/2016 9:19 am  #18


Re: Minimum Wage

Goose wrote:

tennyson wrote:

For background, here was  an interesting article from two years ago about WHO makes the minimum wage. It is from the Pew Research Center. 

http://www.pewresearch.org/fact-tank/2014/09/08/who-makes-minimum-wage/

One might conclude from the data that raising the minimum wage will have neither the widespread good, or bad effect that some proponents and opponents predict.

An interesting tied in question is just which group of people use the goods and services that would be impacted by raising the minimum wage. If it is the same group primarily as the people getting the raise then it would greatly diminish the impact of the raise. It would be an interesting topic to check in to. 

Also an interesting question for all of us would be IF for instance the minimum wage would magically jump quickly to $15/hr, would you cut your tipping for people like waitresses, etc and do you think that would itself impact anything like their service, etc. 

 


"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
 
 

8/26/2016 9:20 am  #19


Re: Minimum Wage

"There is almost certain to be a reduction in entry-level jobs in the economy if the minimum wage is increased to $15, which makes it difficult for individuals to enter the workforce and build job experience and skills necessary to further their career."


From my perspective, Individuals not having the skills necessary to qualify for entry level jobs seems like a failure of our education system along with lack of collaboration with companies stipulating the skills needed for the products and services they offer. How can a company say they can't find people with the necessary skills in the U.S., and then close down domestic facilities and then move their operations overseas to a third world country? Are they doing this because workers in Bangladesh are more skilled than domestic workers or because they will work for 20% of the wages of domestic employees? We all know the answer to that question. And, I submit, that is one reason that the quality of their products and services have declined when this action is taken. If you don't believe me, I can tell you stories, and I'm sure you or a family member, or a friend has expressed their frustration when calling a helpline and getting "Donald" located in Bangalore, India to help you solve your problem.

I suggest that more cooperation and collaboration between educational institutions, corporate training facilities, and government is necessary to educate and train workers here, in the U.S., that will fill the necessary slots in our workforce to ensure quality products and services at a reasonable price while providing quality employment for all workers at a reasonable wage/salary. Even at the expense of some of the outrageous compensation packages of many corporate executives like Heather Bresch.

Last edited by Rongone (8/26/2016 9:22 am)

 

8/26/2016 9:24 am  #20


Re: Minimum Wage

What does everyone think about the effect raising the minimum might have on such things as public assistance programs and welfare?  Wouldn't government also receive a boost in revenue via tax collection?

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