Raising the minimum wage is good for the economy.

That was sophomore year of High School curriculum about 25 years ago. You would think that understanding that incentives affect decisions, and the inverse also being true would be common sense intuition.

 

Charts & graphs don't tell the real ground truth of the fact that a drastic increase in the MW is likely the fastest & most sure-fire way to guarantee runaway inflation.

First off, minimum wage is not supposed to be what the left calls a "living wage" anyway. It's SUPPOSED to be a STARTING POINT from which you're expected to earn your way up!

Now...say I work at a local McDonald's franchise...owned by Joe Blow private business owner who, like most franchisees, is NOT a member of the actual McDonald's corporation.

I started there at minimum wage and worked my way up to $15 an hour. All new hires now make $15 an hour. Can I realistically expect to be given a raise to $22 an hour for proportional compensation?

No. What will happen is that the owner will have to reduce staff and/or raise the cost of product to compensate.

That starts the whole inflation ball rolling & it doesn't stop until recession....then minimum wage is the least of our worries!

But what do you care?

In your eyes, that "rich" franchise owner needs to "spread that wealth around" anyway, right?

Sure...he shouldn't expect to enrich himself off his initial investment.

He should just be glad that his government is so willing to take so much of his money and give it away at its own discretion!

Raising minimum wage good for the economy?

Hardly!

 

I have seen it happen under Reagan and Bush 43. When workers get scarce, their incomes rise.

Repeat, you do not need to raise the minimum wages, you need to have more jobs than workers willing to work.

Companies then bid up prices. Will this harm the economy over time? Well, we have always had those darned down cycles so I suppose the reply is yes it does.

This worked better to favor the workers until countries like China and Mexico got the hang of it.

 

This data is out there. 5% of those making min wage are over the age of 25 and work full time.

It's hard to find full time work when companies large enough to sustain growth must provide health insurance at astronomical rates to anyone working over 28 hours.

 

95 million people out of the work force.

 

Well if that's the case lets raise it $100 an hour. Lets make the economy really great and raise it to $500 an hour. After all raising the minimum wage is good for the economy right? Using the White House as a source. Who wrote this President Obama? Gotta be one of those fake news stories.

 

Not to mention small businesses (who employ most people in the country) are the ones that are harmed the most by raising the minimum wage at the Federal level. Giant companies can absorb higher labor costs, but what happens to the mom and pop store in the hated "flyover country" America who can't afford to pay their employees $15.00 an hour in their 1,000 person town?

 

Tell you????? I can tell you but please, when I and others tell you, just sit back, read and if you can, hire somebody.

First, Obama has no way to hire workers. Sure he can try to boost hiring if you work for Government. I like my job because it involves caring for my customer. Government workers spend all year long not fretting over we the public.

If they cared, would not they have a good and decent system, such as a one slip of paper form of paying taxes?

Anyway, Democrats NEVER admit republican presidents create jobs but they persist that their presidents create jobs.

All a president is in charge of is the people working for him in government.

Even Trump by working with Carrier did not create jobs. And it was Carrier that saved those jobs. I hear it was Indiana that gave some tax breaks. But Carrier could have smote those and moved anyway. I am simply making your argument for you prior to you doing it in a year or so.

I believe some posters really see presidents in the way one sees a king. That the king runs it all. But Obama does not. Were he running it all, would we currently have a terrible labor participation rate? Where is your chart on that?

 

I fall back on this old saying.

You can buy them books to study, you can include pictures, but when they rip out those pages and eat the books, what have you actually accomplished.

Simply put, to date, not one .... nobody .... who thinks like socialists think, generally Democrats, since it is they we get their wild economic ideas from, has posted they changed their mind.

Can any of us think of even one of them that changed their minds?

We who have studied this for many years don't change ours either.

I almost give up since they rip out the pages and eat the pretty pictures.

 

Ummm . . . the "federal level" is comprised of states. I showed the results for states that raised the MW.

 

Uh, what? There's a federal minimum wage that applies to all states, state level minimum wage, and local level minimum wage. Do you not know the difference?

 

Funny, I thought we were talking about Obama.

Evidently, it never occurred to you that the American people handed Republicans the House and later the Senate in order to halt Obama's harmful policies, which is a good thing. Of course, this happened after Democrats controlled both the White House and Congress and they could do anything they want, like kicking the economy square in the nuts by enacting ObamaCare, raising taxes, etc.

You can conveniently overlook this to your heart's content, but the American people aren't obliged to ignore it along with you, and they didn't. We all know what incoming Senate Minority Leader Chuck Schumer confessed some time ago - that Democrats should have been working to encourage economic growth instead of working to discourage it.

But, what were we to expect from a president who was focused on fundamentally transforming the United States of America and "pivoted" to the economy only when it became politically expedient to do so? Him and his party are strikingly similar to the former president of Egypt and his party that got thrown out of office because they were focused on fundamentally transforming their society instead of taking care of the people's priorities - jobs and the economy.

Unlike world socialism, which fully crashed in the late 1980s and early 1990s, world capitalism isn't going anywhere, comrade. Furthermore, I expect Trump will get the economy growing as it should have done earlier, and judging from the Trump Bump the markets are signaling their optimism, as well. The best thing that could possibly happen for our economy has already happened - the Babeuvian Illiterati have been driven from power in Washington and exiled into the political wilderness to contemplate their failures. Things can only get better.

 

President Bush got down to 4.4 percent unemployed.
So why didn't that prevent the recession?

 

This is why people say the right is full of BS. "Government workers" don't design systems or tax forms and you know it. My wife worked in government jobs for 30 years and I saw how much she praised her coworkers and how much dedication and care she put into what she did. So spare me your false vilifications.

-and policy recommendations and selection of bills to sign into law and the "bully pulpit". So I guess you are blaming primarily the republican congress. That would be more appropriate.

Even Trump by working with Carrier did not create jobs. And it was Carrier that saved those jobs. I hear it was Indiana that gave some tax breaks. But Carrier could have smote those and moved anyway. I am simply making your argument for you prior to you doing it in a year or so.
[/QUOTE]
And that is another subject.

- - - Updated - - -

Can you not follow a conversation as simple as this is?

 

Your point about the Federal Level made no sense. A few rich progressive population centers experimenting with their minimum wage is no indication whatsoever of what would happen in a rural area with a higher minimum wage.

 

I'm aware, and what I said doesn't at all refute that. I'm saying if the minimum wage gets increased to 15. I'm fine with that. As long as the rest of us get a raise to, and prices remain the same. But that's typically just not how it works.

 

Right. Righty Rule #31: "When your argument is exposed as irrelevant, attack the poster's comprehension and intelligence."

This and your persistence in pursuing theory make your current argument invalid too.

 

So far in Seattle the current 10% raise in minimum wage has produced a 1% decrease in labor for a labor elasticity of about -0.1%. Further increases will accordingly reduce labor in minimum wage jobs.

 

You were asking me to explain and substantiate a concept of economics, which you fundamentally reject. I wasn't the one who rejected the market system and capitalism, you did. I explained the chart I posted because I wanted to underscore to others who were following along just how simple and fundamental the concept was.

 

McDonald's To Install Ordering Kiosks Instead Of Paying People $15/Hour



Low wage no benefits part time jobs don't do much for the economy as we can clearly see by the less than 2% mean GDP growth for all 8 years of Obama's stagnant malaise Presidency. Many minimum wage jobs will simply disappear being replaced by technology if the minimum wage goes to $15.00 an hour.

 

"Raising the minimum wage is good for the economy." - raising the minimum wage is good for INFLATION - corrected.
You're welcome.

 

The minimum wage in Australia is over $15 an hour.
I vacationed there in 06.
The price of food was comparable to a McD's in the U.S.
Other than the red beet they put on their version of a quarter pounder, the food was much better than the U.S.

 

Which would be less than $15 an hour here.

 

Congress will see it within my first 100 days after being elected as an independent to Congress. I'm tired of incompetent losers trying to micromanage a system of finance, to which they have less experience than a freshman in any university. As for proving my claims that an arbitrary rise in the minimum wage will also lead to the rise in prices:

Here's this

And this is the profile of the minimum wage worker.

As you can see, "raising" the minimum wage doesn't fix the problem. At best, it sets a new price equilibrium. Rather, I promote a Living Wage. An idea promoted by Richard Nixon that was never passed, but I created a formula that should get passage by both conservatives and Liberals. Tie it to the median of GDP(currently, that aforementioned $15.00). And have it funded by a Fund(similar to how Social Security operates), off of taxes.

That is a constructive way of using taxes to give back to the people.(We may not even need the taxes per say. If as part of a Federal Government. We could just print it.) And I argue, this would be a good use of money: Raising people's standards of living and thus, raising up the overall economy.

And how would we supplant it? I've advocated for numerous programs including state-of-the-art training facilities that would basically enable the training of any employee for any situation. We'll provide the resources to train with, all businesses have to do is to provide the trainers and then after that, hire them. It'll be like a School for Workers. And therefore, the absolute guarantor of employment.

And since businesses no longer have to train the workers(or buy the resources anyway), that's MAJOR cost savings ontop of the more friendly tax rates(present tax rates were among the worst in the developed world. Only in Sanders's world would the US government being uncompetitive, lead to actually inspiring businesses to be here.)

By the time I'm done, give it 3-5 years. America will be a world class power again.

 

Aren't increases in minimum wages supposed to increase wage levels? Yet wage levels just bit the big one. How can you reasonably claim to support higher wage levels and support flooding our country with illegal immigrants that work for wage levels that undercut our domestic workforce?