Economics: Minimum Wage, Who Gets Hurt?

[K@th]

What's the price of milk where you are? What's your minimum wage?

One is 6.75, the other is 8.25

How is this relevant?

[DBTrek]

That's the core contention isn't it?

Employee says "Hey, I'm not getting paid enough."

You say "Well go to your boss, and demand a raise, if you don't get the raise, well I guess you're not worth that much."

Employee then either enacts legislation or creates a union (or does both) and you go: "Hey, no fair!"

Does enacting legislation or creating a union magically improve the workers productivity? Nope. It simply coerces employers to fire employees or pay them more than they produce (which will ultimately lead to firing them).

[jediuser598]

What's the price of milk where you are? What's your minimum wage?

One is 6.75, the other is 8.25

How is this relevant?

The price of milk where you are is 6.75 a gallon!? Holy fuck.

It's relevant because if minimum wage was the sole factor determining price, then if minimum wage is higher, then the price of milk would be higher.

The minimum wage where I live is $11.50. The price of milk is $2.38 a gallon. Why is the price of milk where you live higher? Your minimum wage isn't higher than mine.

[K@th]

The minimum wage where I live is $11.50. The price of milk is $2.38 a gallon. Why is the price of milk where you live higher? Your minimum wage isn't higher than mine.

I'm confused by your premise. The higher the minimum wage, the lower the cost of milk?

It seems to me that the economy is a quite a bit more complicated than that.

[Fife]

MILK! ALUMINUM!!!

[BjornP]

That mean if you didn't have a minimum wage, milk would be ∞$...?

[jediuser598]

The minimum wage where I live is $11.50. The price of milk is $2.38 a gallon. Why is the price of milk where you live higher? Your minimum wage isn't higher than mine.

I'm confused by your premise. The higher the minimum wage, the lower the cost of milk?

It seems to me that the economy is a quite a bit more complicated than that.

That's not my premise. My argument is that just because minimum wage goes up, doesn't mean the price of everything goes up. If that were the case, if minimum wage were the sole deciding factor (like a rising tide) then if minimum wage went up, then the price of things would go up. Minimum wage is not the sole deciding factor in the price of say, milk. As evidenced here. The price of milk is higher for you, even though your minimum wage is lower. Why?

I'm arguing that the price of milk is more complicated than "well minimum wage went up, so the price of milk will too."

[jediuser598]

Guys, all I'm offering is real world data, and simple logical arguments. Data you can check yourselves. I feel like I'm getting a fight for just stating these two things, how am I misrepresenting the data or making bad arguments? I don't understand.

[DBTrek]

How's the sugary drink tax going lately in Seattle? I haven't seen anything in the stuff I read lately.

Did you see this one?
https://www.marketwatch.com/story/2633- ... 2018-01-10

[K@th]

The price of milk is higher for you, even though your minimum wage is lower. Why?

Labor costs are only one cost of doing business. Many more costs go into the total product cost. Using milk as your only metric is silly.