Economics: Minimum Wage, Who Gets Hurt?

[jediuser598]

I would argue it's inefficient to have surplus labor.

You would be right. Among are populace there exist people whose labor productivity is well below $7.25 an hour. This surplus labor is reflected in actual “unemployment”, since the minimum wage means that anyone failing to produce at least $7.25 of productive labor per hour is unemployable. They’re just sitting around with nobody able to pay them for whatever productivity they can muster.

Raise that to $15 an hour and your surplus labor (unemployment) will grow accordingly. The inefficiency will grow worse.

Right on.
You got it.

Ever consider that those who are working are actually producing more value for that company than what they're currently being paid? I would like to see them fire their barebone crews of experienced people who not only mesh with their current operations but actually make their store operate every day. Just because that's all they are demanding doesn't mean that's all they're worth. Hah, now that you say that, I do have a real world example of this!

I used to get paid $8.25 an hour in Illinois. Now I get paid $11.90. I still basically put out the same effort, but I'm getting paid more. Minimum wage did that.

[Fife]

Switzerland has a 3.3% unemployment with *no* minimum wage.
/shrug

Washington State has a 4.5% unemployment rate. And our most prosperous city, Seattle, with median home values of $727,400, has the same unemployment rate that the nation of Switzerland achieves through not having a minimum wage at all.

Needless to say, not too many minimum wage workers living in Seattle.

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

[SuburbanFarmer]

“Unemployment” only counts people that receive unemployment benefits. Not the idle labor force.

While a majority of people make more than $8hr, there is a much larger number of them making less than $15/hr.

When you give consumers more money, and increase labor cost, prices rise

These are 3 facts that cannot be disputed.

[Fife]

Ever consider that those who are working are actually producing more value for that company than what they're currently being paid?

Ever consider that you are especially ill-equipped to decide what the price of labor for a particular company (in which you have a big fat ZERO skin-in-the-game rating) should be?

[DBTrek]

Ever consider that those who are working are actually producing more value for that company than what they're currently being paid? I would like to see them fire their barebone crews of experienced people who not only mesh with their current operations but actually make their store operate every day. Just because that's all they are demanding doesn't mean that's all they're worth. I guess we'll see though.

Ever think the entire point of hiring an employee is so they will add value to the company, rather than an owner busting his ass and taking all the risk so he can hand workers an exact parity of dollars to productivity?

If you think you’re bringing considerably more value to your employer than you receive in wages, demand a raise. If you’re right, you’ll get it. If you’re wrong, you won’t - which means the employer is willing to have you take your productivity and walk, rather than investing more money to keep it.

See how clean and simple economics can be?

[jediuser598]

Ever consider that those who are working are actually producing more value for that company than what they're currently being paid? I would like to see them fire their barebone crews of experienced people who not only mesh with their current operations but actually make their store operate every day. Just because that's all they are demanding doesn't mean that's all they're worth. I guess we'll see though.

Ever think the entire point of hiring an employee is so they will add value to the company, rather than an owner busting his ass and taking all the risk so he can hand workers an exact parity of dollars to productivity?

If you think you’re bringing considerably more value to your employer than you receive in wages, demand a raise. If you’re right, you’ll get it. If you’re wrong, you won’t - which means the employer is willing to have you take your productivity and walk, rather than investing more money to keep it.

See how clean and simple economics can be?

I went to the government for a raise. They gave it to me.

Or rather, moved to Washington State where the wages are higher. Did my productivity improve that much? Nah. I'm as productive as I used to be, but I'm still getting paid more.

Economics.

A lot of people who are paying their employees minimum wage are getting their employees at a discount. Those employees are producing more than they're being paid.

[SuburbanFarmer]

Ever consider that those who are working are actually producing more value for that company than what they're currently being paid? I would like to see them fire their barebone crews of experienced people who not only mesh with their current operations but actually make their store operate every day. Just because that's all they are demanding doesn't mean that's all they're worth. I guess we'll see though.

Ever think the entire point of hiring an employee is so they will add value to the company, rather than an owner busting his ass and taking all the risk so he can hand workers an exact parity of dollars to productivity?

If you think you’re bringing considerably more value to your employer than you receive in wages, demand a raise. If you’re right, you’ll get it. If you’re wrong, you won’t - which means the employer is willing to have you take your productivity and walk, rather than investing more money to keep it.

See how clean and simple economics can be?

Compare the productivity of an idiot at a desk job in 2018 to a genius in 1980. It's not even close.

Now compare their wages. Barely moved.

See how simple this is?

[jediuser598]

“Unemployment” only counts people that receive unemployment benefits. Not the idle labor force.

While a majority of people make more than $8hr, there is a much larger number of them making less than $15/hr.

When you give consumers more money, and increase labor cost, prices rise

These are 3 facts that cannot be disputed.

Disputed by the real world.

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

[DBTrek]

Compare the productivity of an idiot at a desk job in 2018 to a genius in 1980. It's not even close.

Now compare their wages. Barely moved.

See how simple this is?

It is simple. It’s about the job, not the person. If a genius wants to phone it in by taking an idiot desk job when they’re actually capable of producing more, they’ll get idiot desk job wages.

Simple.

It’s only complex to people whose dogma won’t allow them to accept the results of cause-and-effect relationships.

[jediuser598]

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!"