WaEx:
Praise be, we now have the economic research to prove that higher minimum wages have no ill effects, so let’s push onward to $15 an hour for all, right? I predict that’s what will be said about new research, even though that’s not what the research actually says.
The new paper is published in the top economic journal of them all, and certainly the author, Arindrajit Dube, is an excellent researcher. It’s thus fair enough that we take seriously the result, but we need to be very sure of what we’re claiming is the result.
There are few ill effects of minimum wages around the levels that the U.S. has currently or has had in the past few decades. The basic insight learned is that ill effects will come when a minimum wage “bites”: when it actually affects the wages being paid to any significant number of people or affects those paid to any particular group significantly. Given that, as the paper points out, only some 2% of workers actually get the federal minimum wage, the effects just aren’t going to be large. We can see some effects among those already disadvantaged in the labor market (for example, teenagers, African-American, or those without a high school diploma). But even there the effects are mild, simply because that minimum wage is low.
the effects of a ‘minimum wage’ are obvious to anyone actually paying attention to basic economics
the effect of ‘minimum wage’ establishes ‘minimum’ … the minimum point of ‘value’ of compensation for labor. specifically unskilled labor that must be trained to do the most mundane tasks … the labor that needs the most attention by management, making the hiring of these Ocasio-Cortez’s the most cost-intensive in terms of value for production
‘minimum wage’ hurts business by decreasing it’s ‘bottom line’, taking increase in profit from the business owner (& the persons that have taken the risk) & increases inflation. anyone advocating ‘minimum wage’ has never ran a non-corporate business.
‘minimum wage’ destroys small business … but, that’s the point, isn’t it?
If $15 per hour is good, isn’t $115 even better?
as anyone with any sense knows, the ACTUAL minimum wage is $00.00 per hour…that being what i will pay you for not working for me……if you actually want to work for me, you will accept the wages i offer, or not…..
up to you….up to me…..we decide……we find a mutually agreeable number….
we mutually decide to tell the government to go cure cancer, build new sewers, or do something else useful…….
If I’m an employer, the reason I hire a worker is that I expect that the goods or services I’ll get from that worker will increase the cash flowing into my business from customers and clients. If I expect that an additional employee can bring on average $14.00 per hour into the business, I’m not going to hire a worker and pay $15.00 an hour.
That worker might be really anxious to earn some money and might be eager to work for $12.00 and hour, and I’d be willing to pay that. But if the govt forbids that, it prevents me from making an extra $2.00 an hour and prevents the worker from earning anything at all.
Minimum wage laws are abusive to both employers and workers with little or no experience or ability to perform at high levels of productivity. Minimum wage laws are WRONG.
Yes. That 15 dollar an hour employee should be bringing 45 dollars an hour into the fold. I was a pleb all my working life. In order for me to be just I needed to bring in cash. I worked for 15. I was paid 15. The taxes were 15, the insurance was 15. The retirement was 15. You better be more than three times into the fold to be commensurate.
They paid me 110 thousand a year because I was worth 300 thousand. That’s how it works.
‘I support the 15 minimum age’
~J Biden(d)
Yes, a nationwide $15 minimum wage would be quite damaging
Isn’t that the whole Marxist goal?
The effects of a 15$ minimum are easy to predict,
Jobs not worth that much will either be eliminated or replaced by robots before the more skilled jobs are replaced with them.
These intrusive slugs are stepping way beyond their bounds as they so often do and the public is left with the consequences. It’s not possible to name a single act they’ve done that hasn’t left an expensive mess.
There’s no direct negative effect for them so on they go.
Somebody please show me the part of the Constitution that authorizes any kind of “minimum” wage.
And don’t mention the “Commerce” clause – cuz that’s bullshit.
“That which is not specifically allowed by the Constitution is forbidden” – and THIS was the proximate justification for the Civil War – that since the Constitution made no mention of secession it was forbidden (how to enter was explained, but not how to exit).
So, it’s another usurpation in a long line of usurpations – if a man owns himself (ie – is not a slave) then he can bargain for whatever price he chooses for his labor. If he says: “I can’t possibly work for less than $15/hr” then he has the option of starvation. The FedGov has no notion of what MY worth may be.
This is the essence of socialism – to demand that zero be called “fifteen.”
And the country debates this unadulterated bullshit as though it’s meaningful – while ignoring the substance.
izlamo delenda est …
Penny candy now $15 a piece.
History lesson America.
When I had to send resumes (years ago) the first 2 letters behind my name did not mean I was a Bad Ass but my Econ degree.
Before we had a min wage 1.5 – 2% unemployment were the “norm” When unemployment was over 2$ it was a “PANIC” (what we called depression/recessions 150 years ago. After min wage the “norm” became 3%. with each increase the “norm” also increased.
UNCLE AL
You are almost right. these laws hurt workers much more than employers. But not mentioned, AND IT NEEDS TO BE MENTIONED, they hurt the taxpayers. Before there was a min wage there was no need for Unemployment pay. As the “norm” for those out of work increased the “need” to pay these folk increased. Who pays the folk not working? Well? It is those working by paying more taxes.
REAL (as contrasted to “nominal) living standards for America’s workers have “stagnated” (Jimma was right in what he said; even though he lied.) since it became law. When economists talk about REAL GNP they mean the things made – # pork bellies, TV’s, cars, trucks, tons of steed ….. Most liberals talk about the “Nominal” GDP. wage because with the rapid decline in the $ purchasing power the # of $ has grown rapidly even though total “goods + services” may actually shrink.