Skip to comments.US Minimum Wage Is Pretty Low Compared To Some Countries
Posted on 02/13/2013 11:42:21 AM PST by SeekAndFind
President Barack Obama proposed last night that the United States raise the minimum wage to $9.00 per hour.
While that may seem like a massive raise for low earners — the current minimum wage is $7.25 per hour — we learned that when accounting for the impact of inflation this would be far from the first time that the United States minimum wage exceeded $9.00 in 2012 dollars.
There's an even more comprehensive look at how the United States minimum wage stacks up, and that's by comparing it to other nations.
Take a look at how the minimum wage levels in member nations of the Organization for Economic Co-operation and Development, the economic club for rich countries:
stats.oecd.org and en.wikipedia.org
Among OECD nations, every single country that pays a higher minimum wage than the U.S. pays upwards of $9.00 U.S. dollars per hour.
Australia, the nation with the best minimum compensation on the list, has a minimum wage equivalent to $15.75 in U.S. dollars.
(Excerpt) Read more at businessinsider.com ...
Make it a million dollars a year and we’ll all be RICH!!!!
A country with a minimum wage is what is called “fascist”. At least to a degree. It is also not free.
What’s the point, Walter? Should we raise it to $15 per hour too? Or $20 per hour? Is that going to solve our problems?
RE: Australia, the nation with the best minimum compensation on the list, has a minimum wage equivalent to $15.75 in U.S. dollars.
John Stossel made this observation:
the Australian government raised minimum wage to A$15 an hour (about $15.30 USD). It’s more than double the federal minimum wage in the United States.
Statists say that Australia is proof that minimum wage laws help workers. They point to Australia’s 5.1% unemployment rate.
But statists ignore the details.
Most people who earn minimum wage are young, unskilled workers. How are they doing in Australia?
In June, Australia’s unemployment rate for workers age 15 to 19 was 16.5%.
Last December, 63% of all jobs lost were jobs for young, unskilled Australians.
It’s simple: when the price of something goes up, people buy less. So when the price of labor goes up, employers hire less.
When the Wall Street Journal reported the minimum wage increase in Australia, it called the law “a victory for unions.” But that seems strange because union workers normally make more than minimum wage.
But it is a victory for unions because union bosses know that raising the minimum wage reduces competition from unskilled labor. Union support for minimum wage laws is entirely self-serving.
The unseen consequences of minimum wage laws are the millions of poor, disadvantaged people who don’t have job opportunities. In the United States, it hurts poor people and inner-city minorities. In Australia, it hurts young workers.
Australia is an example of how minimum wage helps some groups, and hurts others. Even in a good economy, the young, inexperienced workers are left out.
Why do these boobs always try and compare us with other nations? I sure as hell don’t want to live in another Country with their systemic problems.
RE: Should we raise it to $15 per hour too? Or $20 per hour? Is that going to solve our problems?
If you really want to hurt the unskilled, inexperienced, and the entry level youth, and help the UNIONS, yes, by all means do it.
That happened in Australia, it will happen here also. The laws of supply and demand are universal.
I’d like to see the minimum wages plotted against the cost for a typical hamburger or beer in each country.
The minimum might be generous in scandinavia, but it still costs an hour’s wage to but a lunch. I recall $10 for a small glass of crappy beer at a crappy joint in Copenhagen, and $20 for rock bottom buffets. So, tripe the wage, and tripe the costs of living.
Aren’t public employee union wages indexed to the minimum wage?
The very idea that the government would establish a single rate that is applicable in NYC as well as rural Alabama reveals the idiocy of such an idea.
The core of support for a minimum wage is primarily the unions who seek to kill those non-unionized shops who are more competitive on the cost of labor.
Additionally, it is inflationary and ultimately hurts those at the bottom of the economic ladder.
Minimum wage should be a state issue.
Business Insider is Barry’s and the ‘RATS’ “business” rag. However, if this chart is correct, why aren’t those countries with a minimum wage higher than the U.S. being overrun with illegal aliens?
The following message was published many years ago, utilizing Professor Dr. Walter Williams' warning about the negative consequences of minimum wage laws on families and those who most need work experience and earnings. His words were true then, and he has repeated them on Stossel and in other venues more recently. That's the great thing about enduring principles: they don't change with time.
Dr. Williams understands and has been teaching, speaking, and writing about the tragic consequences of the so-called "progressive" policies which Democrats have inflicted upon Americans--all in the name of "helping" them.
Slavery to government is no better than slavery to individual masters. Yet, the "regressives" continue to buy power and influence by promoting policies that destroy opportunity, prosperity, and freedom for our own and future generations.
Apart from the standard “Business Insider” warnings...
This is hard to compare; it’s one element in a 4-5-6 variable equation and to me, the premise is goofy.
Without going thru each nation on that list, most of the Euro countries have pretty narly VAT taxes which raise the price of things considerably. These are generally in the range of 17% IIRC, and they can apply to many of the separate stages of processing for manufactured items. I am in no position to tell you what the price of a pair of jeans is in Luxembourg, but I can tell you that a beer in a bar in Denmark or Sweden or Norway is a solid $10, a pair of entirely average jeans is $75 or so, as is an entirely ordinary dress shirt.
Additionally, while higher university-level education and cattle-grade healthcare in those countries is free in most cases, income tax rates are astronomical compared to ours. Nor can I state without snide and denigrating implication what the intended purpose of flushing so much “public” money through governments’ hands taking it away in the form of taxes levied on everything but rebated in the form of higher wages (I was told that min wage in Norway was about $25 when I was there in 2005)
But my point is that examining one component of a multi-variable equation is less then useful. However, the MSM is less then useful and I have no doubt that a whole squadron of stenographers has been dispatched to blather about the righteousness of everything and anything 0bama wants to inflict upon us...and they are eager to comply with their marching orders.
Paul McCartney unemployed?
What was it here in the US?
I found a stat for 16-24 year olds that says the unemployment rate for that group was 17.1%. I don't know which way the number would move if we narrowed it down to 15-19 year olds.
It is why when you go into a grocery store in much of Europe you will see one or two checkers and very deep lines. ( incidentally much of Europe technically does not have a minimum wage but wages are set by... you guessed it...unions)
Also the same reason, you can go into the same McDonalds for a year or more in Europe and get the same cashier. No mobility in these crappy jobs because finding one is not so easy.
Also the same reason a value meal is $15 in most Euro cities.
What’s the unemployment picture like for the countries with a lower minimum wage than the US listed in the OP’s graph? If you’re argument is sound, i.e. higher minimum wage = higher unemployment, then youth unemployment should be better in those countries, yes?
Raise the minimum wage, create more jobs for illegals... More companies will employ people “under the table.”
If people knew the whole truth behind the minimum wage, I'd surmise that the 20% number would increase substantially.
Pictured above is Frances Perkins (note the look of evil in her shark-like, beady eyes and the haughty smirk as she merrily shreds the Constitution) who was part of Franklin Diablo [sic] Roosevelt's so-called "Brain" Trust. She, as much as anyone, is why we have the monstrosity called the minimum wage. This was an utterly wicked woman who headed the U.S. Secretary of Labor during FDR's reign of terror. Along with her follow communist colleagues, Harry Hopkins and Henry Wallace, tremendous damage was done to America by that trio.
In my opinion, the minimum wage is unconstitutional since it's nothing more than a modern form of slavery. Why? It prohibits a worker and employer from agreeing on the price for services. Personal liberty and freedom are destroyed because the minimum wage sets a false bottom. Philosophical and constitutional argument aside, everyone (even the 80% you alluded to) can't help but recognize that the minimum wage is a job-killing tool. Abolish the minimum wage and make Right to Work universal and watch the American economic engine come roaring back to life. Without these burdensome brakes on business, our manufacturing base and service sectors will be the envy of the world...yes even in Australia.
Tomorrow’s installment: US Ranks Far Behind Other Countries in Paid Vacation and Sick Time.
Yes, but it’s been essentially settled since the 1930’s. I doubt you could get more than 20% public support to repeal minimum wage laws.
Yeah, I know. It’s a principle thing for me. I have no delusions about who our government really is and my relationship with it.
and the point of this article is....?
And the unions don’t realize it but they are a powerful force behind the development of robots and machinery designed to replace their expensive workers.
If you want to build road and bridges like China, make minimum wages equivalent to China. Then Illegals will be running back to Mexico for job. Mexico minimum wage is higher than China.
The real minimum wage is zero: unemployment. Thomas Sowell
Economists have recognized for decades that minimum wage laws result primarily in increased unemployment among the most vulnerable sectors of society, specially poor unskilled teenagers of racial minorities.
The amount of evidence to back this is huge, but still people refuses to accept that just because it sounds like a good idea to magically give poor workers a raise it doesnt mean that it actually works this way.
Ironically the main groups that consistently lobby to raise the minimum wage are unions of skilled workers that already earn much more than the minimum wage, and big business in the retail market who offer salaries slightly above the minimum wage.
This unholy union of unions and big business can be explained if one looks at the real consequences of raising the minimum wage: unskilled workers that might be able to compete with unionized workers thanks to their lower salary are put out of work safewarding the jobs of the well off unionized workers. At the same time small retail business that have very small margins are driven into bankruptcy by big corporations that take advantage of economies of scale and can afford to pay their workers salaries slightly above the minimum wage.
If our goals is to improve the economic situation of disadvantaged workers probably the best known strategy is a negative income tax, this doesnt create negative incentives and preserves the existing positive incentives, it doesnt directly increase unemployment or hurt small business.
Reduced employment opportunities is one effect of minimum wage legislation. The minimum wage law has imposed incalculable harm on the disadvantaged members of our society. The only moral thing to do is to repeal it. Walter Williams
Yes. Not only that private sector unions use increases to base their demands for more pay. Union jobs do pay more than minimum wage but when it goes up, they count union wages as losing ground and demand that employers raise the bar to keep the differential.
[Geary is demanding a large bribe for a gaming license] Senator Pat Geary: I want your answer and the money by noon tomorrow. And one more thing. Don't you contact me again, ever. From now on, you deal with Turnbull. Michael Corleone: Senator? You can have my answer now, if you like. My final offer is this: nothing.
Here's another little item. There are a lot of contracts out there that require employers to pay their workers (A) specific multiples of the minimum wage, or (B) the negotiated hourly wage plus a cost of living adjustment, whichever is higher.
Here's a hypothetical example.
Suppose an employer is required to pay a "Machinist III" with five years of seniority $30.00 an hour plus COLA, or four times the minimum wage, whichever is higher. Usually COLA gives workers like our fictitious Machinist III an annual raise between 2% and 4%. But Obama wants to give him a raise to $36.00, which is a 20% raise.
Multiply that across the entire workforce at some of these unionized companies and you can see why it's a real disaster for the employers. As if Obamacare and all the other new laws and regulations weren't bad enough.
You beat me to it!
Stuck on stupid. Raising the min. wage will do nothing but make whatever small amount of savings anyone has left worth even less and will cause the price of everything else to rise. Sure, $9/hr. will go a long way when the price of a loaf of bread is $10.
There's the payola for the Union vote in 2012.
Arent public employee union wages indexed to the minimum wage?>
They may well be but I’m not familiar with their contracts. What I am familiar with are automotive (UAW) contracts that have a built in clause whereby a 25 cent raise in minimum wage makes a 75 cent UAW member raise an automatic. No negotiation necessary, it’s automatic. Little wonder unions support a push for higher minimum wages if this is the norm.