Skip to comments.What’s behind a fair minimum wage? | As It Turns Out ($15 'not necessarily socialism')
Posted on 02/05/2014 2:58:22 AM PST by Libloather
The Bureau of Labor projects the majority of jobs developing to be low-wage service jobs. Is this the fault of the unemployed who are still out there looking for decent work, or is this the fault of big businesses who have greedily outsourced their production jobs for increased profit?
There was an article a couple of years ago about Henry Ford. He paid his assembly line workers a $5 per day back in 1914 (thats $118 in todays dollars, according to MeasuringWorth.com). He did this because he wanted to increase productivity and reduce turnover and if his employees could buy his cars, all the better for him.
That isnt necessarily socialism, folks. Thats just good business.
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Nancy Pelosi avoided it too
If its good business the good business owners will do it thrive.
That brand is long gone...wonder why??
Ford paid his workers such a then- high wage fro basically two reasons:
1. There was a labor shortage..He needed to attract workers, especially from competitors.
2. Ford had introduced the assembly line. Workers were very resistant to it at first..it was totally different from anything else..so he needed the higher wage to convince them to come work and try it..
And that was Henry Ford's decision to make, not the government's to mandate.
Raising the minimum wage for a larger area will have the effect of cheapening the wages of those making more through inflation, and thus damage the middle class (some more).
I believe that is the Marxists' desired effect.
If it is a local phenomenon, it will make the landlords and real estate brokers a bundle (and increase tax revenues--gummint can be greedy, too), but the average person will suffer in the long run--especially if they are on a fixed income.
There is no such thing as a “fair” wage except in the minds of the employers and the employees. In a free market, it’s an agreement/contract between the 2. What you offer and what I accept are transactions between free adults in a free market. What they agree to is “fair”.
In reality, however, we do not have a free market. It is so rife with government involvement, cronyism, efforts to influence prices and wages by means of illegal immigrants, and market distortions by everything from the EPA to the IRS to NAFTA that the entire discussion has become a political tool to appeal to voters.
From that standpoint, any effort to arrive at something “fair” is impossible.
I imagine that in our era the closest to a “fair” wage is to own your own business and at least have the opportunity to make your own “fairness”.
Why stop at $15 make it $25.
Hardly true of the current minimum wage labor market.
Note that Ford raised his wages on his own accord...not forced by the government
His competitors weren’t happy...they wanted government to stop Ford from raising wages.
It will have the effect of narrowing portals of entry to the workforce. Fast food restaurants may have 100% or more annual employee turnover rate. Most leave when they find better jobs. According to company estimates, one in every eight American workers has been employed by McDonald's at some time. If half the jobs in a fast food restaurant are replaced by automation, that's half as many who will gain entrance to the work force. (It does create a permanent underclass of Democrat voters who are dependent on the government for their every need.)
Plus Ford wasn’t dictated to by the fed. gov. He made a business decision...just like the owner of any other business. What Ford did had nothing to do with raising the minimum wage. If Ford couldn’t have paid his workers that money, he wouldn’t have done so. That’s a lot different than the gov. telling a business owner what they have to pay their workers.
Let’s go for PERFECT “Social Justice”. Everybody makes 25$ an hour, period. Celebs, Lawyers, Doctors, Athletes, Celebs, even the unemployed. We would have a perfect equal society, no?
Back in the mid 1980s I could buy 4 books for $20 now two paperback books cost me that. Minimum wage has increased the cost of living.
The automation created to replace low skill workers in turn creates a higher paying, higher skilled job for someone to maintain and repair the automation equipment. That job will not go to a minimum wage flunkey.
True that. And unfortunately, it's not a 1:1 ratio -- one tech might maintain dozens if not hundreds of machines.
More low-skill workers trying to enter the workforce will have no minimum wage job experience on his or her resume to prove to other employers that he can show up at work on time and follow instructions.
"Obamanomics -- expanding the permanent underclass!"
Ford paid what he did, at his own option, because it was good for his business, and not because the government forced him. He also expected more than $5 a day in value from his workers.
And that was Henry Ford’s decision to make, not the government’s to mandate.
We HAVE a winner...no more calls please.
:: The Bureau of Labor projects the majority of jobs developing to be low-wage service jobs. Is this the fault of the unemployed who are still out there looking for decent work, or is this the fault of big businesses who have greedily outsourced their production jobs for increased profit? ::
How about market forces performing as designed?
If, as an employer, I had need for a worker and the regulators said that $10/hr was fine with them...
Well, by golly, if I hire from outside the company that ^VP of Operations^ opening will be $10/hr to start.
You forgot politicians.
You forgot politicians.
It’s kind of a moot point - it’s just about impossible to start a small business these days, anyway, so they can set the minimum to whatever their large campaign contributors’ government preferences can bear.
Behind the minimum wage increase effort is Obamacare.
To pay the increased taxes, a general wage increase is needed. An increase in the minimum wage provides the inertia to increase all wages across the board.
Wage inflation is absolutely required for Obamacare to be sustainable.
The assembly line was a big reason. If workers are assembling cars the old way, then it is not a huge problem if you have an absentee problem. You can just shift a few workers around and produce fewer cars that day. On the other hand you need a minimum attendence in every position to keep the line running. The high pay was combined with firing for absense and drunkenness to improve productivity. But that was Ford’s choice, not the government’s.
Unaccountable totalitarians need to hide their plunder of the currency, the devaluation of the fiat paper, from the masses. Enter their accomplices/co-conspirators, the corrupt politicians, as champions of the downtrodden raising their minimum wage.
Root cause? Never addressed.
Socialism Is Legal Plunder - Bastiat
As the dollar becomes worth Less and Less...
increasing minimum wage keeps you the same OR LESS than before..
It’s a shell game by democrats knowing democracy is a lie..
Democracy is and always has been Mob Rule by mobsters..
A protection racket by Gov’t protecting you from (( THEM ))..
Wow...Marilyn is simply clueless.
She is aghast that some states don’t even have a minimum wage... With the Feds dictating what the minimum is...why bother, but I guess that doesn’t even occur to her.
Weapons Grade Stupid.
A minimum wage historical graph
Now, legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, MINIMUM WAGES, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole with their common aim of legal plunder constitute socialism.
Legal Plunder Has Many Names - Bastiat
IIRC the people who worked the line in a Fords factories worked 12 hour days, six days.
her push is tha $5 per day, to $118 per day / 8 hours per day is $14.75 per hour....eerily similar to the $15.
In those days the was no EPA, OSHA, worker’s comp or anythign else....
She’s cherry picking the facts
Socialists have never figured out that people are not static playthings that can be manipulated at will. Everyone changes their habits to move to the path of least pain.
Look, if the government is going to mandate a nearly 100% increase for low skilled jobs I think it is only fair they mandate a similar bump for highly skilled workers. After all, they claim they are all about fairness. You don’t want to dis-incentivize (or whatever the BS buzzword is) skilled workers, do you? Well, fair is fair, I want a 100% increase too. I guess that means the government will have to set wage standards for everyone...hmm, wages will determine where the talent goes...starts to look like a centrally planned economy, doesn’t it? We all know how well those worked out in the 20th century...
Don’t forget POTUS, SCOTUS, senators, congressman and others in gov’t.
The same thing happened when the Alaska Pipeline was built.
An unskilled worker should be getting around $70 an hour now.
A skilled worker should be getting around $100 to $150 an hour now.
The spouse should not have to work outside the household.
Yep. I had a cousin who went up there to work who made enough money to take a year off and play afterwards..