Posted on 01/06/2018 3:27:48 PM PST by free_life
We have been raising the minimum wage for 78 years, and as a new study clearly reveals, 78 years of minimum-wage hikes have produced zero evidence of the "job-killing" consequences these headline writers want us to fear.
In a first-of-its-kind report, researchers at the National Employment Law Project pore over employment data from every federal increase since the minimum wage was first established, making "simple before-and-after comparisons of job-growth trends 12 months after each minimum-wage increase."
(Excerpt) Read more at businessinsider.com ...
Well, in some economic discussions adjustment for inflation is necessary.
When discussing wages in the US, adjustment for immigration since 1960 must be made. Immigration, legal and illegal, has destroyed the average wage in the US.
If you were to back calculate average wages without the massive influx of cheap labor, I think the numbers would be surprising.
“making “simple before-and-after comparisons of job-growth trends 12 months after each minimum-wage increase.”
Ain’t a proper way to do the analysis.
That still can happen, but many firms are trying to cut compensation.
Heck, bonuses are not that common anymore. The market for engineers was flooded by H1B’s
If unemployment is low, and I have a business similar to joe’s down the street, I will offer more to qualified employees. Then Joe will if he wants to keep his business. No government mandate required.
Perhaps to garner time for the newly fired workers to get training and more qualifications for increased pay and be then hired?
And skew the numbers?
Over the last 20 years workers have been treated like shit and the globalist are having a field day. This is why I have little hope that the USA can avoid socialism. There really is no other choice. It sucks to be a cog in free market capitalist society that is slow growth and pits it workers against the 3rd world peasant. Sucks actually. A lot of Freepers are really old and living in the past and made their fortunes during the USA’s hay days..
So I believe that a: Troll Alert! is required...
There should be no minimum wage at all. I worked as a night clerk in the girls dormitory and did not care that I made less than minimum wage but the gov cared. I worked at Marten Theaters as a teen and made less than minimum wage until the gov jumped in and erased some of the job that were heavy on fringe benefits.
If one can work, get paid for it, and do ones’ homework at the same time why should the gov jump in to “protect us” and kill the job?
The market sets the price.
Jobs aren’t worth what some pointy-headed bureaucrat says they’re worth. If a worker was paid $7.25/hr yesterday, then an employer is forced to pay $15.00/hr tomorrow, where is that other $7.75/hr going to come from?
Should the employer raise prices to cover the extra expense? (if prices could be raised, why would the employer have already done that and increased profits?);
Should the employer cut the employee’s hours so the impact on his bottom line isn’t so great? Should he fire marginal employees that aren’t productive enough to warrant the higher pay? Should he outsource more jobs to Mexico, India or China? Or maybe close a factory in a high-cost state and relocate to lower-cost area?
Wages are a function of 2 things, primarily: worker productivity and supply & demand. If the worker is productive enough to generate significant profits for the employer, then they’re likely already above minimum wage. If a worker can readily be replaced by another worker at the same or lower wage, or other solutions (like robotics) then the employer will likely do that.
What is happening currently is you have an un-holy alliance between Democrats and establishment-Republicans (RINOs), that have allowed unfettered illegal immigration, which floods the market with low-skill workers. The Dems want the votes, and the RINO’s corporate masters want cheap labor.
The ONLY way to raise wages without damaging the economy in a free market is to have labor scarcity. When employers have 100 applicants for every job, this depresses wages. When employers have NO applicants for a job at a given wage, they have to then raise wages to attract employees. Right now, employers have the upper hand.
So what Trump is doing in securing our borders is the BEST way to cut the supply of cheap labor. What will follow is the movement of more and more un- and under-employed out of the U-6 unemployment stat (still 90 million+), and into the workforce. As these folks get jobs, labor will become more scarce, while these extra jobs and earnings result in greater economic activity. This will create a virtuous cycle that will make the 2020’s look like the Reagan 80’s - increasing wages in real terms across all income levels.
Great Idea!
Everybody would only have to work a couple of hours a day for a half million a year income! It would solve everyone's problems, it'd be Utopia!
When the price of hamburger goes up do all the hamburger joints raise their prices?
Nowadays, that is probably the IQ as well...
If minimum wage hike creates jobs, then quadruple it!
$100 minimum wage!
Wage and price controls destroy. $0.10 bread. $0.10 gallon gas.
The latter creates long lines. The former create shortage.
But unionists are ever so stupid, ....
Google is your friend. Here is the correct link. i tested it and it works fine in my browser.
Not exactly kosher to try and score a point by virtue of the fact that the poster messed up the html href format for this site.
You don't like facts huh? Maybe you should go back to the DUmpster.
Or remove the federal minimum wage and let the states or employers decide what the minimum wage should be.
The executive director of the National Employment Law Project, Christine Owens, donated $2,500 to Barack Obama (peas be upon him) in 2012 (and a variety of other democRat candidates over the years).
https://www.opensecrets.org/donor-lookup/results?name=Christine+Owens
Wow, that’s a relief. I was afraid labor responded to the price/demand curve like every other limited resource in the universe.
Yes in theory but in reality with 94 million unemployed it does not work that as way.
Most businesses will pay as little as possible, as we have seen these last 45 yrs. Wages are away behind inflation rate and CLE has shipped millions of jobs where wages are .17 cents an hr. Yet you still believe in a free market force that workers prosper in.
Greed rules and is alive and well.
cle?
As anyone in sales knows, your worth is determined by what anyone is willing to pay you
That worth is essentially determined by two things.
-How valuable your job skills are to potential employers
-How much an employer wants and needs those skills.
How much or how little your rent is does not have any effect on your value to an employer. Higher rent does not make you a more productive employee.
A government mandated minimum wage is based on none of that. It is an arbitrary political determination.
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