Minimum Wage

[matthewcline 0]

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"An increase in the federal minimum wage did create an increase in production costs, which subsequently resulted in an inflated price for consumers."

And then the costs was passed on to us the consumers, making prices go up, or inflating?

Dang.
Matt

For all the years the minimum wage didn't change inflation still happened.

Correct, it is not the sole cause, it is just one cause.

Matt

An Instructors first concern is student safety.
So, start being safe, first!!!

[SkydiveJonathan 0]

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"An increase in the federal minimum wage did create an increase in production costs, which subsequently resulted in an inflated price for consumers."

And then the costs was passed on to us the consumers, making prices go up, or inflating?

Dang.
Matt

For all the years the minimum wage didn't change inflation still happened.

Correct, it is not the sole cause, it is just one cause.

Matt

So nowhere near a 'huge' cause of inflation as some claim. Now add in the fact that the state is currently using QE to fight deflation where is the inflation risk?

[billvon 2,426]

>So nowhere near a 'huge' cause of inflation as some claim.

It is the largest single cause in terms of government policy driving inflation. There are many other factors involved in both actual wages and inflation.

[SkydiveJonathan 0]

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>So nowhere near a 'huge' cause of inflation as some claim.

It is the largest single cause in terms of government policy driving inflation. There are many other factors involved in both actual wages and inflation.

No it's not. What about interest rates? You take no account of the fact that at the moment the state is fighting deflation with QE. Why not fight deflation with a raise in the minimum wage?

[lawrocket 3]

We've had a federal minimum wage since 1938 in the US.

That you are bitching shows how useful it's been.

My wife is hotter than your wife.

[SkyDekker 1,141]

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We've had a federal minimum wage since 1938 in the US.

That you are bitching shows how useful it's been.

That logic just doesn't make any sense.

[billvon 2,426]

>Why not fight deflation with a raise in the minimum wage?

You could indeed do that; that would tend to raise prices. Glad to see you acknowledge that raising the minimum wage causes inflation.

[SkydiveJonathan 0]

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>Why not fight deflation with a raise in the minimum wage?

You could indeed do that; that would tend to raise prices. Glad to see you acknowledge that raising the minimum wage causes inflation.

So, according to your model, why not a raise in the minimum wage rather than more QE?

[billvon 2,426]

>So, according to your model, why not a raise in the minimum wage rather than more QE?

Because we are not seeing deflation. Inflation is between 1 and 3% a year even in this recession.

[SkydiveJonathan 0]

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>So, according to your model, why not a raise in the minimum wage rather than more QE?

Because we are not seeing deflation. Inflation is between 1 and 3% a year even in this recession.

So QE worked. Good old Keynes.

[lawrocket 3]

I'm referring to the minimum wage being something that does not increase the domestic well-being. The minimum wage has the effect of leaving the young and unskilled out of a labor market. It's why in places like Greece and Spain and France we see that there is massive unemployment with the young, uneducated, unskilled and immigrant populations. It is one of the things that is making the poor poorer.

Minimum wage is a technique of wealth redistribution. However, it is a way of transferring wealth and income from the poor to the middle class. While not designed that way, it is the unintended and logical consequence.

My wife is hotter than your wife.

[SkydiveJonathan 0]

Romney and Bain avoided the hostile approach, preferring to secure the cooperation of their takeover targets by buying off a company's management with lucrative bonuses. Once management is on board, the rest is just math. So if the target company is worth $500 million, Bain might put down $20 million of its own cash, then borrow $350 million from an investment bank to take over a controlling stake.

[SkydiveJonathan 0]

There is currently legislation before Congress to raise the federal minimum wage from its current $7.25 an hour to $9.80, over three years. After that it would be indexed to inflation.

Contrary to prevailing myths about who would benefit from a proposed increase in the minimum wage, 88 percent of the 28 million workers affected are not teenagers.

As the Economic Policy Institute has shown, the majority are full-time workers, and on average they earn about half of their families' income. And 28 percent of the nation's 76 million children would have a parent who would benefit from the raise.

Another oversize myth promoted by the fast-food industry and other low-wage employers is that raising the minimum wage hurts workers by increasing unemployment. Although it is theoretically possible to raise minimum wages enough to cause employers to hire fewer workers, there is hardly any indication from economic research that the proposed increase in the minimum wage would have this effect.

Employment in the overall economy depends on aggregate demand or spending, which is determined - especially in our currently weak economy - by macroeconomic policy, including the Federal Reserve, and fiscal policy.

[jclalor 12]

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There is currently legislation before Congress to raise the federal minimum wage from its current $7.25 an hour to $9.80, over three years. After that it would be indexed to inflation.

Contrary to prevailing myths about who would benefit from a proposed increase in the minimum wage, 88 percent of the 28 million workers affected are not teenagers.

As the Economic Policy Institute has shown, the majority are full-time workers, and on average they earn about half of their families' income. And 28 percent of the nation's 76 million children would have a parent who would benefit from the raise.

Another oversize myth promoted by the fast-food industry and other low-wage employers is that raising the minimum wage hurts workers by increasing unemployment. Although it is theoretically possible to raise minimum wages enough to cause employers to hire fewer workers, there is hardly any indication from economic research that the proposed increase in the minimum wage would have this effect.

Employment in the overall economy depends on aggregate demand or spending, which is determined - especially in our currently weak economy - by macroeconomic policy, including the Federal Reserve, and fiscal policy.

Any increase in the minimum wage would prevent us from competing with the Guatemalan manufacturing industry.

[Bolas 5]

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There is currently legislation before Congress to raise the federal minimum wage from its current $7.25 an hour to $9.80, over three years. After that it would be indexed to inflation.

Indexing an inflation cause to inflation...

Stupidity if left untreated is self-correcting
If ya can't be good, look good, if that fails, make 'em laugh.

[lawrocket 3]

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Employment in the overall economy depends on aggregate demand or spending

Yes. But you left out the other part of economics: COST. The more something costs, the less likely there will be DEMAND for it.

Thus, there must be a DEMAND for labor. As the cost of labor increases, demand for labor decreases. Thus, spending for labor decreases. Ergo, unemployment and underemployment are not decreased.

This is consistent with the above quoted statement. Why do you fail to put in the other side of the equation?

My wife is hotter than your wife.

[muff528 3]

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Employment in the overall economy depends on aggregate demand or spending

Yes. But you left out the other part of economics: COST. The more something costs, the less likely there will be DEMAND for it.

Thus, there must be a DEMAND for labor. As the cost of labor increases, demand for labor decreases. Thus, spending for labor decreases. Ergo, unemployment and underemployment are not decreased.

This is consistent with the above quoted statement. Why do you fail to put in the other side of the equation?

Because rich folk don't need to worry about the cost of anything. It's the same business model used by the government, GM, USPS, etc.

[SkydiveJonathan 0]

To hide the ugliness, corporate politicos and front groups have draped a thick tapestry of myths, lies, and excuses over the miserly wage. "The only people paid the minimum," goes one of their oldest dodges, "are teenagers working part-time summer jobs for extra cash." Not exactly--in fact, only 6.4 percent of these low-wage employees are teen part-timers. Contrary to the stereotype, the typical minimum-wage worker is an adult, white woman (including many single moms) whose family relies on her paycheck.

[SkydiveJonathan 0]

A study last year by Chicago's Federal Reserve Bank found that every dollar increase in the minimum wage produces an immediate bump in the next year of $2,800 per recipient in consumer purchases of everything from kids' shoes to vehicles. The Economic Policy Institute (EPI) reported in a 2009 study that even a boost to $9.50-an-hour would result in $30 billion a year in new consumer spending.

[matthewcline 0]

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A study last year by Chicago's Federal Reserve Bank found that every dollar increase in the minimum wage produces an immediate bump in the next year of $2,800 per recipient in consumer purchases of everything from kids' shoes to vehicles. The Economic Policy Institute (EPI) reported in a 2009 study that even a boost to $9.50-an-hour would result in $30 billion a year in new consumer spending.

By those already employed, but, did it lower unemployment? That would be a better test, yes? adding to the people spending, not just increasing a margin of spending, by those already spending.

Matt

An Instructors first concern is student safety.
So, start being safe, first!!!

[SkydiveJonathan 0]

Numerous in-depth studies show that hiking the wage does not cause either small businesses or giants like McDonald's to rush out and slash their workforce in order to offset the relatively small cost of paying employees a bit better. To the contrary, most studies show that overall job numbers go up. Moreover, pay hikes boost both employee morale and productivity, while reducing the number of workers quitting (thus saving employers big bucks on recruiting and training replacements).

[muff528 3]

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A study last year by Chicago's Federal Reserve Bank found that every dollar increase in the minimum wage produces an immediate bump in the next year of $2,800 per recipient in consumer purchases of everything from kids' shoes to vehicles. The Economic Policy Institute (EPI) reported in a 2009 study that even a boost to $9.50-an-hour would result in $30 billion a year in new consumer spending.

Interesting stat. Did they break down how much of that additional spending is real economic growth vs how much is only covering the resultant increase in costs of those items? IOW - did they quantify the increase in actual "buying power"?

[SkydiveJonathan 0]

The public is overwhelmingly behind the increase. This June, a Zogby Analytics survey of likely voters found seven out of 10 supporting a raise above $10 an hour (including 54 percent of Republicans). Notably, 71 percent of young people (18-23 years old) favored it. Likewise, last November's "American Values Survey" by the Public Religion Research Institute shows two-thirds of Americans in favor of a $10-per-hour minimum.

[muff528 3]

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The public is overwhelmingly behind the increase. This June, a Zogby Analytics survey of likely voters found seven out of 10 supporting a raise above $10 an hour (including 54 percent of Republicans). Notably, 71 percent of young people (18-23 years old) favored it. Likewise, last November's "American Values Survey" by the Public Religion Research Institute shows two-thirds of Americans in favor of a $10-per-hour minimum.

I'll take that as a "no".

[rhaig 0]

3 times on this page you replied to a direct question with drivel and doublespeak.

Are you a politician? you sound like a professional.

--
Rob