Economy The Downside Of Minimum Wage

[Smokes]

Seen this article this morning and thought y'all might like it.

https://www.commonwealthfoundation.org/policyblog/detail/downsides-of-the-minimum-wage

Cliffs. Min wage forces small businesses to pay more than they can afford.

No one wants to force small businesses to lay off employees or close their doors, but experience shows that’s exactly what happens when government sets wages.

Also has idea on things to do other than force a min on employers.

• Tear down barriers to new careers. Over 250 Pennsylvania professions require a license to work, many of them low- and mid-income jobs. Unfortunately, occupational licensing requirements create barriers to employment. The state should ease the process for more workers to transition to new or temporary jobs by eliminating unnecessary occupational licensing or decreasing requirement burdens. Evaluating opportunities to ease some of these licensing restrictions, for which Wolf has voiced support, will help more Pennsylvanians find jobs.
• Liability protection. Protect small business from lawsuits by passing liability protection.
• Streamline regulations to save small businesses. Pennsylvania has almost 163,000 individual regulations, making it the state with the 11th-highest number of total restrictions, according to the Mercatus Center database. These regulations place a disproportionate burden on small businesses. Specifically, lawmakers can streamline the ability to repeal existing regulations, track the status of unapproved permits, and require legislative approval for regulations that will cost more than $1 million a year.

But wouldn't the economy be better off with a minimum wage?

 

[Seano]

No. Just giving everyone more money just leads to inflation. Then those who didn't get that bullshit pay raise are knocked down a class and have to pay more for everything.

I mean, it can't stay in one place forever but giant steps will hurt the economy.

 

[Kandyland]

They need to pay McDonalds workers more so they stop fucking up my orders everytime.

 

[Jack V Savage]

Good piece on the MW here:

https://noahpinion.substack.com/p/why-15-minimum-wage-is-pretty-safe

 

[3rd Round Romero]

I always thought it was crazy that as Americans we can't even discuss the prospect of having no federal minimum wage without someone acting like you just called for slavery to make a comeback.

 

[Jack V Savage]

I always thought it was crazy that as Americans we can't even discuss the prospect of having no federal minimum wage without someone acting like you just called for slavery to make a comeback.

I think if you let the air out of this, what you're saying is that if you discuss a policy change, people who oppose that change will point out the bad effects that they'd expect from it. Doesn't seem so crazy when you put it that way.

 

[Horse Style]

An interesting question way to look at the minimum wage argument.

If minimum wage = $X/hr, does that mean you think every single job out there, no matter how small, brings in at least $X/hr to the company?

 

[3rd Round Romero]

I think if you let the air out of this, what you're saying is that if you discuss a policy change, people who oppose that change will point out the bad effects that they'd expect from it. Doesn't seem so crazy when you put it that way.

But they don't do that though, if they made sound arguments against it then that would be fine. Instead they look shocked and act like im crazy.

 

[tonni]

There are no small businesses in countries with minimum wages, true.

 

[Jack V Savage]

But they don't do that though, if they made sound arguments against it then that would be fine. Instead they look shocked and act like im crazy.

Well, like see the link I cited in Post 4. That has actual arguments, and that's the kind of discussion you often see. But, yeah, on both sides in message boards, you also get a lot of "fuck you, no fuck *you"-type exchanges. That's on every issue.

 

[Trotsky]

An interesting question way to look at the minimum wage argument.

If minimum wage = $X/hr, does that mean you think every single job out there, no matter how small, brings in at least $X/hr to the company?

If by "interesting," you mean "idiotic" or "pointless," then yes. Very interesting.

I always thought it was crazy that as Americans we can't even discuss the prospect of having no federal minimum wage without someone acting like you just called for slavery to make a comeback.

I don't think that's the case. I've had the discussion often, as I think there's a good argument to be made that the best economic setup is universal income guarantees from the government and complete elimination of wage floors so that employers have to compete for employees who have the ability to be mobile without risking destitution.

The problem is that many or most persons who oppose the minimum wage don't present a decent argument or provide a plausible set of policies where anything other than massive increases in poverty would result. Their argument is usually either dogmatic, reduction, or resentful of working class employees.

 

[AWilder]

I've never worked a min-wage job so i was curious what percentage actually earns min wage. And it's pretty low at 2.3%. But my search also showed the percentage of workers making less than $15/hr and it's around 28% of the workforce, which was surprising to me.

I have to roll my eyes at the argument that a higher min wage will hurt businesses and reduce jobs. If the business model relies on poverty wages to succeed it's simply not a good business model, the price of the goods are too cheap, the business has failed to realize the value of it's employees, or government is subsidizing those workers with other safety net services, the old Walmart worker on food stamps story.

 

[MichiganMMA1978]

If by "interesting," you mean "idiotic" or "pointless," then yes. Very interesting

What part of that is false?
If an employee is paid $15/hr. The employer is most likely actually paying around $25/hr for them to be there. Do you think everyone would cover their own cost?

 

[Ophydian]

They need to pay McDonalds workers more so they stop fucking up my orders everytime.

Unfortunately more money doesn’t fix lazy.

 

[3rd Round Romero]

If by "interesting," you mean "idiotic" or "pointless," then yes. Very interesting.



I don't think that's the case. I've had the discussion often, as I think there's a good argument to be made that the best economic setup is universal income guarantees from the government and complete elimination of wage floors so that employers have to compete for employees who have the ability to be mobile without risking destitution.

The problem is that many or most persons who oppose the minimum wage don't present a decent argument or provide a plausible set of policies where anything other than massive increases in poverty would result. Their argument is usually either dogmatic, reduction, or resentful of working class employees.

I'm more referring to college age people, who aren't very tolerant of other ideas as of late

 

[Limeade]

You have to use both together. Minimum wage and Earned Income Tax Credit (EITC) which is a much more targeted way to help the working poor than a blanket minimum wage increase.

Although how to pay for it is a tougher issue.

 

[Trotsky]

What part of that is false?

Huh? I'm saying it's idiotic and pointless because nobody thinks that (that, if a minimum wage exists, then automatically every position in the economy tangibly generates profits in excess of that wage) and the perspective doesn't present any new information or considerations. If labor costs exceed revenue, the business fails.

I'm more referring to college age people, who aren't very tolerant of other ideas as of late

I definitely don't think that college-aged people are less tolerant of ideas than persons who are middle aged or older. Quite the opposite, in fact.

 

[Rocco Siffredi]

Seen this article this morning and thought y'all might like it.

https://www.commonwealthfoundation.org/policyblog/detail/downsides-of-the-minimum-wage

Cliffs. Min wage forces small businesses to pay more than they can afford.



Also has idea on things to do other than force a min on employers.



But wouldn't the economy be better off with a minimum wage?

the minimum wage was birthed from racism, couldn't have them blacks undercutting whites to get jobs...had to make that min wage a wage that white people would take... no wonder leftists love it

 

[gspieler]

If by "interesting," you mean "idiotic" or "pointless," then yes. Very interesting.



I don't think that's the case. I've had the discussion often, as I think there's a good argument to be made that the best economic setup is universal income guarantees from the government and complete elimination of wage floors so that employers have to compete for employees who have the ability to be mobile without risking destitution.

The problem is that many or most persons who oppose the minimum wage don't present a decent argument or provide a plausible set of policies where anything other than massive increases in poverty would result. Their argument is usually either dogmatic, reduction, or resentful of working class employees.

Working class employees are often among the most vocal opponents of large increases in the min wage.

 

[Gym Shark]

Kroger owns most of the largest grocery retailers in America, the raise in minimum wage has convinced them to go to self checkout only