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I Believe The Minimum Wage Should Be Increased

Y'all will be glad to know that the dire predictions of massive job loss after enacting the $15 minimum wage, are diametrically wrong:

http://ritholtz.com/2016/12/seattle-min-wage-update/

Instead, a new low in unemployment in Seattle (data courtesy Ritholtz Wealth Management)

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meJess · F

I'm confused, if you pay people who work in shops and stuff more, doesn't that just mean prices go up so they can be paid? So the new minimum wage only buys the same amount of stuff as the old one.

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Ynotisay · M

@meJess: But with more money comes more purchasing power. Our system is driven by supply and demand. That's why the stats show that an increase in minimum wage actually benefits the economy across the board.

meJess · F

@Ynotisay: I still don't get it, if everyone earns more then the cost of things goes up to pay their wages and 10 buys what 5 used to, so no change.

Ynotisay · M

@meJess: But you're assuming the price of everything goes up to pay for the increased wages. That's where supply and demand comes in. The stats show that historically that's not the case. The food industry is often the only one that will sometimes show nominally raised prices but that's dependent on the state they're operating in. "Tipped" employees are usually under different tax guidelines. And wages are only one line item for a business. Here's an example. Stats show that a higher minimum wage reduces employee turnover and increased productivity. And because of that the company saves in hiring, training and employee costs. It's all interconnected.

But at the end of the day, prices keep rising and the minimum wage doesn't. Our current federal minimum wage is $7.25. It would have to be over 11 bucks an hour to match the purchasing power, adjusted for inflation, of the 1960's. It's also important to remember that what 11 bucks buys in the South is very different than what 11 bucks buys in California. I think it's important to take a look at which major companies are fighting against an increase and ask why. It's impossible to predict the future but we can look at the past. And the past shows that a minimum wage increase is an economy driver.

ChefBrian · 41-45, M

I think 15/hr is a LOT for a minimum Wage Job. I think it should be raised.. But 15/hr is overkill.

Here in NJ, it's currently 8.44. So you are almost doubling it.
The real problem I see with raising to 15.. Is the people who started making 8.. And nearly doubled their salary through hard work, increases, and promotions, now are making the same money as people just waking off the street for an entry level job.

Would you then have to Jack up the rates of those seasoned employees? Of the management team?
How quickly will small companies bankrupt if forced to do this?
I would imagine very quickly.

I don't think it makes sense, to pay entry level workers 15/hr.
I do believe the cost of goods will rise as a result.. Groceries, gas tax... Anything else they can figure out to raise.
What's wrong with paying 10/hr.. ND having them work hard to move up.

Minimum wage jobs aren't supposed to be forever jobs. I had one all throughout high school. By the time I was out of College, I held a small management position.. The goals are to work hard.. And get ahead.
Not to stay stagnant, and get paid more to do less.

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ChefBrian · 41-45, M

So the middle class would further continue to pay more and more for goods.
Not sure about you..
I make a decent living. But we have Student Loan debt.. A mortgage and all the costs that come with a house.. A need for reliable cars to get me and my wife to work.

Incurring more costs on the heels of upping minimum wage by 80% doesn't seem practical to me.

firefall · 61-69, M

@ChefBrian: if you're that committed to not reading the data, and just airing your prejudices, I see no further point in discussion with you.

ChefBrian · 41-45, M

I'm saying I read the Data..
But you can't take a small sample size and think the same will happen OK n a Large scale.
These are predictions based on a very small percentage.

Ynotisay · M

And that's only one example. History shows us the positive impact of min. wage increases. But then again, at the time of our greatest economic growth the very wealthy were paying around 90% in personal income tax.
So it stands to reason that we continue to do the exact opposite of what works for the vast majority of Americans.
Because America. And Because Freedom.

Goralski · 56-60, M

90 percent before deductions lets not forget

Ynotisay · M

@Goralski: Different than today, huh? Come on man.
You must make SERIOUS money, huh? The greatest wealth disparity ever must be a good thing for you. You sure better not be making less than $1M a year dude. Otherwise you're just kissing the hand that beats you.

Makemeluvit · 36-40, F

Seattle is not a great sample demographic regardless- I love Seattle but it's not at all representative of a majority of the country's economy

firefall · 61-69, M

Not claiming it is - this is simple a piece of evidence (yet another) that increasing minimum wages has little effect on employment, contra the ridiculous and extravagant claims that were made quite specifically about the Seattle $15 minimum wage bump

Peaches · F

I've never been to Seattle since I moved here to Oregon from NC. Well I'm glad to know they were wrong.

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