Minimum wage

Discussion in 'Economy' started by Supposn, Jul 21, 2011.

  1. Supposn
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    Supposn Senior Member

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    Decreasing or eliminating the federal minimum wage will generally decrease ALL labor compensations’ purchasing powers more than otherwise.

    The proportional extent of minimum rate’s affect is inversely related to the wages’ amounts thus the lowest earners will be the most severely affected.

    The additional jobs induced by eliminating the minimum wage do not now exist because those tasks are not now worthy of the minimum wage’s purchasing power.


    The numbers of qualified employed and unemployed potential employees, (i.e. the labor pool) now exceeds the number of filled and unfilled jobs. Because there’s a minimum wage, employers refrain from filling such lower paying jobs with lesser qualified people (unless filling the position becomes necessary). Hiring less qualified or motivated workers, (ever at lesser pay rates) is usually a very expensive mistake.


    Because there’s a minimum wage, people refrain as best they can from accepting lower wage employment. That’s why so few jobs are actually now offered at the absolute legal minimum rate. There are some real expenses and penalties attached to any job. The commuting costs of an individual and many other expenses will remain similar regardless of that employee’s pay scale.


    It’s generally agreed that the elimination of the minimum wage will increase the number of lowest wage jobs that are worthy of the labor market’s pay scales, (which will then become severely reduced). The elimination of the minimum wage does create a larger pool of employable labor due to the decreased purchasing power of the lowest wage jobs. With no minimum child labor is financially justified.


    The “ripple effect” due to decreasing or eliminating the minimum rate is decreasing ALL labor compensations’ but particularly lower wage earners’ purchasing powers, inducing greater school drop-outs, and increasing those needing public assistance.


    I’m a proponent of increasing the federal minimum rate and there after annually cost of living adjusting that rate.


    Respectfully, Supposn
     
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  2. Two Thumbs
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    Two Thumbs Gold Member

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    Forced minimum is nothing short of tyranny.

    And it's a failed idea.

    It was meant to allow people to afford a shitty car and place to live. With each increase the cost of a shitty car and place to live went up in cost.

    It's gotten to the point we are no longer competative on an international scale.
     
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  3. rightwinger
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    rightwinger Paid Messageboard Poster Supporting Member

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    Minimum wage doesn't buy shit now

    Back in the early 70s I worked minimum wage at $2.10 an hour

    I could afford to pay for college, buy a car and get myself started in life. You can't do shit on min wage now
     
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  4. Mr Clean
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    Mr Clean Gold Member

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    Yes, by all means what America needs now is even cheaper labor to compete with the Chinese.

    "Prosperity Through lower Wages!"
     
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  5. imbalance
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    imbalance Senior Member

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    Minimum wage can serve its intended purpose only in a closed protectionist economy.
     
  6. Itsthejobsstupi
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    Itsthejobsstupi Rookie

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    Here's a fact for your useless information file: Ronald Reagan is the only US president in modern times not to have raised the minimum wage. It stayed at $3.35 throughout his eight year presidency. He did however manage to decrease the top marginal tax rate to 28%. We've been paying for it ever since.
     
  7. expat_panama
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    expat_panama Senior Member

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    Many people believe that because it's reasonable, and these same poeple don't bother to actually look to see if it happens in real life. The conflict between conventional wisdom and observable fact brings to mind ancient Greece where scientific observation was ridiculed and replaced with official logic structures.

    If anyone here's interested we could go and take a look at the actual records available for historical minimum wages and compare them to labor compensation. The thing is that blanket statements about economics tend to go over better when they agree with fact.
     
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  8. Supposn
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    Supposn Senior Member

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    Expat Panama, by truncating my sentence you changed the sentences meaning. Similar to quoting out of context, you have misquoted me.
    The sentence as posted was “Decreasing or eliminating the federal minimum wage will generally decrease ALL labor compensations’ purchasing powers more than otherwise”.

    It is a valid statement. I’m sure you can find others who disagree. Despite our space program you can find others who believe the earth is flat.

    I can’t conceive how you can prove or disprove my statement since it is very much dependent upon interpretation.
    An economy is similar to a complex environment of many different living creatures. Causes and effects are not always empirical determinations. If you want to try, knock yourself out.

    Respectfully, Supposn
     
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  9. Rozman
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    Rozman Gold Member Supporting Member

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    Yeh,why in the world would we want to have been allowed to keep more of the money we earned?
     
    Last edited: Jul 21, 2011
  10. uscitizen
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    uscitizen Senior Member

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    Yepper lower wages will make people buy more and will jump start our consumer spending driven economy.
     
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