asterism
Congress != Progress
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- #81
If a living wage is the minimum, what happens to the low-skill low-value jobs millions of people do part time for extra money?
As an example, lawn service here in Central FL is pretty expensive compared to when I was a teenager here (I mowed 5 lawns from age 11 to 15). The only options are landscaping companies or doing it yourself. There aren't any kids that do it for extra money anymore due to various issues. No more $10 lawn jobs. Some think this is a good thing because it keeps the kids from being exploited. However, there aren't the same opportunities for young kids to learn how to work for others. I fondly remember having a savings account that built up (slowly) and the pride I felt watching it grow. I enjoyed the luxury of sometimes being able to buy something that my parents thought was too expensive or frivolous.
That opportunity doesn't exist for my kids and won't until they are 16, and people around here that would hire kids either have less manicured lawns or they just do the work themselves. There is not any economic benefit to anyone.
There is another issue with the increase in the minimum wage, FICA, and Medicare. When I was a teen the minimum wage was $3.35, for a total marginal cost to an employer of $3.59 per hour. Now the minimum wage is $7.25 and the total marginal cost is $7.80, or $3.79 in 1985 dollars. It doesn't seem significant, but that's 5% more. Teens generally work in low margin businesses, so 5% is significant. Entry level part-time jobs for teenagers are much harder to find now than they were 30 years ago.
As an example, lawn service here in Central FL is pretty expensive compared to when I was a teenager here (I mowed 5 lawns from age 11 to 15). The only options are landscaping companies or doing it yourself. There aren't any kids that do it for extra money anymore due to various issues. No more $10 lawn jobs. Some think this is a good thing because it keeps the kids from being exploited. However, there aren't the same opportunities for young kids to learn how to work for others. I fondly remember having a savings account that built up (slowly) and the pride I felt watching it grow. I enjoyed the luxury of sometimes being able to buy something that my parents thought was too expensive or frivolous.
That opportunity doesn't exist for my kids and won't until they are 16, and people around here that would hire kids either have less manicured lawns or they just do the work themselves. There is not any economic benefit to anyone.
There is another issue with the increase in the minimum wage, FICA, and Medicare. When I was a teen the minimum wage was $3.35, for a total marginal cost to an employer of $3.59 per hour. Now the minimum wage is $7.25 and the total marginal cost is $7.80, or $3.79 in 1985 dollars. It doesn't seem significant, but that's 5% more. Teens generally work in low margin businesses, so 5% is significant. Entry level part-time jobs for teenagers are much harder to find now than they were 30 years ago.