Where are the truth tellers?

Discussion in 'Economy' started by onecut39, Jul 24, 2012.

  1. onecut39
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    onecut39 VIP Member

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  2. DSGE
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    DSGE VIP Member

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    Who cares? Wages aren't, and shouldn't, be determined by capacity to pay. They're determined by productivity and the competitiveness of the labour market.
     
  3. Widdekind
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    Widdekind Member

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    Above the (Federal) minimum wage, market forces determine wages. Wages are the "price" of labor, reflecting the ratio of demand for, to supply of, workers. Above Government-enforced minimum wages, businesses are paying people what they are (economically, not socially) worth. One business, on the west coast, paying under $10 per hour, does not depress the wages, of somebody on the east coast, earning $20 per hour. Low-pay, low-skill jobs are a different sector of the labor market, than high-pay, high-skill jobs. They are not directly related.

    To boost wages, reflecting the ratio of demand for, to supply of, workers; workers would need businesses to want more workers. Eliminating minimum wage laws, that criminalize, outlaw, ban, and prohibit millions of low-pay jobs, would re-legalize those millions of jobs. Businesses would want millions more workers. Business demand for labor would increase. The millions of new hires would not compete for other people's jobs. Re-legalizing low-pay jobs, at low-pay businesses, would increase demand for workers, and (tend to) pump up wages for everybody else.
     
  4. Rshermr
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    Rshermr VIP Member

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    There you go again, pushing tha tea party dogma. Got proof???

    Per the Economic Policy Institute, the top 1% of income earners received 59.9% of income growth from 1979 through 3007, while the lower 90% received 8.6%. And it just keeps getting worse, based on the great reaganomics economy. So, where is that trickle down???

    http://www.epi.org/publication/bp331-occupy-wall-street/

    We have a problem here, and cons choose to ignore it. Economies who have had this type of economy have always come down, and hard. Study it a bit, and you will understand. But only if your mind is open.
     
    Last edited: Jul 25, 2012
  5. onecut39
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    onecut39 VIP Member

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    Wages have nothing to do with "what an employee is worth" or "supply and demand". Those days are gone, perhaps forever or at least until a new labor movement is formed.

    Wages, especially those for the low paid represent what the market will bear. In other words the lowest price for which an employer can secure workers.

    For the last 30 years we have seen the top ten percent's worth and wages spiral upward while the lower and middle class decline. It is not a case of not having money to pay, itis increasingly who that money is being paid to.

    AS I have siad before the class war is over and done. The rich have won as they always will in a society with no compassion or morals. A society that values class more than labor.
     
  6. California Girl
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  7. onecut39
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    onecut39 VIP Member

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    Economics is full of truths. Politics is not.
     
  8. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Except they aren't.
     
  9. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    You really are out of your element if you post crapola like that.
     
  10. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    It's been a slow erosion of the power of labor. It began with companies offering the same benefits to employees that were not in Unions. They then slowly made use of contract employees and H1Bs..to loosen the market. That culminated with off shoring. At least in the IT industry..but I am sure this sort of thing traversed many sectors. That also came along with "Right to Work" laws and Bush's change in overtime rules.

    It was slow..but pretty devastating.

    Fortunately..remedies for this aren't all that complicated. A modest change in the tax code and H1Bs rules would fix a heck of a lot of problems. But look for a major political fight if any of that stuff is touched.
     

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