Two more who have no idea what an intern is. Amazing.
Not really relevant.
"a student or trainee who works, sometimes without pay, at a trade or occupation in order to gain work experience."
But all low-wage jobs are in effect trainee jobs. 75% of McDonald store managers ($45K to $57K), started off as entry level jobs.
When I worked at Advance Auto Parts store, my manager started off as I did working minimum wage. Today he's a store manager. $50K plus profit sharing bonus.
The CEO of Walmart started off unloading trucks at a Walmart warehouse as a seasonal job.
All entry level jobs are in fact intern jobs, whether they are claimed to be or otherwise.
. The problem became prevalent when structural pay systems were thrown out the window in this nation, and we began seeing people in jobs after years making just slightly above what they made when they were hired. And if that wasn't bad enough, they were being replaced with cheap labor from Mexico in which the government was then having to subsidize their pay with food stamps or welfare so they could survive. The rich employers who are guilty of these tactics are no better than the southern plantation owners who used slaves back in the 1800's if you ask me.
Two difference answers to that.
First off, I'm always bugged by this idea that you should earn more money because you existed for year. If you are working the same job for 10 years, and you are earning exactly the same amount of money you did ten years ago...... so what? You are doing the exact same job. Why would you earn more, just because you did it another year?
If I mow your lawn for $30 per mow last year, will you pay me $50 this year... because it's... this year?
Not every job goes UP in value. Some jobs go down in value. Remember when you paid $120 for a pager in the 1990s? Today you can buy a smart phone for $70? If you were a worker, working at the pager plant... you think you are getting a raise, when everyone doesn't want pagers anymore, and prices for pagers are falling? You can buy a new pager for $40 today.
Point being, the value of your labor, doesn't automatically go up every year. Sometimes it does. If you make a car at the car plant, that every year is selling for a higher price... then yes your labor has more value, and oddly people in those positions tend to make more year over year.
But the rest do not. Your labor is not automatically more valuable, just because you sucked air. You have to increase the value of your labor... generally by learning how to do something, that is in fact more valuable than what you were doing.
In high skill jobs, you are right.... as more immigrants with skills, come and take jobs, then basic economics "supply and demand" the supply of high skill labor means the wage is going to fall.
Right?
But here's the problem.... Wages were going to fall anyway..... even without immigrants, wages were going to fall.
Government has drastically subsidized education. More people than every have high-skills. If you want more Americans with degrees.... then you want wages to fall.
Whether the supply of high-skilled labor increases from immigrants, or from domestics.... either way.... wages were going to fall.
130 Million working age people, do not have degrees. The last year we have a good account of how many people came here and became naturalized citizens, it was 1 million.
If we cut immigration to zero, and the number of Americans with degrees by just 1%, that will lower wages, more than what we have today.
The 'structured' pay system never existed. Wages were always going to fall, as long as there was more labor.
You want to drive up wages again? Draft everyone into the military, like world war 2, and wages will go up, and unemployment will go down.
Bring everyone back home, and give them GI Benefits paid for education, and student loans, and pell grants, and wages are going to fall, with, or without immigration.
Kidding me right... So you think the economy is somehow stagnant with no hope of improvement ever ? If the government changes taxes by raising them or changes the lending rates etc. Then what do you think the effects of that move does all across the board ? Nothing is stagnant in life ever, and wages should never be stagnant unless someone is crooking their employee's, and yes the yard man too. I mean if you want your grass cut, and the economy changes on your grass cutter, then you and him will have to adjust to keep pace, and if you are rich, then it is up to you to appreciate the job and loyalty your worker gives to you, and if not then you should find yourself looking for an idiot then, and hopefully your hedges end up looking like a drunk Edward Scissorhands cut them
Taxes will have an effect. Lowering taxes, will inherently increase the economy. If everyone has just $10 more dollars to spend, they are going to do something with that $10. That will boost the economy. Of course, a small tax cut, will have a small boost. A large tax cut will have a larger boost. Equally a tax hike will harm the economy. Small hike, small harm. Large hike, large harm.
As for lending rates.... No, not so much. The big banks want you, and need you to believe that they are the gate keepers of the economy. Think about it... if you didn't believe the banks held the keys to economic growth, why would anyone, anywhere, believe in "too big to fail", the theory that these banks are so large, we can't allow them to fail, or they'll wipe out the economy... Who would believe that?
No one. And numerous countries have allowed their major banks to fail, declare bankruptcy, and been wiped out... and their economies recovered, and honestly, much faster than our economy. Iceland did this. Estonia did this. England in the distant past, did this.
Banks are not the guardians of the economy. So when you ask what effect changing lending rates has... not much is my answer. A business that is growing and successful, will be able to borrow and grow, whether the lending rate is high or low. Equally, a business that is not growing, and not successful, will not be able to borrow whether rates are high or low.
Borrowing money at 2% or 20% interest, doesn't change how profitable your business is. If anything, borrowing money regardless of interest rate, causes it to be harder to make a profit, because now you have added debt service overhead costs.
As to the mowing the grass....
If you really are going to pay someone a much higher price to mow your grass, for no other reason than because he existed an entire year.... Then I'd like to offer you my grass mowing service. I expect $50 a mow by next year (assuming you have an average lot size).
I can tell you that when my Condo Association was given a 25% increase in mowing costs, we found a cheaper contractor. Most people would. In fact, dare I say, EVERYONE would.
When my parents called for a house sitter to take care of their dogs while on vacation, they were quoted a much higher price. So they found a teenager in their church, who did it for a fraction of that price.
Which was a boon for her, she had an entire house to herself, being paid to live rent free, in a house right next to where she was going to school over the summer.
After the minimum wage went up, I no longer go out to eat during the week. The cost is too high. So I found a cheaper alternative.
The value of the labor, doesn't change magically, because 12 months went past. It never has. I realize in times gone past, people saw pay raises that happened because of monetary inflation. Inflation means the money is devalued, and thus you are getting a pay raise, that reflects the fact the money is worth less than it was before.
But it's not really a pay raise is it? If a car costs $5,000, and you are paid $5/hr, and now a car costs $10,000 from inflation, and you are paid $10/hr.... did you really get a raise? No.
Inflation in recent years has been virtually non-existent. As a result, raises have been almost non-existent.
Nothing has really changed that much. You were not paid more in decades past, simply because you sucked air. And you are not paid more for sucking air today either.