Minimum Wage, Maximum Stupidity

[Kevin_Kennedy]

In a free market, demand is always a function of price: the higher the price, the lower the demand. What may surprise most politicians is that these rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor. When the cost of hiring low-skilled workers moves higher, jobs are lost. Despite this, minimum wage hikes, like the one set to take effect later this month, are always seen as an act of governmental benevolence. Nothing could be further from the truth.

When confronted with a clogged drain, most of us will call several plumbers and hire the one who quotes us the lowest price. If all the quotes are too high, most of us will grab some Drano and a wrench, and have at it. Labor markets work the same way. Before bringing on another worker, an employer must be convinced that the added productivity will exceed the added cost (this includes not just wages, but all payroll taxes and other benefits.) So if an unskilled worker is capable of delivering only $6 per hour of increased productivity, such an individual is legally unemployable with a minimum wage of $7.25 per hour.

Minimum Wage, Maximum Stupidity by Peter Schiff

 

[KittenKoder]

Another odd effect of raising the minimum wage that most people ignore, the companies have to increase their prices by the same percentage to cover it ... thus completely negating the effect of increasing the minimum wage in the first place.

 

[Kevin_Kennedy]

Another odd effect of raising the minimum wage that most people ignore, the companies have to increase their prices by the same percentage to cover it ... thus completely negating the effect of increasing the minimum wage in the first place.

In some cases they'll raise prices and in others they'll let people go or won't hire people in the first place.

 

[KittenKoder]

Another odd effect of raising the minimum wage that most people ignore, the companies have to increase their prices by the same percentage to cover it ... thus completely negating the effect of increasing the minimum wage in the first place.

In some cases they'll raise prices and in others they'll let people go or won't hire people in the first place.

True ... it's always baffled me that people don't realize how stupid minimum wage was in the first place. Every time it gets raised I just pay attention to the fact that I will have to start paying more for everything, my budget never changes, I still can only afford what I did before the wage hike ... at least when I was working at an hourly wage job.

 

[AllieBaba]

I think people do realize it, it's just too simple to miss. But they either egotistically believe they've found a way around basic economic principles, or they have a motive other than maintaining a functioning economy.

 

[Kevin_Kennedy]

For those who can't seem to grasp it I simply ask them why we don't make the minimum wage $100/hour because the same principle applies.

 

[AllieBaba]

I saw an old friend today who has 2 restaurants in Washington. Thanks to increased taxes, she is selling one of them (after shutting it down and firing the employees) and when min wage increases, she's paring down the number of employees at the remaining, smaller business.

 

[KittenKoder]

I saw an old friend today who has 2 restaurants in Washington. Thanks to increased taxes, she is selling one of them (after shutting it down and firing the employees) and when min wage increases, she's paring down the number of employees at the remaining, smaller business.

Another example of government regulation killing small business and supporting a few major corporations only.

 

[editec]

I saw an old friend today who has 2 restaurants in Washington. Thanks to increased taxes, she is selling one of them (after shutting it down and firing the employees) and when min wage increases, she's paring down the number of employees at the remaining, smaller business.

Another example of government regulation killing small business and supporting a few major corporations only.

Yes, everyone can plainly see how small businesses all went broke since minimum wage was enacted.

 

[Full-Auto]

I saw an old friend today who has 2 restaurants in Washington. Thanks to increased taxes, she is selling one of them (after shutting it down and firing the employees) and when min wage increases, she's paring down the number of employees at the remaining, smaller business.

Another example of government regulation killing small business and supporting a few major corporations only.

Yes, everyone can plainly see how small businesses all went broke since minimum wage was enacted.

No they didnt all go broke. But in the state being referred too. For a couple of years they doubled the small business failure rate of the nation. All due only to dem policy.

 

[editec]

For a couple of years they doubled the small business failure rate of the nation. All due only to dem policy.

Can you prove that statistically, I wonder?

Be sure to link those stats directly to the specific Demcoratic policies you believe caused this event, too, please.

 

[Full-Auto]

For a couple of years they doubled the small business failure rate of the nation. All due only to dem policy.

Can you prove that statistically, I wonder?

Be sure to link those stats directly to the specific Demcoratic policies you believe caused this event, too, please.

google it. it has been claimed by politicians here for a couple of elections with democrats not disputing.

The lack of disagreement sold it for me. The dems saying they would work on the B@O tax reinforces the legitimacy again.

But the dem policies cost more then just this and the increased prices. There policies have added 200k to the cost of a home in the Seattle area. That was proven by a study done at the UW. Something else easily confirmed.

 

[Shogun]

Yes, Kevin.. CLEARLY America should dump a minimum wage so that employers can pay as low a wage as beggars in fucking calcutta get. Clearly. I mean, LABOR is the favorite thing American loves paying for anyway! Hell, nothing says "GOOD FOR THE FUCKING NATION" quite like gutting the lifeline of the lowest classes! good grief.

I wish that capitalistas who love beggar societies that grease their bullshit economic theories would go ahead and move to a mexican barrio. I mean, you might just change your fucking tune is you lived the kind of lifestyle you enable.

 

[Midnight Marauder]

Another odd effect of raising the minimum wage that most people ignore, the companies have to increase their prices by the same percentage to cover it ... thus completely negating the effect of increasing the minimum wage in the first place.

There's many options besides price increases -- reduced portion sizes in restaurants, bigger "void" in the bottom of bottles to reduce the volume while keeping the container size the same, holding up on raises and replacement hires, there's a myriad of things businesses do, hidden inflation is what it amounts to.

 

[RodISHI]

Sears Auto Centers, 6.50 plus a bullshit .25 cent commission per tire change equals 8.00 an hour minimum wage for someone who can cost ya a couple hundred or more if they screw up you new digital valve stem.... love it. Those mechanics are making way to much money....

 

[Shogun]

yea.. if only there were some beggars strait from the dirty streets of calcutta who would work like a fucking fiend for two eggs and a biscuit...




I invite any of you who just can't gel with the minimum cost of AMERICAN labor to go ahead and move to India where the labor pool is cheaper than your general securty. good riddance.

 

[Kevin_Kennedy]

Yes, Kevin.. CLEARLY America should dump a minimum wage so that employers can pay as low a wage as beggars in fucking calcutta get. Clearly. I mean, LABOR is the favorite thing American loves paying for anyway! Hell, nothing says "GOOD FOR THE FUCKING NATION" quite like gutting the lifeline of the lowest classes! good grief.

I wish that capitalistas who love beggar societies that grease their bullshit economic theories would go ahead and move to a mexican barrio. I mean, you might just change your fucking tune is you lived the kind of lifestyle you enable.

You're ignoring the fact that some people and some jobs aren't worth the minimum wage so employers may not hire or may fire people that aren't producing enough to warrant paying them so much. You're also ignoring how the Unions support the minimum wage because it means that their Union workers won't face competition from less-skilled but also less-costly competition.

 

[Shogun]

Yes, Kevin.. CLEARLY America should dump a minimum wage so that employers can pay as low a wage as beggars in fucking calcutta get. Clearly. I mean, LABOR is the favorite thing American loves paying for anyway! Hell, nothing says "GOOD FOR THE FUCKING NATION" quite like gutting the lifeline of the lowest classes! good grief.

I wish that capitalistas who love beggar societies that grease their bullshit economic theories would go ahead and move to a mexican barrio. I mean, you might just change your fucking tune is you lived the kind of lifestyle you enable.

You're ignoring the fact that some people and some jobs aren't worth the minimum wage so employers may not hire or may fire people that aren't producing enough to warrant paying them so much. You're also ignoring how the Unions support the minimum wage because it means that their Union workers won't face competition from less-skilled but also less-costly competition.

oh yes. lets cry about unions now. The very reason American labor WAS as solid as it once was sure is the reason businesses can't compete with labor in third world india. sure, dude.


Again, tell me who can consume more, thereby causes MORE need, a minimum wage emplyee or someone making what YOU want to devalue their wage to. If you think normalizing the American standard of living to that of a fucking beggar in calcutta is the way to go then so be it. I highly disagree. I don't really care if you think fast food is not worth minimum wage. I don't think rediculous CEO salaries or worth it. So what you say? indeed.

 

[Kevin_Kennedy]

Yes, Kevin.. CLEARLY America should dump a minimum wage so that employers can pay as low a wage as beggars in fucking calcutta get. Clearly. I mean, LABOR is the favorite thing American loves paying for anyway! Hell, nothing says "GOOD FOR THE FUCKING NATION" quite like gutting the lifeline of the lowest classes! good grief.

I wish that capitalistas who love beggar societies that grease their bullshit economic theories would go ahead and move to a mexican barrio. I mean, you might just change your fucking tune is you lived the kind of lifestyle you enable.

You're ignoring the fact that some people and some jobs aren't worth the minimum wage so employers may not hire or may fire people that aren't producing enough to warrant paying them so much. You're also ignoring how the Unions support the minimum wage because it means that their Union workers won't face competition from less-skilled but also less-costly competition.

oh yes. lets cry about unions now. The very reason American labor WAS as solid as it once was sure is the reason businesses can't compete with labor in third world india. sure, dude.


Again, tell me who can consume more, thereby causes MORE need, a minimum wage emplyee or someone making what YOU want to devalue their wage to. If you think normalizing the American standard of living to that of a fucking beggar in calcutta is the way to go then so be it. I highly disagree. I don't really care if you think fast food is not worth minimum wage. I don't think rediculous CEO salaries or worth it. So what you say? indeed.

Well how about you tell me who can consume more. Someone making less than minimum wage under the table or somebody who lost their job because they weren't worth the minimum wage?

If the minimum wage is such a great thing why don't we increase it to $100/hour? That should stimulate the economy, right?

 

[basquebromance]