Minimum Wage would be $21.72/hr if it kept up with productivity: CEPR 2012 Study

[TGN]

http://blogs.seattletimes.com/jontalton/2014/01/17/vote-should-seattle-raise-the-minimum-wage/

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

 

[OnePercenter]

I think it's correct. The diaper clad baby boomers will disagree.

 

[TGN]

I even heard today that it should actually be around $28/hour, if it kept pace with growth since the 1960's.

 

[westwall]

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

I couldn't find a Seattle times link, please provide one if you can, but I did find the Think Progress screed on it.

Where The Minimum Wage Would Be If The Top One Percent Didn't Leave Workers Behind

 

[TGN]

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

I would've posted it, but couldn't. Take a close look at the number of my posts and you'll see why. I couldn't even post the hyperlink in your post. But I'll get around to it very soon.

 

[Darkwind]

?

When did people begin to believe that wages were based upon productivity?

 

[alan1]

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

In current dollars the minimum wage in 2002 was $5.15 an hour.
Is the wait staff at your favorite restaurant 4 times more productive than it was 10 years ago?
In other words, did waiters and waitresses in 2012 wait on 4 times as many customers as they did in 2002 and provide the same level of service in the same amount of time?
The answer to that question would be NO.

In some industries it is impossible to increase productivity at the same rate as inflation.

 

[rightwinger]

CEO pay has kept pace......and then some

 

[Rozman]

The responsibility of a CEO to keep a company profitable,to keep it competitive,to guide it
through a tough economy,to compete on a global scale...to be able to look ahead a few years and
to try to make sure that it will be viable....

It's an awesome responsibility.
Whatever their compensation it's well earned.

 

[Rozman]

All the talk that minimum wage should be around $25.00 is beyond insanity.

 

[alan1]

CEO pay has kept pace......and then some

Good point.
The CEO of WalMart used to work in a WalMart warehouse as a part time employee. 5 Things You Need to Know About Walmart's New CEO - ABC News snip,

McMillon began his career at Wal-Mart as a summer associate in a Walmart Distribution Center in 1984, loading and unloading trucks.

 

[Mr Natural]

The last thing America needs is a well paid workforce.

 

[Darkwind]

The last thing America needs is a well paid workforce.

In truth, the last thing America needs is to pay advanced degree wages to button pushers who cannot even make change without a machine.

 

[Mr Natural]

The last thing America needs is a well paid workforce.

In truth, the last thing America needs is to pay advanced degree wages to button pushers who cannot even make change without a machine.

Fifty thou a year is a far cry from advanced degree wages.

 

[GWV5903]

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

Yeah let's pay the minimum 40 hour a week worker at Jack In The Box $45,178 a year and then we can justify paying the garbage man (sorry sanitation worker) $90,355 a year, and then we can pay the Police Officer $180,710...

You get the point, your math is flawed, but you already knew that...

I think you should stand in front of Congress and the White House until you get this fixed...

 

[alan1]

The last thing America needs is a well paid workforce.

I asked wikipedia and this is what I got, List of countries by average wage - Wikipedia, the free encyclopedia
Wikipedia isn't the end all be all but it's usually pretty accurate.

 

[OnePercenter]

The responsibility of a CEO to keep a company profitable,to keep it competitive,to guide it
through a tough economy,to compete on a global scale...to be able to look ahead a few years and
to try to make sure that it will be viable....

It's an awesome responsibility.
Whatever their compensation it's well earned.

Wrong. The job of a CEO is to fluff stockholders and boards of directors, subordinates actually do the vast majority of the work. I've been a CEO twice, it's the easiest gig one could ask for.

You use the picture of a one percenter and you don't know that? SAD!

 

[OnePercenter]

All the talk that minimum wage should be around $25.00 is beyond insanity.

Minimum wage is the base for ALL wages so it's not INSANITY.

 

[OnePercenter]

SEATTLE TIMES

January 17, 2014 at 10:46 AM

Vote: Should Seattle raise the minimum wage?

Posted by Jon Talton


One of the most important issues facing the city this year will be the push to raise the minimum wage to $15 per hour. If the minimum wage had kept pace with productivity, it would have been $21.72 an hour in 2012, according to the Center for Economic and Policy Research.

Instead, the federal minimum wage is $7.25 and $9.32 in Washington, the highest in the nation. The purchasing power of the minimum wage peaked in the 1960s and has been falling ever since.

While a relatively small cohort works for the actual minimum, a raise to $15 would sweep far more people upward.

For advocates, it’s a matter of social justice at a time of historic inequality as well as good economics — workers with more disposable income will create more demand for goods and services. Much research has found that at least modest increases in the minimum have no discernible effect on employment (for an example, see here).

Opponents say raising the minimum wage will kill jobs and wound small companies. Workers with the least skills would not be hirable at higher costs and so the people the measure most claims to help would actually be hurt. Also, franchise owners, often operating on very thin margins, would face the weight of a higher wage, not the highly profitable fast-food corporations.

What do you think?

In current dollars the minimum wage in 2002 was $5.15 an hour.
Is the wait staff at your favorite restaurant 4 times more productive than it was 10 years ago?
In other words, did waiters and waitresses in 2012 wait on 4 times as many customers as they did in 2002 and provide the same level of service in the same amount of time?
The answer to that question would be NO.

In some industries it is impossible to increase productivity at the same rate as inflation.

Good wait staff already makes that amount.

-Raise minimum wage to $23.50/hr. Based on where minimum wage should be using 1970-2013 rise in food, shelter, and transportation.

-Eliminate all business subsidies (deductions/write-off’s/write-downs) except for employee expenses which are deducted dollar-for-dollar on all city, state, and Federal taxes and fees.

-Adjust Social Security and private/public retirement and pension payments using 1970-2013 price structure.

-Back down ALL costs, prices, fees, to January 1, 2009 levels and hold them for 10 years. Eliminating inflation.

-Recall ALL off-shore investments tax free, and disallow any further off-shore investments.

 

[TGN]

Here it is:

http://blogs.seattletimes.com/jontalton/2014/01/17/vote-should-seattle-raise-the-minimum-wage/