IT'S TIME TO GET YOUR GAMEFACE ON!
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Some won't survive an increase of 50%-100% of their employee expense... so I guess in some cases... yes. It isn't just $5-7 and hour increase... it increases the employer side payroll tax.Are you saying the economy in America is so robust (and this goes before the pandemic) that businesses, especially small businesses, can't afford to pay their employees a livable wage?
The Fed doesn't create inflation here in America, what kind of nonsense is that?
(Arguably a notable driver of inflation in the last year or so during the pandemic, but certainly not the standard)
I disagree completely with #4.
At my job employees get the same wage regardless of productivity or how hard they work.
Also I have done much harder and more productive work at much lower paying jobs.
Frequently people are not paid based on their effort or productivity or whatever you want to call it.
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Employers are quite happy to pay well below the productivity benefit derived from the employee. There would be no internet billionaires if the CEOs were not deriving wealth from the productivity created by others.
Is this effect being seen in, for example, Seattle, which already has a $15 wage?
Note I just looked up, according to the studies I saw approximately 40% of working Americans earn under $15/hr, this would be a significant pay-raise for something like 1/3rd of the country.
But you were seeming to say that employers always pay people what they are worth.Effort and productivity are separate things. Someone can be giving maximum effort, but still deficient in productivity, or vice versa. When I suggest productivity, it refers to how much $$$ the employer can make off of you, or potentially your position in the company (likely a pool of employees).
Anyone who feels their time and productivity is more valuable than what their employer is willing to pay is free to seek other opportunities. If they are right, they are very likely to find someone that will pay them more. The example you give proves my point, you were previously in a job that required more production for less pay, and you left that job for one that now pays you more.
We have EITC and a laundry list of programs that address this. Is there really a good argument that raising minimum wage to a living wage is better than targeting welfare where needed?To the part about paying $15 bucks to sweep the theater, I would argue yes, why not? Yes normally this is staffed by like high-school kids, but what about someone taking the job to make ends meet when there might not be anything else around? I think you cannot differentiate that way, or if you do then they need a sliding scale for school-aged workers, as I believe Utah has because 2 of my kids worked at Lagoon under this program at 14, and only promote that job to them, but if they can't find any, then they pay the minimum. Plus this is such a small part of the worker market to worry about. Just pay them the minimum like everyone else. A job is a job and it wouldn't be needed if it weren't making someone money somewhere up the chain.
Do people think that increasing the minimum wage is simply going to take money out of business owners hands, and give it to employees?
Every economic policy by government creates a reaction by the market. Business owners have invested time and capital, potentially taken out loans or engaged in other risk, are not simply going to move forward business as usual. They are going to take measures to minimize their losses (outsource, automate, raise prices, hire under the table, restructure the business, etc.).
Many companies will consolidate low-skilled jobs into a fewer number of jobs that pay above $15 an hour.
We have EITC and a laundry list of programs that address this. Is there really a good argument that raising minimum wage to a living wage is better than targeting welfare where needed?
EITC, child tax credit, daycare tax credit, SNAP, housing assistance, utility assistance, all targeting programs.
Nobody has even gotten into a breakdown of who earns minimum wage and % in poverty earning it.
I've read similar studies over the years. One claimed only 3.2% work for minimum wage, and only 14% of families on govt assistance have a minimum wage worker. Now, the obvious problem with that one was not adding a higher tier, say up to $10/hr or so, so we get a broader picture.