They don't need to be bothered by real world experience, they have magic pencils. See, write $15 on a board, then draw an up arrow above it and point it at a poor person stick man, THAT lifts people out of poverty!!!! There! Now what was so hard about that????
Unfortunately, what really happens (leave aside the FACT that minimum wage was NEVER intended to be, and will never be, a wage a family could be supported by) is that everyone above that wage rate wants a bump too. This causes a businesses entire wage structure to bump up. Now Professor Magic Pencil is advocating a % increase to a businesses labor cost. Where, Prof. Magic Pencil does this money come from???? Oh, it will come from PROFITS!!!! You know that evil seed employers hoard only for themselves so they can live in luxury at the expense of the werkers living in squalor. So all businesses have the PROFITS to pay for a 50% increase in the labor costs???? Well, of course they do!! Prof. Magic Pencil can draw that in too! Werker-------$$$Profits....see? Just like that!! Of course, any planned plant and equipment upgrades or maintenance will have to wait. (does that mean some other worker doesn't get paid???) hummmm, details! Yeah, what usually happens is a business tries to raise its prices, to who? The public that just got a raise!! Am I the only one who sees a vicious cycle starting??? .Not Prof. Magic pencil!! So the newly minted raise meets the newly minted prices. Just wash, rinse, repeat! 1 question, who makes a family when they only earn minimum wage?Guys like Krugman, Reich, etc. I mean all of the points Reich makes here are dubious but this one just takes the cake:
"But because the higher minimum will also attract more workers into the job market, employers will have more choice of whom to hire..."
And if, as an employer, I have more choice b/c the labor pool is that much larger, why in the world would I hire someone poor, uneducated with no experience to boot?
The minimum wage is what it is so NON skilled workers can gain experience and hands on job training they wouldn't normally otherwise be able to get. Experience they then can build on and use their first, minimum wage job as a stepping stone to the next job and a future better life.
In other words, this dipshit doesn't even realize it, but he is saying a higher minimum wage would drastically HURT the poor, the very people Libs say they are an advocate for! Sheez...
Running a business might mean you understand microeconomics, but not macro.
The problem with this mind set is that a business sees wages paid out to employees as a loss. A macroeconomist doesn't see it that way. They see wages as the primary source of aggregate demand in the economy. And the higher the aggregate demand, the more sales businesses make.
The fact of the matter is that Robert Reich is understating the issue. Prior to 1972, wage to productivity ratios used to be close to 1:1. Today, it's 1:2 in the whole economy, but for minimum wage jobs it's 1:4. In other words, businesses are stealing three quarters of the value of their worker's labor.
Productivity is the main source of supply in our economy. Wages are the main source of demand. So long as supply is that much higher than demand, then it forces either one of two things to happen. Either prices must fall to meet demand, or demand must be shored up by borrowing money. New debt creation. You know, using the fucking credit card.
This dynamic is why we keep having one economic bubble right after another. And unless we address this problem, then we will eventually see a repeat of the 2008 financial crisis. The best way to avert such a crisis? Raise aggregate demand so it more closely follows supply. You can do that pretty easily by raising the minimum wage.
Does this dipshit really think that a higher minimum in going to attract more workers, and even if it did it would still only be attracting workers at the bottom which is hardly what this economy or employers need at this time.
If a higher minimum wage was going to create a larger labor pool, that would mean that there were jobs going unfilled at the bottom, which is hardly the case. Quite the contrary, one of the biggest gripes is about immigrants coming here and doing the bottom end work at half the price. Only an "intellectual" with no practical experience could say something so stupid, and the fact that Willy agrees with him proves it. I've never seen anyone get things so consistently wrong about anything to do with economics than WW. and today is no exception.
about Macro Economics. LSU didn’t teach you crap about Macro Economics.
Why does the self proclaimed business men like you claim to be assume they know anything about Macro Economics or Public Finance because they have few bucks in their pockets. You don’t.
If it is left up to the businessmen, minimum wage would $2 bucks an hour and demand will increase because of the low wages but supply will decrease over the long term because workers will die for lack of living wages.
Hey genius, why do tax payers like me have to pay for food stamps to workers at WalMart, McDonalds and the like which costs tax payers billions.
Walmart and McDonalds help the economy and first time employees by giving millions of people a job and work experience , who would otherwise be unemployed .
The unemployed qualify for billions more tax payer assistance than employees at Walmart/McDonalds .
Everyone has to start somewhere , very few start at the top .
Most people don't stay at their first job until retirement .
Workers with experience, work ethics , and common sense , will usually move to a better paying job if their company isn't paying them the going rate for qualified, productive employees .
Walmart and McDonalds don't require their entry level workers to sign a No Compete contract , they are free to move on to a better paying job in the same field if they wish .
If every minimum wage worker in the country was suddenly paid $ 5.00 more per hour , everything they bought would cost them $ 5.00 dollar more at the checkout counter , since it cost $5.00 more per hour to produce .
I don't understand why the obvious is so hard for so many to understand .
Businesses are in business to make money .
The more goods cost to produce the more they charge to consumers .
If it is left up to the businessmen, minimum wage would $2 bucks an hour and demand will increase because of the low wages but supply will decrease over the long term because workers will die for lack of living wages.
Hey genius, why do tax payers like me have to pay for food stamps to workers at WalMart, McDonalds and the like which costs tax payers billions.
If every minimum wage worker in the country was suddenly paid $ 5.00 more per hour , everything they bought would cost them $ 5.00 dollar more at the checkout counter , since it cost $5.00 more per hour to produce .
I don't understand why the obvious is so hard for so many to understand .
WalMart and McDonalds help first time employers. Suppose they employ part high-school students. Which fucking world are you living?
Really, one who is a complete moron is you. On top of that, you completely out of touch with reality and you should shut the fuck up.
"Does this dipshit really think that a higher minimum in going to attract more workers"
The point in raising the minimum wage isn't to "attract" more workers, but to increase aggregate demand. You increase aggregate demand, and you increase GDP and lower unemployment.
"If a higher minimum wage was going to create a larger labor pool"
It will.
"that would mean that there were jobs going unfilled at the bottom"
No, it doesn't. While the biggest job growth in recent years has been at the bottom, that doesn't mean that there are jobs unfilled there right now under the aggregate demand that this economy has CURRENTLY. Increase the minimum wage, and you will get job growth.
"Quite the contrary, one of the biggest gripes is about immigrants coming here and doing the bottom end work at half the price."
The bulk of immigrants are doing seasonal work. While some immigrants do low wage maid type jobs, they're primarily doing seasonal work like construction or farm work.
Historically, the ONLY time the minimum wage has not resulted in an increase in GDP and lowering unemployment rates, is when the economy was entering a recession. Every other time it's been raised, it's resulted in higher GDP and lower unemployment. Back in the 60's and 70's we used to raise the minimum wage every year. By 1970, the minimum wage reached it's highest value, adjusted for inflation. The result? An unemployment rate of just 2.7%, the 2nd lowest unemployment rate for any time in all of the 20th century.
This isn't that complex, GaG. Put more money into the pockets of the people who will spend it, and the economy will grow. It's common sense.
in their pockets come out of someone elses
you "create" nothing but imbalances.
If what you are saying is true then money supply is fixed and everything associated with money is static. What you today for potato is same as when the Federal Reserve was created.
Ignorance is bliss dude, stay in it.
You have already admitted to being a socialist, why even bother trying to "fix" capitalism, why don't you just be like Charlie the Commie, and just be honest about what you favor? and what you favor is that all "rich" people be taxed until there aren't anymore rich people.
Your message is an old and tired one. Socialism and all these "workers paradises" simply don't work. Hey Venezuela is a beautiful country, why don't you go visit so you can see first hand how badly your hero Chavez fucked it up before he died? Such a beautiful country, but so fucked up due to practices just like the ones you favor.
The American Workers have been getting a raw deal since President Nixon!
http://www.raisetheminimumwage.com/facts/entry/amount-with-inflation
make it's existence ok or efficient.
I remember John Kerry running around during the 2000 election saying "These people haven't had a raise in 17 years!"
Who the fk are "these people" he was referring to? When you take a job at minimum wage, you either rise up due to hard work and you get a raise or you don't work out and quit or get fired.
The whole idea that somebody would make minimum wage for 17 years straight , or since Nixon for fks sake, is just talking points for the macroeconomic con artists.
Libs perpetuate this bullshit, but yet again, when B.O. and the boys had the chance to raise the minimum wage a few years ago, they punted like a frightened little girl
If one can live on minimum wage i.e., pay all their bills and carry on respectable life without depending on social services then it is adequate. If not, then it is not.
Federal minimum wage today is $7.25 which equals $290/wk. Can you live on that? I know I cannot even if I give up all of current expenses other than food, shelter and clothing.
There company’s like Costco paying $15/hr and makes a decent profit
They don't need to be bothered by real world experience, they have magic pencils. See, write $15 on a board, then draw an up arrow above it and point it at a poor person stick man, THAT lifts people out of poverty!!!! There! Now what was so hard about that????
Unfortunately, what really happens (leave aside the FACT that minimum wage was NEVER intended to be, and will never be, a wage a family could be supported by) is that everyone above that wage rate wants a bump too. This causes a businesses entire wage structure to bump up. Now Professor Magic Pencil is advocating a % increase to a businesses labor cost. Where, Prof. Magic Pencil does this money come from???? Oh, it will come from PROFITS!!!! You know that evil seed employers hoard only for themselves so they can live in luxury at the expense of the werkers living in squalor.
So all businesses have the PROFITS to pay for a 50% increase in the labor costs???? Well, of course they do!! Prof. Magic Pencil can draw that in too! Werker-------$$$Profits....see? Just like that!! Of course, any planned plant and equipment upgrades or maintenance will have to wait. (does that mean some other worker doesn't get paid???) hummmm, details!
Yeah, what usually happens is a business tries to raise its prices, to who? The public that just got a raise!! Am I the only one who sees a vicious cycle starting??? .Not Prof. Magic pencil!!
So the newly minted raise meets the newly minted prices.
Just wash, rinse, repeat!
1 question, who makes a family when they only earn minimum wage?
Since you like your psychiatrist, are you keeping him?
They bring up commonsense they don’t have because they cannot understand complex issues. With Common Sense crap they make it to the level they can understand.
If humanity used common sense, then we would not have many of the things we have today. How can an engine push an automobile? How can large aircraft fly? If the inventors used common sense they would came to a not possible conclusion.
There is place for common sense and common sense has nothing to do with other things.
Go ahead call me stupid idiot which is sure sign of lack of understandin
only end up being hurtful. Minimum wage is one of them. Salaries and wages should be based on supply and demand and not what the government deems "right", especially when you take into account the difference in living expenses across this country, to have one set figure is mind-boggling.
I just read the article, quite a frustrating read
It's like finding out that Fungy or Pimpy was ever in charge of anything. Talk about ruining your day.
f one goes to the Bureau of Labor Statistics Inflation Calculator and plugs in $1.60 (the minimum wage in 1969, you find that in 2012 dollars the minimum wage should be $10 per hour if it were to match the rate considered "reasonable" 43 years ago, when the nation was significantly less wealthy and much less productive.
In 40 years of unparalleled wealth and income creation, the U.S. minimum wage has declined by roughly a third in real terms. "Official" measures of inflation have been gamed and massaged for decades to artificially lower the rate, for a variety of reasons: to mask the destructiveness to purchasing power of Federal Reserve policy, to lower the annual cost-of-living increases to Social Security recipients, and to generally make inept politicians look more competent than reality would allow.
All those claiming such an increase will destroy the nation (or equivalent hyperbole) need to explain how the nation survived the prosperous 1960s paying the equivalent of $10-$12/hour in minimum wage.
Exactly what has weakened the economy such that the lowest paid workers must bear the brunt of wage cuts?
Apologists for low wages claim we must "get competitive" with low-wage nations, as global wage arbitrage has cut wages everywhere. This claim overlooks the fact that the vast majority of minimum-wage positions are precisely the jobs that cannot be outsourced: cleaning offices, fast-food jobs, pizza delivery, agricultural work, and so on.
Other apologists claim that since these positions are "low productivity," they "deserve" lower wages. If we as a nation reckoned them worthy of $10-$12/hour 40 years ago, then why are low-productivity jobs less deserving now?
Still other apologists claim that raising the minimum wage would 1) destroy small businesses and 2) trigger painful increases in food and other prices.
The only way the minimum wage can hurt small business is if some small businesses are allowed to cheat and pay illegally low wages as a way of lowering the cost of their service. If the law were uniformly and aggressively enforced, for "black market" and above-market wages alike, then those cheating their employees would slowly be eliminated from the economy via heavy fines.
Once everyone is paying $10-$12/hour, even for informal work, the "playing field" will be leveled at a higher scale.
Given the modest share of the national income earned by low-paid workers, claims that costs would skyrocket are groundless. Yes, costs would rise, but not by enough to impoverish the nation.
What all those decrying restoration of a reasonable minimum wage overlook is that the working poor will spend most of their increased wages, and that will actually aid the economy where it counts. Aren't we tired yet of Federal Reserve policies that enable more skimming by the top 1% while giving nothing to the bottom 50%? The simple, straightforward way to correct the vast income imbalances is to restore the minimum wage to 1969 levels and adjust for under-reported inflation
I guess you could call him the father of the part-time job. Back in the 60s, 70s and probably 80s, minimum wage was geared to part time work either for students, or young workers trying to acquired some skills. It wasn't meant to be a job to raise a family, let alone be enough for one person to live on. Unfortunately these fast food, retail and the like jobs have morphed into a full-time job for life for adults who don't have an education, skills or competencies to compete globally for jobs that years ago only required a high school diploma. Whether liberals like it or not, the workforce pool is global for many, but not all, jobs.
The question is, who is going to take care of these people? They don't have any value to offer. Do you want the govt to take care of them, private sector, or a combination? I don't have a problem raising the minimum wage to $10, but many Progressives want $15. They'll never get it. But I can guarantee, anything above $10 will have consequences.
If one goes to the Bureau of Labor Statistics Inflation Calculator and plugs in $1.60 (the minimum wage in 1969, you find that in 2012 dollars the minimum wage should be $10 per hour if it were to match the rate considered "reasonable" 43 years ago, when the nation was significantly less wealthy and much less productive.
In 40 years of unparalleled wealth and income creation, the U.S. minimum wage has declined by roughly a third in real terms. "Official" measures of inflation have been gamed and massaged for decades to artificially lower the rate, for a variety of reasons: to mask the destructiveness to purchasing power of Federal Reserve policy, to lower the annual cost-of-living increases to Social Security recipients, and to generally make inept politicians look more competent than reality would allow.
All those claiming such an increase will destroy the nation (or equivalent hyperbole) need to explain how the nation survived the prosperous 1960s paying the equivalent of $10-$12/hour in minimum wage.
Exactly what has weakened the economy such that the lowest paid workers must bear the brunt of wage cuts?
Apologists for low wages claim we must "get competitive" with low-wage nations, as global wage arbitrage has cut wages everywhere. This claim overlooks the fact that the vast majority of minimum-wage positions are precisely the jobs that cannot be outsourced: cleaning offices, fast-food jobs, pizza delivery, agricultural work, and so on.
Other apologists claim that since these positions are "low productivity," they "deserve" lower wages. If we as a nation reckoned them worthy of $10-$12/hour 40 years ago, then why are low-productivity jobs less deserving now?
Still other apologists claim that raising the minimum wage would 1) destroy small businesses and 2) trigger painful increases in food and other prices.
The only way the minimum wage can hurt small business is if some small businesses are allowed to cheat and pay illegally low wages as a way of lowering the cost of their service. If the law were uniformly and aggressively enforced, for "black market" and above-market wages alike, then those cheating their employees would slowly be eliminated from the economy via heavy fines.
Once everyone is paying $10-$12/hour, even for informal work, the "playing field" will be leveled at a higher scale.
Given the modest share of the national income earned by low-paid workers, claims that costs would skyrocket are groundless. Yes, costs would rise, but not by enough to impoverish the nation.
What all those decrying restoration of a reasonable minimum wage overlook is that the working poor will spend most of their increased wages, and that will actually aid the economy where it counts. Aren't we tired yet of Federal Reserve policies that enable more skimming by the top 1% while giving nothing to the bottom 50%? The simple, straightforward way to correct the vast income imbalances is to restore the minimum wage to 1969 levels and adjust for under-reported inflation.
You and all the libs with your philosophy can all start their own businesses from scratch and pay them $50 an hour.
Oh yeah, almost forgot. Gee...you'll have to deal with a global/national recession, global competition, the IRS, OSHA, EEOC, EPA, local taxes, fees, regulation, payroll, Obamacare, liability insurance, accountants, attorneys, mortgage/rent, utilities and today's youth that wants everything handed to them on a platter.
Sounds like fun, huh?
If it is SO important, why didn't your hero Barry address this "problem" when he could have done something about and the Repubs couldn't have done jack squat to stop him.
But don't worry. He's working on it as we speak. As soon as he closes Gitmo, he'll get right to it.
$15 bucks an hour ain't going to happen. Neither is the Paycheck Fairness Act. Democrats are trying to paint the Republicans as insensitive, mean, party of the 1%, blah, blah, blah. This is their playbook.
I just read the article, quite a frustrating read.
You know, Cosette, prior to 1913, we didn't have a Federal Reserve. It was the free banking era. Central banking was a free market. The result? We had a bank panic every 2 or 3 years in those days. Imagine a 2008 style financial crisis every 3 years or so for 30 years straight. That's the free market at work.
Several states have their own minimum wage, which I think would ideally be better than a federal minimum wage, the only problem is that a few states have declared state minimum wages to be unconstitutional (like Louisiana).
When productivity has skyrocketed, and wages have remained flat, then it is in our national interest to raise the minimum wage, just to avert a future financial crisis. We've had a minimum wage now for the better part of a century now, and 70% of the time it's been raised, we've seen unemployment go down, and GDP go up. I think the facts are in on this one. The only time unemployment has gone up following a minimum wage was when the economy was entering into a recession. The facts are in. Raising the minimum wage is not harmful.
But, of course, you'll read the occasional shithead who will say, it prices lousy workers out of the job market. That it increases unemployment rates for low skill workers. That's utter bullshit.
Any worker's labor has a value. And minimum wage workers value, i.e. their productivity, is 4 times higher than the wages they're currently getting.
In order for the minimum wage to actually price low skill workers out of the job market, then the minimum wage would literally have to be $29 an hour or HIGHER.
Stop making excuses for wage slavery. But not raising the minimum wage we are forcing millions of Americans (not teenagers, but regular adults) to live in abject poverty. It raises the costs of public assistance programs like food stamps. Want to lower how much money we spend on food stamps? Raise the fucking minimum wage.
There is no fucking reason why anyone's blind subservience to this idiotic and failed idea of free market fundamentalism should take precedence over forcing millions of Americans to live lives of utter misery and poverty. Shitty Ayn Rand novels don't put food on the table. Raise the fucking minimum wage.
Guys like Krugman , Reich etc , don't have a clue understanding the numerous dire consequences raising the minimum wage .
If minimum wage is increased to $ 10.00 across the board, existing $10.00 workers will expect an automatic raise to $13.00 , existing $ 13.00 dollar workers will expect an automatic raise to $ 16.00 and on and on leading to rapid inflation , more unemployed youth and more unskilled workers in poverty .
Senior citizens on fixed incomes will be hurt by inflation caused by raising the minimum wage .
There are many ways to raise the minimum wage that will work for anyone , a few examples : learn a trade , practical education , start a small business , invent .
Giving someone more money to wash dishes won't help poor dishwashers for more than a week or two , by the end of the year their standard of living will be worse than it was .
Raising the minimum wage without any justification other than it looks good on paper, will always lead to inflation and more poverty .
Same song , different year . Oct. 3, 2009
"Yesterday's September labor market report was lousy by any measure, But for one group of Americans it was especially awful: the least skilled, especially young workers. Washington will deny the reality, and the media won't make the connection, but one reason for these job losses is the rising minimum wage.
Earlier this year, economist David Neumark of the University of California, Irvine, wrote on these pages that the 70-cent-an-hour increase in the minimum wage would cost some 300,000 jobs. Sure enough, the mandated increase to $7.25 took effect in July, and right on cue the August and September jobless numbers confirm the rapid disappearance of jobs for teenagers."
http://online.wsj.com/news/articles/SB10001424052970203440104574402820278669840?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052970203440104574402820278669840.htm
you have to CARE!!! its all about emotion, not stupid facts!
Balancing a national budget is like balancing a personal or business check book. Running a one man plumbing business and running corporation is completely different. Because, you ran plumbing business is not a qualification for becoming the CEO of IBM.
Like wise business men don’t know shit about Macro Economics or what the living wages should be or how the inflation rate is calculated.
Do you even know what is meant by “Basis Points”? Look it u
Tell me all you want about your "macro" b.s. if you have a struggling business and some jackass in the White House or some con "economist" who has no clue how to deal with real world business problems tells me to increase my payroll by over 100%!
And your typical, knee jerk liberal response of course doesn't address my point. If I have tons more qualified/experienced people for my minimum wage job at 15 bucks an hour, why would I hire the uneducated/inexperienced/poor?
And what do I do with the guy or gal who has busted their ass for me and is making $14 and here comes some new dude that doesn't have the experience nor has put the sweat and time in and jumps ahead of my $14 guy? Think that's a big office morale booster? I guess you'll tell me to bump him to $25 hour right?
Or should I just go out of business and hurt all my valued employees?
I expect no answers from you, just the basic lib no-nothing talking points. You will claim to be the advocate of the poor but really, you and Reich et. al. don't give a shit about them. It's ideology first, second and third with your type.
"Macro"" that!
...........productive investments and innovation over financialization. Abolish the Fed, eliminate the too-big-to-fail banks, tax speculative profits from high-frequency trading and other skimming operations at 90% and lower the corporate tax rate on productively invested capital to 5%