Originally Posted by Rexanglorum
The America worker's ability to divide and subdivide his or her fellow workers is truly remarkable. The 1% will keep on winning as long as the 99% hates each other so passionately. Every online discussion about raising the minimum wage brings out the 30k millionaire brigade in force. There is almost palpable glee from the legions of underpaid pharmacy techs, EMTs and car salesmen when a kiosk, any where on Earth pops up in a fast food place because we all know that "burger flippers" deserve to be punished for their greed.
In the aggregate, of course, minimum wage hikes never behave like an Econ 1 book predicts. Most labor markets are not especially competitive and most employers enjoy monopsony power so increases in minimum wage have little or no disemployment effects. Furthermore, most firms are already fairly well automated so mass automation is not really a recourse available to most employers.
In real life, in this country at least, increases in minimum wage mean a very small decrease in employment, a very small increase in prices. The two biggest changes are an increase in pay and a decrease in profits. The latter is why business elites campaign so hard against raising the minimum wage and the former is why every lower middle class worker in America hates minimum hikes, they work, they make life better for the people one rung lower on the totem pole.
-This so much.
Folk taking pride in telling others to be happy with their crumbs, because they have to make due with my scraps, and never once do they consider that maybe he should make the 1 percenters share of that 7 course meal they got in front of them.
-25K in nothing, a single person can barely have a decent life making that, and not to mention with inflation they are getting a pay cut every year. Yet somehow the only answer people have to that is................umm.......bootstraps
-Everyone loves to play junior economist and strictly talk about "a minimum wage kills jobs". That by itself it true but their is flip side to it also:
If people are getting paid **** wages, they most likely have a **** life. They are under nourished, overworked because they probably work multiple jobs, stressed, and not well rested. This all decreases productivity.
Pay people a better wage, they can support themselves more and be more productive. More productive workers will lead to increase revenues and that would likely offset their wage increase.
Not only that, the minimum wage is so low now that raise to around $10 won't wipe out jobs like people swear it will. So all the doom and gloom is unwarranted
Now, to compound to this that people not only want to keep wages low, they all want to cut the social safety too. So worker at the bottom gotta fight for their life to "make" it
-I wonder when the table turns, and it is a "free trade" agreement sending someone's jobs overseas, they are this sympathetic to the needs of a corporation.
-Or when another recession wipes out their job, yet the corporation gets a bailout and they are left to "bootstrap", that they are this sympathetic to the needs of a corporation
-Or when the healthy pool of middle class consumers start to dry up, and their job is in peril, that they are this sympathetic to the needs of a corporation outsourcing their job
This is the new America Dream apparently, where killing yourself in hopes of make 50K a year , so you have the privilege kick the next man on his way up.
The robots are coming regardless, the talking point that they are now a response to folk wanting decent wages because companies "have no other choice" is simply no true.
And once again people focus only on the substitution effect and never consider the scale effect.
Yes robots will replace SOME workers, but they will also increase production, increases in production leads to increases in revenue which leads to not only more investment in capital (in this case the robots) but also labor.
Plus I seriously doubt every robot coming will be a perfect substitute for a worker. Some may, but many others will probably be complements.
And then the same story plays out, more production, more revenue, higher profits, and more workers being hired.
There was a lot of doom and gloom about computers replacing people in the early 1990s, and look how that turned out; or look at how mobile tech has expanded our economy and lead to increases in production.
BTW; I'm not in favor of $15 minimum wage. But I think the currently state of affairs is appalling.
-Set it like around $10.10,
-Greatly extend the EIC (thank you for at least this good idea Milton Friedman) through closing tax loopholes, taxing capital gains properly, cutting tax credits for upper middle class and wealthy (ain't no reason you should be able to right off the interest on your mansion) and cutting corporate welfare.
-Cut, uncap, and put progressive rates on payroll taxes
-Cut sales taxes and extend them to services.
-Repel most of the business friendly things in the Taft Hartley Act
-Switch to a single payer health system. If folk can't swallow that: Merge Medicare and Medicaid. If conservatives want to be so heartless against the working poor, they gonna have to screw over the old too. Lemme see how many of those clown governors would be willing to say that openly come election time
-Construct a supplementary quality public transportation system, so that poor folk seriously don't have to rely on cars, target in places of great need. Opening up the options for many workers, and crushes the monopsony power that constraint on workers to firms
-And get my Roosevelt and try my best to undo all the rent seeking policies killing competition in our economy.
-In return, run Uncle Sam like 10% of that money companies got stashed overseas one time, and we never tax money made overseas again.
So there, poor and middle class people get a pay increase, get a valuable benefit, the cost are spread out. Best of all these programs are progressive most everyone will benefit from them..........or we can just keep things they way they are and you know....... bootstraps