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re: In 100 words or less how can raising the min. wage help the middle class?**
Posted on 1/30/14 at 10:28 am to doubleb
Posted on 1/30/14 at 10:28 am to doubleb
BTW, O'Reilly came out BIG TIME last night insisting that the GOP go along with Obama's 10.10 MW hike.
His logic: "There is nobody out there working at a job that isn't worth ten bucks an hour."
I think that's very shaky assertion on his part.
His logic: "There is nobody out there working at a job that isn't worth ten bucks an hour."
I think that's very shaky assertion on his part.
1
Posted on 1/30/14 at 10:32 am to doubleb
No but it would increase the banks seigniorage revenue because it would cause massive inflation.
Posted on 1/30/14 at 10:35 am to Homesick Tiger
Singer from American Idol.
Posted on 1/30/14 at 10:36 am to Zach
quote:
I think that's very shaky assertion on his part.
It is ridiculous to say that you can pay 10 bucks an hour in NYC and it equates to 10 bucks an hour in Baker, La.
The notion that one size fits all is a joke.
The Feds can set their own minimum wage standards and use sound economic formulas to do so. It's their prerogative, but in reality there is no magic number and if you're going to have a minimum wage (and it seems we have decided that we will); we need to let state and localities set their own.
Posted on 1/30/14 at 10:41 am to Homesick Tiger
quote:
Singer from American Idol.
Thanks. I've never seen American Idol. In fact, I'm pretty much retarded when it comes to pop culture. I listen to AM talk radio in the early morning and Fox does some kind of celebrity news update. I never know who the hell they are talking about.
Posted on 1/30/14 at 10:47 am to bigblake
quote:
Supposedly it goes like this:
Increase in MW give Mary 500 bucks a year more to spend.
Mary has a thing about shoes, so she buys 500 bucks worth of shoes at Pay Less.
The jump in sales motivates the owner of Pay Less to hire an extra worker.
Thus, a middle class job is created.
I know a lot of people will jump on you so but your argument is very common. $500 more in shoes, or food, or whatever.
$500 is really only revenue, the contribution margin is what retailer is really concerned about.
Let's just assume there is a 50% COGS.
Now we have $250. Let's leave out all Cost Accounting because it could get confusing and just say all of that all $250 goes to the profit line. After the 35% tax, $162.50 is actual earnings after tax.
In summary:
$500 in revenue where:
$250 to China & shipping company
$87.50 to government
$162.50 in profit
I'm illustrating the leakage where you cannot simply increase someone's wage, and then they spend 100% of the increase to balance it out.
Why even go that far into it? If an increase in minimum wage gives Mary $500 extra, then $500 is missing somewhere else in the economy. There is no net increase of wealth, only a transfer. Since Mary wasn't worth that $500 on her own, we've just wasted some economic potential by giving it to her.
Posted on 1/30/14 at 10:58 am to Jack Bauers HnK
(no message)
This post was edited on 1/30/14 at 6:38 pm
Posted on 1/30/14 at 12:00 pm to bigblake
This is how I look at it. People get mad when they see people living off of welfare. Why do people live off of welfare? Because they get more for not working. How do you get people off of welfare? Raise the minimum wage to where it is more profitable to work than to be on welfare.
Posted on 1/30/14 at 12:12 pm to doubleb
This minimum wage debate is a direct appeal to the lowest common denominator, at least in terms of its framing.
The decrease in the minimum wage has been nearly perfectly offset by the earned income tax credit, the sum of which is now equal today to where it was in the 1970s and in the mid to late 1990s. Some inflation adjustment is likely needed but, remember, the government tells us we don't have inflation because they remove food and energy from the calculation, so I don't know if they can even argue for said adjustment unless it's over a multi-year timeframe (which would be reasonable).
The key difference between the two is that the earned income tax credit is more effective at benefitting its intended audience. Everyone benefits from an increase in the minimum wage - even the 15 year old selling subs at Jimmy John's (for whom an increase is not needed from an economic perspective). Only the real low-income earners trying to support a family benefit from the earned income tax credit. It's simply more effective than the minimum wage.
Read this:
LINK
The decrease in the minimum wage has been nearly perfectly offset by the earned income tax credit, the sum of which is now equal today to where it was in the 1970s and in the mid to late 1990s. Some inflation adjustment is likely needed but, remember, the government tells us we don't have inflation because they remove food and energy from the calculation, so I don't know if they can even argue for said adjustment unless it's over a multi-year timeframe (which would be reasonable).
The key difference between the two is that the earned income tax credit is more effective at benefitting its intended audience. Everyone benefits from an increase in the minimum wage - even the 15 year old selling subs at Jimmy John's (for whom an increase is not needed from an economic perspective). Only the real low-income earners trying to support a family benefit from the earned income tax credit. It's simply more effective than the minimum wage.
Read this:
LINK
This post was edited on 1/30/14 at 12:14 pm
Posted on 1/30/14 at 12:16 pm to doubleb
quote:
In 100 words or less how can raising the min. wage help the middle class?**
Help?
Posted on 1/30/14 at 12:18 pm to doubleb
quote:
doubleb
In 100 words or less how can raising the min. wage help the middle class?**
It won't. I helps poor people get into the middle class.
Posted on 1/30/14 at 12:20 pm to SpidermanTUba
quote:
It won't. I helps poor people get into the middle class.
If you're relying on minimum wage to make a living, you're always going to be poor.
Posted on 1/30/14 at 12:21 pm to SpidermanTUba
quote:
It won't. I helps poor people get into the middle class.
Are you serious?
Posted on 1/30/14 at 12:23 pm to doubleb
it cant
Posted on 1/30/14 at 12:33 pm to dantes69
quote:
Supposedly it goes like this:
Increase in MW give Mary 500 bucks a year more to spend.
Mary has a thing about shoes, so she buys 500 bucks worth of shoes at Pay Less.
The jump in sales motivates the owner of Pay Less to hire an extra worker.
Thus, a middle class job is created.
2 things are OBVIOUSLY wrong about this....
1. If the MW is increased, the owner of Pay Less has to pay his current workers more and will not be hiring an additional employee.
2. An entry level job at Pay Less is not a middle class job (more like poverty level), nor are most entry level retail jobs.
Posted on 1/30/14 at 1:35 pm to Brightside Bengal
The purpose of a minimum wage increase is not to help the middle class. The purpose is to help poor people. Economic stimulation is a happy peripheral benefit.
Posted on 1/30/14 at 1:38 pm to JakeTheDog
quote:
Are you serious?
Yes.
Posted on 1/30/14 at 1:45 pm to Godfather1
quote:
If you're relying on minimum wage to make a living, you're always going to be poor.
In the real world, yes
Posted on 1/30/14 at 1:45 pm to SpidermanTUba
quote:No it won't. It drops more middle class to the lower class by cost increases in everything to make up for paying a higher minimum wage.
It won't. I helps poor people get into the middle class.
Posted on 1/30/14 at 1:46 pm to Cincinnati Bowtie
quote:
No it won't. It drops more middle class to the lower class by cost increases in everything to make up for paying a higher minimum wage.
Load of crap.
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