$15/hr Min Wage and Rent Increases (Now A Min Wage Discussion)

Fla is a red state. Republican Gov, voted for Trump, and still voted in a state wide 15 min wage. It’s not a Trump or Biden thing. Wether it’s becomes federal instead of state I don’t know. I’m speaking in hypotheticals. How would it affect housing?

This is such a broad question but I'll give some thoughts on it:

1. I think, if anything, we will see a "phased" increase in the minimum wage. I don't think you'll see it go from $7.25 to $15 overnight (I certainly hope not). When the minimum wage was increased from $5.15 to $7.25 in the late 2000s, it was increased three times in 2007 - 2009 to $5.85, $6.55, and $7.25, respectively.

2. If an increase in unemployment from an increase in the minimum wage is offset by an increase in welfare benefits and/or unemployment benefits, you'll see more of the lower end rental market either become Section 8 housing (or pseudo Section 8). Investment residential real estate has performed pretty well in 2020 because tenants that lost their jobs are making pretty good money being unemployed with the increased UI benefits.

3. Housing is generally a decent inflation hedge. I think you'll see housing prices going up on a nominal basis. What the impact would be on "real" housing values, I'm not sure.

Very interested to see the effects on Section 8/ “affordable housing” that is tied to area median income.

Why should it be increased? Minimum wage is for those with no skills and mainly for young workers. If you are 50 making minimum wage, thats no one's fault but your fricking own. Its bad enough you can't fire people for being such sorry arse workers for fear of them crying racism, and now you want to double their pay right off the rip with no added skills. fricking stupid as frick. If you want to make more than minimum wage, get some skills or have better work ethic instead of being a lazy entitled bum.

I bet you believe overall wage increases have kept track with overall inflation.

I’ll give you a hint. No. Regardless of minimum wage, most people in this country are well underpaid compared to 20/30 years ago.

quote:

---

most people in this country are well underpaid compared to 20/30 years ago.

---

What data are you using for this statement?

My chart was using median not average therefore it is not skewed due to the top earners. One difference is mine shows household versus yours shows individual.

Your graph shows an increase in real wages in every group except maybe the bottom 10th percentile (hard to tell due to the scale). The scale of your chart trying to show the different percentiles really compresses the chart making it hard to really see the data.

It does seem very obvious that every line increased from 2000 to 2018. Both your chart and my chart contradict your statement that overall wages have not kept up with inflation. Both of our charts show an increase in median real earnings.

I don't understand why someone who wants a job at $8/hr and an employer who wants to offer said job at the pay rate can't do so because it would be illegal.

Where is justice in that?
Where is equity in that?
Why should the government say that the company should either send jobs to Mexico, replace with robots, or go out of business to a fortune 500 that can absorb the increase?
If we want jobs here, why does a politician hate that?

the government is saying, for right or wrong, that businesses can not exploit people for cheap labor