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This is false.That's actually a huge problem with the minimum wage nonsense. It often prices unskilled labor right out of the market. Why hire 10 guys to dig for fair wages when you can just hire one and a Bobcat (or whatever the hell you dig ditches with).
Instead of 10 people having jobs, one is employed.
Push this 15/hour crap and unemployment will rise. History shows us this is true and there is no reason to think this time would be any different.
Numerous states raised their minimum wages higher than the federal level during the 1997-2007 period the federal minimum wage remained stuck at $5.15. Research by the Fiscal Policy Institute and others showed that states that raised their minimum wages above the federal level experienced better employment and small business trends than states that did not.
In the 2015 report, Minimum Wage Policy and the Resulting Effect on Employment, the research institute Integrity Florida observes, "Economists cite several reasons why increases in the minimum wage, which raise employers’ cost, generally do not cost jobs. Increased pay adds money to workers’ pocketbooks and allows them to buy more goods and services, creating higher demand, which in turn requires hiring more workers. The higher wage may make it easier to attract applicants and results in less turnover of workers, lowering costs of employers." They report, "Our examination of employment statistics in states found no evidence of employment loss in states that have increased the minimum wage and more evidence that suggests employment increases faster when there is an increase in the minimum wage."
Yuuup.The people who benefit the most from a minimum wage increase tend to spend more money locally which benefits local business and often helps to increase employment. It is the trickle down bullshit which doesn’t work.
Nope.Minimum wage screws over those who busted their ass to make more than minimum.
Odd. I wonder why it is that world renowned economists disagree. Friedman, Sowell, and Walter Williams come immediately to mind as being against any form of minimum wage. Here's a study worth reading.There have also been studies on the effects of employment on the areas and countries that have raised their min. wage drastically, to $15 or more in some cases, and unemployment didn't skyrocket or increase all that much either.
“Minimum wage laws are about as clear a case as one can find of a measure the effects of which are precisely the opposite of those intended by the men of good will who support it. Many proponents of minimum wage laws quite properly deplore extremely low rates; they regard them as a sign of poverty; and they hope, by outlawing wage rates below some specified level, to reduce poverty. In fact, insofar as minimum wage laws have any effect at all, their effect is clearly to increase poverty. The state can legislate a minimum wage rate. It can hardly require employers to hire at that minimum all who were formerly employed at wages below the minimum. It is clearly not in the interest of employers to do so. The effect of the minimum wage is therefore to make unemployment higher than it otherwise would be.”
Milton Friedman, Capitalism and Freedom [1962]
Article by Walter WilliamsUnfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Econom
Lawrence F. Katz and Alan B. Krueger, “The Effect of the Minimum Wage on the Fast Food Industry,” Industrial Relations Section, Princeton University, February 1992.
David Card, “Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage,” Industrial and Labor Relations Review, October 1992.
David Card and Alan Krueger, Myth and Measurement: The New Economics of the Minimum Wage (Princeton, NJ: Princeton University Press, 1995).
David Card and Alan B. Krueger, “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply,” American Economic Review, December 2000 (in this reply, Card and Krueger update earlier findings and refute critics).
Jared Bernstein and John Schmitt, Economic Policy Institute, Making Work Pay: The Impact of the 1996-97 Minimum Wage Increase, 1998.
Jerold Waltman, Allan McBride and Nicole Camhout, “Minimum Wage Increases and the Business Failure Rate,” Journal of Economic Issues, March 1998.
A Report by the National Economic Council, The Minimum Wage: Increasing the Reward for Work, March 2000.
Holly Sklar, Laryssa Mykyta and Susan Wefald, Raise The Floor: Wages and Policies That Work For All Of Us (Boston: South End Press, 2001/2002), Ch. 4 and pp. 102-08.
Marilyn P. Watkins, Economic Opportunity Institute, “Still Working Well: Washington’s Minimum Wage and the Beginnings of Economic Recovery,” January 21, 2004.
Amy Chasanov, Economic Policy Institute, No Longer Getting By: An Increase in the Minimum Wage is Long Overdue, May 2004.
Fiscal Policy Institute, States with Minimum Wages above the Federal Level Have Had Faster Small Business and Retail Job Growth, March 2006 (update of 2004 report).
John Burton and Amy Hanauer, Center for American Progress and Policy Matters Ohio, Good for Business: Small Business Growth and State Minimum Wages, May 2006.
Paul K. Sonn, Citywide Minimum Wage Laws: A New Policy Tool for Local Governments, (originally published by Brennan Center for Justice) National Employment Law Project, May 2006.
Liana Fox, Economic Policy Institute, Minimum Wage Trends: Understanding past and contemporary research, November 8, 2006.
Paul Wolfson, Economic Policy Institute, State Minimum Wages: A Policy That Works, November 27, 2006.
Arindrajit Dube, Suresh Naidu and Michael Reich, “The Economic Effects of a Citywide Minimum Wage,” Industrial & Labor Relations Review, July 2007.
Jerold L. Waltman, Minimum Wage Policy in Great Britain and the United States (New York: Algora, 2008), pp. 17-19, 132-136, 151-162, 178-180.
Sylvia Allegretto, Arindrajit Dube and Michael Reich, Do Minimum Wages Really Reduce Teen Employment?, Institute for Research on Labor and Employment, Univ. of CA, Berkeley, June 28, 2008.
Michael F. Thompson, Indiana Business Research Center, “Minimum Wage Impacts on Employment: A Look at Indiana, Illinois and Surrounding Midwestern States,” Indiana Business Review, Fall 2008.
Hristos Doucouliagos and T. D. Stanley, "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," British Journal of Industrial Relations, vol. 47, no. 2, 2009.
Sylvia Allegretto, Arindrajit Dube and Michael Reich, Spacial Heterogeneity and Minimum Wages: Employment Estimates for Teens Using Cross-State Commuting Zones, Institute for Research on Labor and Employment, Univ. of CA, Berkeley, June 25, 2009.
Arindrajit Dube, T. William Lester and Michael Reich, Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties, Institute for Research on Labor and Employment, Univ. of CA, Berkeley, August 2008.
Published by The Review of Economics and Statistics, November 2010.
John Schmitt and David Rosnick, The Wage and Employment Impact of Minimum‐Wage Laws in Three Cities,Center for Economic and Policy Research, March 2011.
Sylvia Allegretto, Arindrajit Dube and Michael Reich, Do Minimum Wages Really Reduce Teen Employment? Accounting for Heterogeneity and Selectivity in State Panel Data, Institute for Research on Labor and Employment, Univ. of CA, Berkeley, June 21, 2010.
Published by Industrial Relations, April 2011.
Anne Thompson, What Is Causing Record-High Teen Unemployment? Range of Economic Factors Drives High Teen Unemployment, But Minimum Wage Not One of Them, National Employment Law Project, October 2011.
Sylvia Allegretto, Arindrajit Dube, Michael Reich and Ben Zipperer, Credible Research Designs for Minimum Wage Studies, Institute for Research on Labor and Employment, IRLE Working Paper No. 148-13, 2013
John Schmidt, Why Does the Minimum Wage Have No Discernible Effect on Employment?, (Important overview of years of research), Center for Economic and Policy Research, February 2013.
Michael Reich, Ken Jacobs and Miranda Dietz (eds.), When Mandates Work: Raising Labor Standards at the Local Level (Berkeley CA: University of California Press) 2014.
Michael Reich, The Troubling Fine Print In The Claim That Raising The Minimum Wage Will Cost Jobs, (Response to CBO report), Think Progress, February 19, 2014.
Michael Reich, No, a Minimum-Wage Boost Won’t Kill Jobs, (Response to CBO report), Politico, February 21. 2014.
Michael Reich, Ken Jacobs and Annette Bernhardt, Local Minimum Wage Laws: Impacts on Workers, Families and Businesses, Institute for Research on Labor and Employment, IRLE Working Paper No. 104-14, March 2014.
Dale Belman and Paul J. Wolfson, The New Minimum Wage Research, W.E. Upjohn Institute for Employment Research, Employment Research 21:2, 2014.
Dale Belman and Paul J. Wolfson, What Does the Minimum Wage Do?, W.E. Upjohn Institute for Employment Research, (book) 2014.
Center for Economic and Policy Research, States That Raised Their MinimumWage in 2014 Had Stronger Job Growth Than Those That Didn't, April 2014.
Center for Economic and Policy Research, Update on the Thirteen States that Raised their Minimum Wage, August 2014.
Daniel Kuehn, The Importance of Study Design in the Minimum Wage Debate, Economic Policy Institute, September 2014.
Justin Wolfers and Jan Zilinsky, Higher Wages for Low-Income Workers Lead to Higher Productivity, Peterson Institute for International Economics, January 13, 2015.
Peterson Institute for International Economics, Raising Lower-Level Wages: When and Why it Makes Economic Sense, April 2015.
David Cooper, Lawrence Mishel and John Schmit, We Can Afford a $12.00 Federal Minimum Wage in 2020, Economic Policy Institute, April 2015.
National Employment Law Project, City Minimum Wage Laws: Recent Trends and Economic Evidence, Updated May 2015.
Alan Stonecipher and Ben Wilcox, Minimum Wage Policy and the Resulting Effect on Employment, Integrity Florida, July 20, 2015
Paul J. Wolfson and Dale Belman, 15 Years Of Research on U.S. Employment and the Minimum Wage, Tuck School of Business Working Paper No. 2705499, December 2015
National Employment Law Project, Raise Wages, Kill Jobs? Seven Decades of Historical Data Find No Correlation Between Minimum Wage Increases and Employment Levels, May 2016
How can you argue it? With studies I can counter with other studies? OK.This is false.
Hahaha world renowned?? Maybe for being pro-Rich to a fault.Odd. I wonder why it is that world renowned economists disagree. Friedman, Sowell, and Walter Williams come immediately to mind.
http://sci-hub.tw/10.3386/w23532Here's a study worth reading. http://sci-hub.tw/10.3386/w23532
Hahaha so now you're resorting to posting crap from someone who claims that modern min. wage increases are somehow inherently racist because in the 1930's there were some racist motivations for raising the min. wage??Article by Walter Williams
Hahaha so you expect others to read, and be convinced by, your studies but if others post studies that contradict yours, no matter how good they might be, that is just too much work for you read and consider?I sure as hell don't feel like reading all the studies either for or against.
Employers don't think like this.Just think for a minute as if you were an employer. Remove feelings from the equation.
Would you hire somebody for X amount if they're not worth X?
Pretty damn unlikely.
How can you argue it? With studies I can counter with other studies? OK.
I am well aware that there are studies on both sides of the issue which is why I quoted economists directly. I sure as hell don't feel like reading all the studies either for or against.
Just think for a minute as if you were an employer. Remove feelings from the equation.
Would you hire somebody for X amount if they're not worth X?
Pretty damn unlikely.
Why should employees make more money? Just because?
There's been a pretty big push by certain elements who are seemingly oblivious to simple economics to raise the minimum wage to $15.00. He caved before he was forced to.
The liklihood that it would hurt some employees was always very high.
You don't get something for nothing.
I'd be pretty damn pissed if it were me but nobody is forced to work for them at $15/hr or $10/hr.
Fair enough.He's not entitled to raise them nor is anything entitled to make more. What I meant is he went out to media and sold the idea that they were giving more employees and used this PR spin as publicity while in the end... it's not that true.
Don't get the wrong idea, I think raising minimum wage too fast would be bad. I only meant that what he did was false advertising and he should take responsibility.
"is impossible to police and helpful to markets and investors... Far from being so injurious to the economy that its practice must be criminalized, insiders buying and selling stocks based on their knowledge play a critical role in keeping asset prices honest—in keeping prices from lying to the public about corporate realities."
I hope the media pressure make them review their decision(s).
Amazon's spokesperson says the increase in wages offsets and surpasses their total cash compensation of their former wages + incentive-based bonus... meanwhile some workers contradict this saying they will now earn less than before.
Right, the folks who were under-performing or doing the bare minimum were probably getting smaller/zero bonuses and are now thrilled by the increase in base wages and elimination of incentive-pay. It makes sense, they get paid even better to do the minimum amount of work. Meanwhile those who were nailing all of their performance metrics, maximizing their incentive pay, now have their wages capped along with their under-performing peers. I've been there as recently as 3 years ago, and made the decision to move elsewhere in my company, which allowed me to keep my incentive pay.
Socialism... Everyone (supposedly) works equally. Thus we all (supposedly) get paid the same.
It's what the millenials wanted right?
Personally I prefer to have bonuses if I work harder than everyone gets the same pay. Because... well someone doing the bare minimum gets paid the same as someone been a hero on the floor..
Stupid and counter-productive because said "hero" will just slack off and you lose overall output.
Also, now, there's 0 incentive to innovate or work harder.
I like to be compensated for my ideas and hard work and I think this should be the norm. You work the minimum you get X. You bring new ideas and train others, you get YZ.
It's not true that because you have the same job title that you do the same amount of work, this should be recognized and years of work isn't the way.
A bit off-topic. Amazon is privately owned, and increasing hourly wages while dropping incentive pay doesn't make them socialist.
The majority of millennials, sure, but broad strokes like "millenials want socialism" paints a distorted picture. I'm on the older end of the millennial generation (32 years) and have been a lifelong Republican. We're probably outnumbered 2-to-1, but there are still a lot of votes in my generation that can swing things the (R)ight way.
Would you hire somebody for X amount if they're not worth X? Pretty damn unlikely.
Yeah but there are 2 sides to the coin. The ole dangling the carrot makes sense for driving hard work - BUT that shouldn't come at the cost of say... working excessive hours, not taking time off, etc... You shouldn't have to give up raising a family on the prospect of getting a promotion... But thats what it has become as people keep having kids at later and later ages.... until the point where it's so late they can't have any and have to pay a surrogate or something
This is what our salary system has become... You work hard (60+ hour weeks) all on the PROSPECT of becoming promoted and getting a good raise / bonus. But not everyone gets what they want still.... Yet they always continue to dangle that carrot and insinuate you need to work more.
Instead, we need better regulation to limit everyone to 40 hours (Anything else MUST be paid time and half REGARDLESS of being salary or not)... That tells you who is TRULY productive and who is not.
Years ago I worked at a place that promised all pay increases would be merit based. They even instituted an extensive program to evaluate all employees using not only manager and peer input, but other productivity metrics as well. So when I found out from someone who had helped crunch the numbers that I was tied with one other guy for most highly rated programmer/analyst, I was thrilled. Then I discovered that everybody got the same percentage increase and I was pissed. There were a few people there that everybody knew were lucky to keep their jobs, and a lot more that only deserved a COLA. The turnover got bad after that, and 6 months later I was working somewhere else too. So yeah, Socialism sounds good, but doesn't work because when people work harder (or better), they expect to get more in return. It's human nature.
Easy fix. Get rid of the welfare State.You just put up your own fallacy. If I had a business that required employees because I couldn't do all the work myself, and if after paying my employees I enjoyed a substantial profit, then it doesn't matter how stupid the work is or how stupid I think the employee is. If I want that money, I have to hire the employees.
If I have a business that requires employees, and requires me to pay my employees a substandard wage in order to keep the doors open, I have a failed business.
If I pay my employees so poorly that they qualify for subsidies, food stamps and other government benefits while I take an upper-middle class wage out of that business, that makes my business a tax-subsidized business. If my business is subsidized by the government, then local, state and federal governments have a right to pass laws concerning how I compensate my employees.
Economics 101.
Easy fix. Get rid of the welfare State.
Cathy Newman is that you?That's dumb. So you're saying that you'd prefer civil war and the murder of all the wealthy elites, followed by a new socialist government controlled at the federal level?
That's dumb. So you're saying that you'd prefer civil war and the murder of all the wealthy elites, followed by a new socialist government controlled at the federal level?
Cathy Newman is that you?
Way to spin a cost cut Bezos -- save money by raising the minimum wage.
I know you think you're being clever, but there isn't any irony there.ROFL! Please, tell me someone else sees the irony here!
Should the majority be getting a bonus over the minority? If the majority is getting a bonus over the minority is it then a bonus? Is it then an award for performance or is it an intrinsic change?
Remove feelings from the equation.
Would you hire somebody for X amount if they're not worth X?
Pretty damn unlikely.
If a union gets into amazon.....all the workers will pay union dues and make even less.
I know you think you're being clever, but there isn't any irony there.
Anyway, you can feel free to pretend that the worst-case scenario is exactly what would happen just because feelings.
Civil war...
Mass-murder.....
Nobody can get a job....
Socialist gov't.....
Your earlier comment is one appeal to fear after another.
Then you threw in a Trump tax-cut remark for....random reasons.
You're silly.
Yeah but there are 2 sides to the coin. The ole dangling the carrot makes sense for driving hard work - BUT that shouldn't come at the cost of say... working excessive hours, not taking time off, etc... You shouldn't have to give up raising a family on the prospect of getting a promotion... But thats what it has become as people keep having kids at later and later ages.... until the point where it's so late they can't have any and have to pay a surrogate or something
This is what our salary system has become... You work hard (60+ hour weeks) all on the PROSPECT of becoming promoted and getting a good raise / bonus. But not everyone gets what they want still.... Yet they always continue to dangle that carrot and insinuate you need to work more.
Instead, we need better regulation to limit everyone to 40 hours (Anything else MUST be paid time and half REGARDLESS of being salary or not)... That tells you who is TRULY productive and who is not.