Coito ergo sum wrote:
piscator wrote:
piscator wrote:
And McDonald's and Taco Bell and Walmart will still have plenty of entry level job openings when the minimum wage hits $15/hr, because Walmart and Taco Bell and McDonald's need those workers to operate their businesses.
So what? When you raise the minimum wage to $15, then you get a whole new pool of workers becoming interested in those jobs who otherwise wouldn't be interested in those jobs. Anyone working in a more demanding field, making $35k is going to wonder why their not wanking all day in the aisles at Walmart, because they can make nearly the same money. And, all the out of work college graduates would very quickly see McDonalds burger flipping as a viable alternative. That, again, raises the lower rung of the ladder, so the idiot who sat around playing Playstation from age 16 to 19 is not going to be able to beat out the competition for the Micky D and Walmart jobs....
People who make $35k before the minimum wage hike will find themselves making more after without having to go anywhere. Their employers need them even more than minimum wage employers need minimum wage employees, else the job would have paid less to start with. Employers who pay above minimum wage don't do it for charity CES. They do it because they need to retain good people. The tide raises all boats.
That is not necessarily true. Raising the minimum wage does not necessarily increase mid-range salaries accordingly.
Qualifier "Accordingly"=Strawman=semantic retreat.
Do you know any wage earner who's dollar-amount wages have stayed static since the 90s? Do you think higher wages across the board are just the result of increased demand for all labor?
Wages are set by supply and demand, unless there is a legally mandated wage.
Like the legally mandated minimum wage that has been the central focus of this thread?
Legally mandated wages affect labor supply whether you like it or not. If you want to retain your skilled welders or staff structural engineers, you have to compete with firms recruiting for Davis Bacon jobs, else your skilled workers are wasting their time to stay with you for 1/2 the $$.
Prevailing wages and many union wages are scaled off minimum wages. This means that minimum wages effect a lot more than minimum wage earners. The flood tide may take some time to reach the various bays and backwaters, but it invariably gets there.
The rising minimum wage does not necessarily raise all boats as you say. The wage spectrum can be condensed, and lower skilled jobs can be paid more and that may not materially or significantly or proportionally effect somewhat higher wage positions.
To think it works that way is to take time out and freeze your thinking at the day after a minimum wage hike. 2 years after a minimum wage hike, attorneys and accountants and registered land surveyors are paying their people more and charging a higher hourly rate for themselves. No one works for $1/day anymore. This is due to the keel of the ship rising with the tide over time.
You PRESUME it will. But, you're wrong. Employers would be behaving like charities if they did that. Instead, they will continue to pay the market rate for most positions.
As I've explained, the minimum wage drives the labor market across time.
And, what good is it for a rising tide to raise all boats? If we just move to a situation where $15 an hour is crap wages, and every other income level is scaled up proportionatelly, and inflation rises such that the cost of stuff doubles too, then people will be clamoring that $15 is not a living wage and we have to raise it again. What good is that?
What good is it when the economy heats up? What good is it when the Dow Jones index rises?
Periodic wage hikes are good for the economy as a whole because they increase the amount of $$ in circulation. There's more entrepreneurial activity, more tax revenues, more opportunities for wealth creation. This may be temporary, but it's mid-term temporary. And it can balance budgets and lever lasting effects that weren't there previously.
It may be an inconvenience for rigid and inflexible thinkers who don't like changes, but it benefits many more.