piscator wrote: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.
Not at all -- you claimed "a rising tide lifts all boats. A tide doesn't lift boats disproportionately. All the boats rise. A minimum wage will not necessarily raise mid-range salaries, and will certainly not necessarily raise them proportionately. A rising tide does NOT lift all these boats.
piscator wrote:
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?
For "all" labor? No. Higher wages are due to supply and demand for given jobs. Some jobs have gone down in wage or remained roughly stagnant, depending on the industry. In the 1990s, for example, IT guys were writing their own checks, just about.
piscator wrote:
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?
Yes, but setting the minimum wage doesn't set the wage for mid-range, higher, salaries and hourly wages.
piscator wrote:
Legally mandated wages affect labor supply whether you like it or not.
Of course they do. If the legally mandated wage is higher than the wage that would be set by the supply and demand interplay, then the demand will be reduced and there will be a surplus supply of labor. I.e. higher unemployment.
piscator wrote:
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 $$.
Sure. The skilled workers need to be paid their going rate or they will go elsewhere, as they should. What does that have to do with the minimum wage?
piscator wrote:
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.
Prevailing wages are not scaled off minimum wages. They're comparative rates based off the private sector.
Union rates are often negotiated entirely distinct from any minimum wage. They're negotiated collectively.
piscator wrote:
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 think attorneys and such make what theymake because of the minimum wage? You'll need to demonstrate that somehow. It seems to me to be a patently untenable idea.
piscator wrote:
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.
Provide some evidence for that, if you would. Thanks.
To suggest that the minimum wage of $7.50 or whatever it is an hour drives the labor market across town seems to me to be nonsensical. Employers don't set wages that way. "Oh, let me see -- the minimum wage just went up to $9 an hour, so I better pay my attorneys an extra $10k a year. A law firm looks at its competition and how much they pay, and they choose a strategy, either salary leader, competitive pay, or trailing salary. Some purposefully pay a little less, for example,and look for the "hungry" worker who is going to do the job for less money. They will also understand that they will lose some employees to turnover as they seek higher paying positions, but they make a conscious decision based on their business model.
piscator wrote:
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?
Who said anything about the economy heating up? Not me. And, certainly not you.
What makes you think raising theminimum wage "heats up" the economy? Any evidence?
piscator wrote:
Periodic wage hikes are good for the economy as a whole because they increase the amount of $$ in circulation.
No they don't. That's not how the money supply increases at all. The same amount of money is in circulation after a minimum wage hike. It's not as if an employer is sitting on piles of money in a hole in the ground that is not circulated. Where do you get this?
piscator wrote:
There's more entrepreneurial activity,
How so? A higher minimum wage makes entrepreneurs more likely to go into business? What is the bollocks?
piscator wrote:
more tax revenues,
Less, because it increases unemployment.
piscator wrote:
more opportunities for wealth creation.
Again, how so?
piscator wrote:
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.
This has nothing to do with rigid inflexible thinking. This is just that you're making baseless assertions. A higher minimum wage can balance budgets? How do you come to believe that? Why not raise the minimum wage to $50 an hour then? The economy will go gangbusters, entrepreneurs will be everywhere and the budgets will be balanced - the lion will lie down with the lamb....
I'm shocked you even seriously believe what you're saying. No economist does.