Economics: Minimum Wage

About increasing/decreasing/deletingdave123321

Who the hell would want to decrease or get rid of minimum wage? It's way too low as it is. Especially in certain states.

Who the hell would want to decrease or get rid of minimum wage? It's way too low as it is. Especially in certain states.

Pirate700

I guess decreasing it will lead to more jobs. But lower wage for people with minimum wage. Or something like that. And I have a bachelor in economics soon so I know what I'm talking about. Well not really. lol university. themajormayor

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

Aside from pretty right-wing and libertarian people, reducing or removing the minimum wage is never actually recommended. It's there for a reason.

Raising and lower a federal minimum wage has a lot of things associated. I personally believe minimum wage should be much more regional. Cities need to have higher minimum wages than the country and smaller towns. The people who are most affected by minimum wages are actually those in service industries that cannot just relocate.

I'm much more hesitant on blanketing federal minimum wage increases (though they too are necessary). I think right now federal minimum wage is just too low across the board though. I think it should be raised a bit and then states and cities need to adjust theirs up to meet the soaring cost of living in certain areas. 

Minimum wage is definitely necessary though. 

[QUOTE="themajormayor"]I guess decreasing it will lead to more jobs. But lower wage for people with minimum wage. Or something like that. And I have a bachelor in economics soon so I know what I'm talking about. Well not really. lol university. dave123321

Who the hell would want to decrease or get rid of minimum wage? It's way too low as it is. Especially in certain states.

Pirate700

[QUOTE="dave123321"][QUOTE="themajormayor"]I guess decreasing it will lead to more jobs. But lower wage for people with minimum wage. Or something like that. And I have a bachelor in economics soon so I know what I'm talking about. Well not really. lol university. themajormayor

Hello guys. So been hearing a lot about minimum wage lately. About increasing/decreasing/deleting, and it got me to wondering what this whole debate is about. So OT can have a nice and civil debate about the economic consequences of the minimum wage and how changing it will effect different groups(different workers and employers). So questions to think about: What is minimum wage? How does it effect a company's choices in terms of employing people? What is supply and demand all about? Benfits of minimum wage? Cons? How does this affect average wage? Hopefully our budding OTconimists can figure this out for us. dave123321

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

Aljosa23

[QUOTE="Pirate700"]

Who the hell would want to decrease or get rid of minimum wage? It's way too low as it is. Especially in certain states.

pie-junior

[QUOTE="Aljosa23"]

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

limpbizkit818

[QUOTE="dave123321"]Hello guys. So been hearing a lot about minimum wage lately. About increasing/decreasing/deleting, and it got me to wondering what this whole debate is about. So OT can have a nice and civil debate about the economic consequences of the minimum wage and how changing it will effect different groups(different workers and employers). So questions to think about: What is minimum wage? How does it effect a company's choices in terms of employing people? What is supply and demand all about? Benfits of minimum wage? Cons? How does this affect average wage? Hopefully our budding OTconimists can figure this out for us. comp_atkins

[QUOTE="Aljosa23"]

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

limpbizkit818

Well, obviously it should theoretically increase unemployment, but that doesn't necessarily seem to actually happen.

[QUOTE="limpbizkit818"][QUOTE="Aljosa23"]

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

Aljosa23

[QUOTE="HoolaHoopMan"]Paying your employees decent wages and covering them for healthcare is easily achievable, just look at Costco. Oh I'm sorry, I mean 'Raising the minimum wage will cost the economy jobs blah blah blah'. What do I know I'm not an old man sitting on a board with other old people. thegerg

I think 10 dollars an hour would be reasonable.  Would make the workers happier and the customers happier as they are dealing with happier workers.

[QUOTE="limpbizkit818"][QUOTE="Aljosa23"]

The arguments against minimum wage are mostly retarded and seem to ignore that even though cost of living and food have risen, the minimum wage has remained stagnant.

Aljosa23

[QUOTE="Aljosa23"]

[QUOTE="limpbizkit818"] One should not expect the minimum wage to support a family with shelter and food. It was never intended to do so. 5% of current hourly-paid workers make $7.25 or less. I'm pretty sure a large percentage of that 5% are teenagers.........Chemistian

The far right hates the worker and wants to allow companies to hire at slave wages. If you took away min wage it would hurt every worker because the min wage is the base for all wages. if you work for wal mart prepare to lose your job because there will always be someone more desperate then you and will offer your boss that they will work for half your wage.

Its all about giving more and more to big companies. Its the libertarian answer for everything! They act as if the private sector is run by saints and the government is evil. The private sector has an awful record at human rights. Have you seen china? working at fox con is so bad 14 people killed them self's in one year! Its so bad it makes people not want to live anymore.

They chain people to toilets if they need a extra bathroom break. They force women to sign contracts saying they wont date so they can't get knocked up and take time off work.

The private sector does not care about you. It wants to suck you dry and leave you with nothing.

Paying your employees decent wages and covering them for healthcare is easily achievable, just look at Costco. Oh I'm sorry, I mean 'Raising the minimum wage will cost the economy jobs blah blah blah'. What do I know I'm not an old man sitting on a board with other old people. HoolaHoopMan

Hello guys. So been hearing a lot about minimum wage lately. About increasing/decreasing/deleting, and it got me to wondering what this whole debate is about. So OT can have a nice and civil debate about the economic consequences of the minimum wage and how changing it will effect different groups(different workers and employers). So questions to think about:

What is minimum wage?

It's the lowest amount of pay that an employee must recieve for performing labour. Minimum wages are set by a contract and/or law. It's illegal for firms to pay their workers below the minimum set.

How does it effect a company's choices in terms of employing people?

Many International companies, such as Nike and Apple, have moved their production to countries where the minimum wage act isn't a major hurdle (think Pakistan, India & China). I mean, these companies want to maximise profits, and will do so by any means.

What is supply and demand all about?

Demand is the quanitity of goods or services that will be bought at any given price over a period of time. In economics, supply is known as the quantity of goods that sellers/businesses are prepared to sell at any given price over a period of time.

Below is a diagram we use when talking about demand and supply:

Benfits of minimum wage? Cons? How does this affect average wage?

Cons:

- Even if a minimum wage is set, workers could still be struggling to provide a basic living for themselves and families (I.E. poverty still occurs in many countries).

- Many businesses exploit/ignore the minimum wage act.

- If minimum wages for unskilled labour were to increase, then firms will be faced with the issue of their skilled workers seeking a pay rise.

Hopefully our budding OTconimists can figure this out for us. dave123321

The far right hates the worker and wants to allow companies to hire at slave wages. If you took away min wage it would hurt every worker because the min wage is the base for all wages. if you work for wal mart prepare to lose your job because there will always be someone more desperate then you and will offer your boss that they will work for half your wage.

Its all about giving more and more to big companies. Its the libertarian answer for everything! They act as if the private sector is run by saints and the government is evil. The private sector has an awful record at human rights. Have you seen china? working at fox con is so bad 14 people killed them self's in one year! Its so bad it makes people not want to live anymore.

They chain people to toilets if they need a extra bathroom break. They force women to sign contracts saying they wont date so they can't get knocked up and take time off work.

The private sector does not care about you. It wants to suck you dry and leave you with nothing.

osirisx3

[QUOTE="osirisx3"]

The far right hates the worker and wants to allow companies to hire at slave wages. If you took away min wage it would hurt every worker because the min wage is the base for all wages. if you work for wal mart prepare to lose your job because there will always be someone more desperate then you and will offer your boss that they will work for half your wage.

Its all about giving more and more to big companies. Its the libertarian answer for everything! They act as if the private sector is run by saints and the government is evil. The private sector has an awful record at human rights. Have you seen china? working at fox con is so bad 14 people killed them self's in one year! Its so bad it makes people not want to live anymore.

They chain people to toilets if they need a extra bathroom break. They force women to sign contracts saying they wont date so they can't get knocked up and take time off work.

The private sector does not care about you. It wants to suck you dry and leave you with nothing.

celebar

A non rebuttle i see

The Federal Reserve's monetary policy is largely independent of the minimum wage laws (nevertheless reverting back to the gold standard).mattbbpl

[QUOTE="mattbbpl"] The Federal Reserve's monetary policy is largely independent of the minimum wage laws (nevertheless reverting back to the gold standard).Fightingfan

Minimum wage should keep up with inflation, I guess.

[QUOTE="Fightingfan"][QUOTE="mattbbpl"] The Federal Reserve's monetary policy is largely independent of the minimum wage laws (nevertheless reverting back to the gold standard).mattbbpl

*The bad part is unless you have money you can't take advantage of the downward spikes of interest rates. Only helps the already rich, or financially established.

It's a short term solution to nothing that leads to hire prices...

I don't know much in the field but i think every company needs be looked at individually. Don't get me wrong I don't mind owners making couple million since they are the ones risking. (only people who don't deserve what they get most of the time is celbs) 

Well, obviously it should theoretically increase unemployment, but that doesn't necessarily seem to actually happen.coolbeans90

I'd imagine that's based on what market model (competitive v dynamic monopsony) you use to theorize about the labour market

caveat to myself: generally a minimum wage above a certain threshold should be expected to increase unemployment in both models 

[QUOTE="dave123321"]About increasing/decreasing/deletingJML897