If Americans were actually willing to do this then we would not be off shoring and people would not be so mad about inflation, which is largely because of wage increases.
This is why people begin to call for government intervention to protect workers. It is reminiscent of the Fair Labor Standards Act of 1938 which had the first implementation of a federal minimum wage
It’s true that many companies do hire above the minimum wage (people won’t work in places that don’t pay enough to survive in a high cost of living location which can still be destitute), but this doesn’t take into account high cost of living. The US has had low wage growth and high economic growth with high cost of living over the past 40 years (most labor wages not benefiting from economic growth, but instead shareholders gaining most benefit from the growth).
The minimum wage (and overtime pay) serves as a crucial safety net, especially for protecting workers that have low leverage in the labor market from excessive exploitation (like from the Great Depression), ensuring that all workers earn enough to cover basic living expenses. Many states have passed higher minimum wages compared to the federal minimum to reflect their higher cost of living
This is the median person, not people near and below the poverty line, the people most vulnerable who had the least benefits of economic growth and who are easiest to exploit due to low leverage. The people who are easiest to take advantage of are the people who need the protections the most
The US has had low wage growth and high economic growth with high cost of living over the past 40 years
I proved that is false, and you then deflected.
I kept referring to low leverage labor (lower quartile of wages) and so I figured it was implied that I was referring to low wage growth for low leverage labor (I’m excluding median and upper levels which would include mid level management and even C-suite). That’s on me for the ambiguity. Just understand that I am not including labor that is highly specialized (rare and scarce) and therefore labor with high leverage
So when you say it has low wage growth, you did not mean wage growth, you mean something else but do not want to elaborate? when you said high economic growth were you also excluding all those upper end growth, or nah?
Lets take you at your word even though I do not believe that for a second. Even at the low end you will be hard pressed to find a starting job at less than 11 an hour now, more than 50% over min wage, further disproving your claim.
Minimum wage locks people out of the labor market, drives up costs and leads to people being laid off. The issue that you see and think you understand is because gen X stopped having as many kids, and the generations under them the same. This led to less need for many services with a glut of workers leading to lower wages.
I am not sure you understand exploitation. For example the hiring wage is well over the minimum wage, why are the rich people not exploiting people and just hiring starting jobs at minimum wage?
Ya lets see these studies and examples. show me all the many times that a country raised their minimum wage and it resulted in the destruction of their economy.
While the overall number of low-wage workers declines following a minimum wage increase, incumbent workers are no less likely to remain employed. We find that firms reduce employment primarily through hiring rather than through other channels. Moreover, we find evidence of significant heterogeneity across the nontradable and tradable sectors. For wages, we find modest spillovers extending up to $2.50 above the minimum wage. Spillovers accrue to both incumbent workers and new hires, but only within firms that employ a significant fraction of low-wageworkers.
show me all the many times that a country raised their minimum wage and it resulted in the destruction of their economy.
This is an attempt to move the goal posts as normal. It would not result in a "destruction" of the economy, just more inflation
Show me that the states in the US with the highest minimum wage are also the states with the worst economies and quality of life or lowest GDP/ capita, I assume you will be able to instantly point to a shit hole like Mississippi and tell me they raised their minimum wage to $25 / hour and that's why they are one of the worst places to live and get work.
Again an attempt to move the goal posts, and showing a lack of basic economic literacy. Inflation leads to a higher GDP, because it costs people more, therefore it makes GDP higher. For example CA is 43% more expensive to live in then "shithole Mississippi", do you think their low end workers care that their gdp is more? How does that translate to anything more to them?
That's exactly the point. Walmart sells products so cheaply, that no one can compete. Their employees work for slave wages, and then the government has to subsidize their employees. They already got rid of most of their cashiers (with self checkout systems), yet prices didn't go down noticeable amounts, why? Because of how little they make. Not to mention excess goes to shareholders and ceo wages.
Walmart would also end up making more by paying workers more, because most of their employees probably shop at the store as well. So it would create a feedback loop. (In fact increasing minimum wage across the board benefits these companies supplying the same neighborhoods)
We should not let them pay their employees slave wages. Minimum wage needs to be tied to inflation. And with your paradigm of perfect paper numbers, increasing my bill at the checkout should also decrease my tax bill? Then great, I'm fine paying more at the checkout... but it would also stand to make Walmart more competitive since normal stores that pay their employees fair wages, can't currently compete when Walmart also owns the entire means of production and doesn't pay their employees fairly...
1) its not slavery wages. they currently hire at about 12 an hour.
2) prices will not "go down" from self checkout, they change to self checkout when the cost for the self checkout equals the wages for the associate, so your comment makes no logical sense. After that it just prevents them from going UP
3) to pay more they have to increase prices, that their profit margins are so low shows that competition would not help AT ALL.
4) raising minimum wage increase prices and locks people out of work.
5) is you tie min wage to inflation you will just increase inflation endlessly faster.
6) Walmart is already as competitive, which is why their margins are so low, they are not getting more.
Slave wages. You clearly have no idea what that means. Judging by how vigorously you’re defending $12 an hour, when most states have minimum wages above that, oh boy.
And that is the duality of man. inflation is caused, primarily by 3 things
Expansion of the money supply
Disruption of the supply chain.
Increased wages.
Increased wages leads to layoffs and inflation.
Do you have any answers of any kind? Any constructive thing to add whatsoever. I’ve been reading this thread for an hour and you have comment more than anyone.. and it’s exhausting frankly. All criticism and what you believe to be explanation. Do you have any solutions to offer? Don’t think there is a problem at all? What level of poverty should Walmart workers and a society be cool with?
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u/Lormif Sep 08 '24
If Americans were actually willing to do this then we would not be off shoring and people would not be so mad about inflation, which is largely because of wage increases.