Topic: Please raise minimum wage to $15 click here for your support! - page 2. (Read 1974 times)

This is sort of crazy. The global economy is still recovering from the 2008/09 recession and the unions are pushing for raising the minimum wage to astronomical levels. The only thing which is going to happen out of this is that more and more firms will shut down, raising the unemployment rate to new heights. The agriculture sector will be the most severely affected among all.

Right. All companies will just outsource their operation elsewhere.

Many 3rd world countries have build up infrastructure and train up their workforce to service international companies and customers. And they work for peanut comparing to US wages.

Forget the minimum wage. There's no need for politics. Just cut out the middle men and give everyone a FRN printer so we can each just print out the money that we feel we are entitled to for ourselves.

raise minimum wage and everything else will cost more. Everything is linked together (salary being the lowest of all). So if you raise the salary, you can be sure that everything else will rise more than what you gain from the minimum wage rise.

And yes if you raise the minimum wage too much they will be replaced by automated machines.

No; if you are worth $15 dollars an hour, you will already be paid $15 an hour.  What if you're not worth $15 an hour and minimum wage is raised so that you have to take at least that much?  In other words, what if you cost a company more than you produce?  You don't get a pay increase, you get fired.  It has nothing to do with productivity, it has to do with efficiency.

Let's say a machine costs $12 an hour to produce $20 worth of goods or service an hour.  20 - 12 = $8 profit/hr.

Let's say a person is paid $10 an hour to produce $20 worth of goods or service an hour.  20 - 10 = $10 profit/hr.

The better option is the person.

Let's say the person has to work for $15 minimum an hour to produce $20 worth of goods or service an hour.  20 - 15 = $5 profit/hr.

The machine is the better option, but the person is still doable depending on the job.

However, consider this:

A machine costs $20 an hour to produce $10 worth of goods or service.  10 - 20 = $10 deficit/hr.

A person has to work for $15 minimum an hour to produce $10 worth of goods or service.  10 - 15 = $5 deficit/hr.

Clearly the better option, between the two, is the person; however, this doesn't mean the person will have a job, it means he will cost the company $5 an hour to work there.  Nobody can work that job anymore, because it's not profitable.  The job goes away, or gets consolidated into another job at that company, increasing the work load of the people still there and keeping the guy who doesn't have work unemployed.

In other words, a $15 minimum wage means anyone worth <$15 an hour now makes $0 an hour.  Their lives now must be paid by the people who do make more than $15 minimum wage, whether directly e.g. friends or parents, or indirectly i.e. welfare.  When is this ever sustainable?

Can someone prove me wrong on something major I've said about history and economics? Please? I hate being right about this sort of thing

Yup, looks like it. All the previous changes were at ~2%. The next one, from Oct 2014 is 3%, so just slightly higher.

https://www.gov.uk/national-minimum-wage-rates

Going to have to double check that but if they do increase it every year then they probably are adjusting peoples wages for the inflation.

Minimum wage should be extinct.

It only makes harder for people to enter the market, and kills jobs.

Also contributes with the inflation and stuff.

Just one city that actually did it. We'll see the effects! Actually Seattle may be able to sustain it with the huge concentration of Amazon, Boeing, Microsoft, etc employees with lots of disposable income to spend on more expensive restaurant bills, more expensive groceries, etc.

Whose productivity increases? Productivity index data is available for the whole economy or for big sectors of industry, but it does not mean that the productivity of a small retail store or restaurant has increased by the same factor.

LOL causing crash in economy, creating huge unemployment just to be able to say "We told you so!" is a bit extreme, and probably it will only have a very short-term educational effect.


They do increase it every year. Don't they?

But isn't raising the minimum wage along with productivity increases sustainable? Why would that mean companies immediately start automating, when more people have more money to spend on their goods? Raising it to $1000 is unrealistic, but not $10 - $15.

They're planning on raising the minimum wage now here in the UK, they're re-calculating for hyperinflation.

I agree. Sadly, those who work MW jobs generally do not. These people should be looking for jobs above minimum wage, rather than asking for the minimum wage to be raised. The only way to illustrate the point is to raise MW far too high in a very short time and make people see for themselves what happens.

You are just a damn cheapskate.

Raise it to $1000 !!!

It'll be awesome until hoards of unemployed start raiding the houses of employed ones, to get their goods. If the system is to work properly, all the low skilled (majority of population?) must have some opportunities for employment. Driving MW too high is definitely not a way to go.

Well, they're doing it in Seattle. If this spurs increased adoption of automated/robotic cashiers, restaurant staff, food preparation systems, etc, that'd be awesome.

The minimum wage here in Michigan just got raised from $7.40 to $8.15 as of Sept 1 and it's supposed to keep on going to like $9.10 (I think) over the next few years. I think it was a republican ploy to keep the democrats from running on a higher hike in the mw in the next election. 

...so that these scum bags can all be replaced by automated machines and techies who deserve that pay...