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I used to say this too, but then I realized I didn't actually believe it. In order for that to be true I'd have to believe that we could remove SNAP and Walmar
by Consultant32452 9y ago
I used to say this too, but then I realized I didn't actually believe it. In order for that to be true I'd have to believe that we could remove SNAP and Walmart workers would be unaffected because they'd just be able to demand higher wages. Since I don't believe Walmart workers would be able to demand higher wages, then SNAP must not be subsidizing Walmart's payroll.
I do agree with the last sentence of your first paragraph though. Walmart benefits MUCH more from non-employee SNAP beneficiaries than it could ever save in employee wages. And it's not just the SNAP dollars it redeems. Every earned dollar not spent on food (because of SNAP) is a dollar that same person could spend on clothing or other goods sold at Walmart.
>Yet another argument for raising the minimum wage
Raising the minimum wage harms the lowest skilled and most poorly educated workers. If your productivity warrants $10/hr but the minimum wage is $15/hr, you're simply unemployed. First we provide poor people with abhorrent schooling in our failing public school system, denying them the skills they need to get a decent job, and then we require employers prejudice against these same vulnerable workers. Sure, the workers on the margins of being worth $15/hr get a boost, but everyone under them on the economic ladder is harmed until inflation catches up and washes out the raise.
- frgtpsswrdlame 9y ago>Raising the minimum wage harms the lowest skilled and most poorly educated workers... Actually economists are uncertain about that. It's not as simple as you make it seem.
- bryanlarsen 9y ago"If your productivity warrants $10/hr but the minimum wage is $15/hr, you're simply unemployed" That assumes that your productivity is absolute and not relative. And productivity is always relative. In other words, what makes a company viable is the cost structure of its competitors. If competitors are local than a minimum wage rise has little effect on employment. If competitors are international than a local minimum wage rise has a major effect. The vast majority of minimum wage jobs in the States are in service industries with local competitors.
- Consultant32452 9y agoAutomation is also a local competitor. Disability (leaving the workforce altogether) is also a local competitor. The labor participation rate today matches the rate in the 1970s, when we largely weren't allowing women to get jobs.