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This might seem counter intuitive, but think about things like this. The cost of everything is going up; so many propose raising the minimum wage to compensate

This might seem counter intuitive, but think about things like this. The cost of everything is going up; so many propose raising the minimum wage to compensate. This will provide some additional money to those beneath the minimum wage. However the price of literally everything will grow to consume that additional wage. In essence what raising that wage does is to devalue the dollar, meaning anyone not seeing a wage increase is actually being paid less relatively. The only winners in raising such a wage are those that seek rent from others. The land owners, the business owners, the 1% and maybe even just the 1% within the 1%. The actual solution, the way to increase the QUALITY of life, not the numbers on balance sheets, is to increase the size of the market. Remove arbitrary numeric limitations on workers entering a field (E.G. the monopoly on doctor training slots). Consolidate red tape and ensure that if predictable pre-conditions are met housing projects are approved. Also use actual civic planning, zoning, and land-value taxation to encourage high quality, higher density, and strong community development. Probably making more condos and making it easier to buy and sell housing.

SketchySeaBeast 8y ago
> Remove arbitrary numeric limitations on workers entering a field Isn't that going to have a hard cap based upon market forces instead then? > Probably making more condos and making it easier to buy and sell housing. So you're saying to let the land owners win more?
- mjevans 8y ago
  I'm saying that the act of raising minimum wage DOES NOT EFFECT how much land owners win / loose. It DOES cause the price of everything to go up however, so it has the net effect of wrecking the middle class. To actually increase //quality// of life, the good things must cost less to buy; that is achieved through taxing profits, increasing supply, and well designed market regulation in general.
vkou 8y ago
This is false. Raising the minimum wage only affects a small % of employers. In industries that pay minimum wage (retail), labour is often a small % of overall expenses. The impact of bringing a few people out of poverty is fairly minimal. Also, many expenses are completely independent from minimum wages. Housing is a great example. It's price is determined by access to credit, and macroeconomic trends that have nothing to do with how much a Starbucks barista gets paid. Medical costs are another great one. Nobody in the healthcare industry gets paid minimum wage.
- djrogers 8y ago
  It's even less than you'd think - the country's largest employer - WalMart - which is often stomped on as a 'minimum wage employer' only had 4,000 workers on minimum wage a few years ago, and has since raised their own minimum wage to $11/hr nationally. Minimum wage jobs are in fact exceedingly rare beyond entry level 'starter' jobs...
- mjevans 8y ago
  You do not understand the argument: this is NOT about the cost to employers. This is about ECON101; If the 'take home' money is more for the lowest end of employees, the price that the market is able to pay for goods that have NOT increased in quantity rises to absorb all of the added take home pay.
- Shivetya 8y ago
  TL;DR at bottom define small, so about twenty percent to labor is small? start inching up from there and many get scared quickly. plus it won't move many out of poverty what it will do is move many who are not employable out of a job. the people you hire at $15 are going to be held to a higher standard than those you would accept at $8, $9, or even $10. Plus you will get people come out of the wood work would never have considered "stooping" to such a job but for $15 an hour its fine then. So Mr Tattoo who has a bit of an attitude problem but you take him because he is available for $8 isn't someone you will let cross the threshold at $15. Little Ms May who is always late or out sick will be on the other side of the counter. Why, because once you break a mental threshold in pay you get people who would not had considered working there. Now they won't all be seeing a career but they will see a job that is worth their time. You want to help those in poverty. Then get government off their backs. From expensive government services and fees, to ordinance inspectors who troll poor neighborhoods, to the cops and legal system who prey on the very same. That $20 bucks you paid to update your license could be make or break it for some and that is just the tip of the ice burg. More low paying jobs are in regulated occupations which forces the poor to incur debt just trying to get licensed to work. TL;DR $15 an hour won't change the attitude of those demanding it, they will feel even more entitled because they are not suited for employment. Won't matter because it will bring out those who are.

SketchySeaBeast 8y ago

> Remove arbitrary numeric limitations on workers entering a field Isn't that going to have a hard cap based upon market forces instead then? > Probably making more condos and making it easier to buy and sell housing. So you're saying to let the land owners win more?

mjevans 8y ago
I'm saying that the act of raising minimum wage DOES NOT EFFECT how much land owners win / loose. It DOES cause the price of everything to go up however, so it has the net effect of wrecking the middle class. To actually increase //quality// of life, the good things must cost less to buy; that is achieved through taxing profits, increasing supply, and well designed market regulation in general.

vkou 8y ago

This is false. Raising the minimum wage only affects a small % of employers. In industries that pay minimum wage (retail), labour is often a small % of overall expenses. The impact of bringing a few people out of poverty is fairly minimal. Also, many expenses are completely independent from minimum wages. Housing is a great example. It's price is determined by access to credit, and macroeconomic trends that have nothing to do with how much a Starbucks barista gets paid. Medical costs are another great one. Nobody in the healthcare industry gets paid minimum wage.

djrogers 8y ago
It's even less than you'd think - the country's largest employer - WalMart - which is often stomped on as a 'minimum wage employer' only had 4,000 workers on minimum wage a few years ago, and has since raised their own minimum wage to $11/hr nationally. Minimum wage jobs are in fact exceedingly rare beyond entry level 'starter' jobs...
mjevans 8y ago
You do not understand the argument: this is NOT about the cost to employers. This is about ECON101; If the 'take home' money is more for the lowest end of employees, the price that the market is able to pay for goods that have NOT increased in quantity rises to absorb all of the added take home pay.
Shivetya 8y ago
TL;DR at bottom define small, so about twenty percent to labor is small? start inching up from there and many get scared quickly. plus it won't move many out of poverty what it will do is move many who are not employable out of a job. the people you hire at $15 are going to be held to a higher standard than those you would accept at $8, $9, or even $10. Plus you will get people come out of the wood work would never have considered "stooping" to such a job but for $15 an hour its fine then. So Mr Tattoo who has a bit of an attitude problem but you take him because he is available for $8 isn't someone you will let cross the threshold at $15. Little Ms May who is always late or out sick will be on the other side of the counter. Why, because once you break a mental threshold in pay you get people who would not had considered working there. Now they won't all be seeing a career but they will see a job that is worth their time. You want to help those in poverty. Then get government off their backs. From expensive government services and fees, to ordinance inspectors who troll poor neighborhoods, to the cops and legal system who prey on the very same. That $20 bucks you paid to update your license could be make or break it for some and that is just the tip of the ice burg. More low paying jobs are in regulated occupations which forces the poor to incur debt just trying to get licensed to work. TL;DR $15 an hour won't change the attitude of those demanding it, they will feel even more entitled because they are not suited for employment. Won't matter because it will bring out those who are.