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Despite the debate over short-term effects, I think many forget that this is a rebellion over a general and widespread shift of income and wealth toward higher-
by calinet6 11y ago
Despite the debate over short-term effects, I think many forget that this is a rebellion over a general and widespread shift of income and wealth toward higher-paid executives and knowledge workers, and away from lower-paid service and production workers.
There are a ton of possible reasons for this (less powerful unions, automation, globalization, etc. etc.) but my favorite is that it happened simply because it could happen; because wages concentrate power and therefore self-reinforce. The power vacuum (and therefore value vacuum) that emerged out of that shift was filled, because it was available.
This is an effort to break that self-reinforcing cycle and say, hey, we as a society do not support the idea that corporations exist solely for the benefit of shareholders; we demand that they start existing a little more for the benefit of their employees too.
We can debate about what effects it will have or not til the cows come home, but the large scale effort is sensible and commendable to create a better economic balance. So far, there's very little evidence to show that it will make the sky fall.
- socalnate1 11y agoThe minimum wage is just really inefficient way to help people. I'd much rather see a large increase in the earned income tax credit (which directly helps those who need it most, without the distorting effects of a minimum wage) or an introduction of a basic income system.
- anigbrowl 11y agoHow is the Earned Income Tax Credit not an economic distortion? One could easily argue that it's a form of welfare to business as much as to people, with the government picking up the slack for employers who won't pay adequate wages. Minimum wage laws can indeed a challenge for small businesses and filter through to consumer prices, but wages are not the biggest or only expense most businesses face, and the pleas of poverty from many business owners do not stand up to rigorous scrutiny.
- greedo 11y agoIt may not be the biggest, or only expense, but it is the largest controllable expense for most retail and restaurants.