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Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

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Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#311
post #305

Earlier quoted context omitted.

> why do so many people want to live in the US? The same reason why a million refugees came to Germany: False expectations. What people expect from the US is a country with no taxes, great economy, and the ability to become a millionaire within of months. That’s why.

I'm sure it has nothing to do with escaping from violence or war or corruption or discrimination.

That is why the refugees flee to the western world in general.

The reason why they go to Germany over France or Austria, though, are the liberal refugee politics and the misinformation that is constantly produced by the people smugglers.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#312
post #198
post #141

Earlier quoted context omitted.

The Marxists and communists have tried doing that thing many times and have failed spectacularly. Business based market economy is the only (till now) successful and socially most beneficial type of society that has ever existed. I upvoted the OP because he/she/it (it may be a bot) has put this thing in clear words.

Marxists and communists have tried this without also sticking to democracy... The well known failings could just as well be due to the massize amount of corruption that came from the strong bases of power. We also had "real" market economies (no trust busting or the like) in the early 20th and it was shitty for a huge part of the population History is the biggest argument against all economic systems

Are you suggesting that in the West our democracies do not contain massive amounts of corruption stemming from strong bases of power?

I also question your suggestion that "real market economies" were responsible for the dispair that certain communities felt in the early 20th century. "Real" market economies really didn't have much of a chance to exist in the 20th century because by 1913 the Federal Reserve was installed. That ended self-regulated capitalism in the United States, at least. Europe followed suit shortly thereafter.

Just prior to the early 20th century, enormous numbers of people were liberated from the misery of famine and early mortality thanks to the innovations derived from a loosely-regulated market economy. Back then, nobody knew how to deal with a world where the vast percentage of infants born would live beyond early adulthood. Most poor people would just die and there would be no government, nor economic system, around to help anyone. So when these people, born into the late 19th century system, grew into adults living in the early 20th century system, policymakers and citizens alike had no idea how to respond to the challenges that arose. We did some really stupid things as a result, and we are still paying for, and suffering from, some of those policy decisions.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#313
post #284
post #219

Earlier quoted context omitted.

European social democracies have made it work by continuously re-constructing it. Employees and citizens of the welfare state are at the table when negotiating how to set rules for the managed capitalism. Check out Sweden for example.

Sweden and the rest of European economies built their wealth on typical capitalism. And I've checked out Sweden, after you've gone into its current situation it ain't so great as communists like Sanders make it to be

*Socialists like Sanders

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#314
post #308

Earlier quoted context omitted.

Basic income gives the poor bargaining power in wage negotiations. It would require cultural adaptation, but I know of few individuals whose whole needs can be satiated by just having food and shelter. People still want things . They take out insane loans, mismanage their money, and even sacrifice those base necessities to possess things. We have a strong consumer culture, and UBI can take advantage of that to reduce…

A glut is when the supply is available to anyone who wants it and additional supply goes unused. We've already established that we have the exact opposite problem. Our national infrastructure is crumbling because no one is fixing it. Skilled women stay home with their children because child care is unavailable. Homes go uncleaned, nails go un-manicured, etc, because no one is available to do these things. If we reduc…

The supply and demand of labor does not care what people need - it does not care at all that mothers want childcare, or the citizens want better roads. All that matters is if that mother or if the citizenry are willing to pay for it.

Predominantly most of that is due to the labor glut driving down median incomes and leaving people with less economic negotiating power to get the things they want done.

It isn't appropriate to talk in absolute figures of reducing labor supply. That is one side of an equation without considering the other. UBI would generate tremendous real demand for cheap housing, cheap healthy food, and all manner of amenities that can fit in that universal budget. Those demands would be met, because everyone than has the economic negotiating power equal to their UBI as a minimum, rather than today where many people have no (unemployed) or negative (indebted) negotiating power at all and thus have no effective economic influence at all.

It is always about supply and demand, and to only talk about economics in terms of one or the other is to argue for an intended outcome rather than seeking out the best possible one.

If there were actual demand for childcare, the going rate of childcare workers would continuously rise as capital fought to be supplied by limited demand. The rising prices would create incentive for people to enter that labor force. That does not happen because real economic demand does not exist at those levels - it is not an actual labor shortage if all you want is childcare workers at minimum wage. If I want rocket scientists at minimum wage, I cannot claim there is a shortage of rocket scientists period if they are not willing to take the lowest possible payment I can give them.

There is a shortage of something when the real supply cannot meet demand at sustainable price points. Are Nannies expensive? Yes. Is that not a sustainable cost? Absolutely not, Nannies are a valuable commodity, and those that can do a good job should be paid for the scarcity of their skillset. The reason there are not more Nannies is not because of some incredibly bullshit argument about how "nobody wants to do the job, we would pay them anything, but people just refuse to act rationally economically" it is because nobody is willing to pay anyone sufficient wages to justify the career pivot into the discipline.

And that relates back to my central argument for UBI - our economy prioritizes the work "worth doing" as a central tenant of capitalism. All a UBI does is potentially drop out the labor force of the work being done now that is the least worth doing to begin with.

But TLDR, fundamentally, it is important to recognize that in capitalist economies, demand is not people wanting something (better roads), it is the money willing to be spent on the supply. So if nobody will supply the money to build better roads at rates construction workers are willing to take, you do not have a shortage of construction workers, you have a shortage of funds to pay for better roads and thus you are not generating enough demand for them.

We have a demand problem, not a supply problem, as long as major corporations are hoarding money and the stock market is at all time highs, capital is out there. There is just nothing the controllers of that capital actually want that anyone who isn't working now could supply.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#315
post #299

Earlier quoted context omitted.

Not to mention capitalist countries working very hard to undermine marxists and communists by pretty much any means possible.

That's rich, considering the number of 'marxist' rebel groups murdering nuns and social leaders and bombing schools.

How does that compare to a capitalist killing a 1000people in one day by collapsing a building on them? (Rana Plaza)

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#316
post #161

Earlier quoted context omitted.

I'm quite sure the "un-construction" he's talking about takes the lines of, say, revoking a business license. I have no idea why you imagined it would involve beating and robbing anyone.

> I have no idea why you imagined it would involve beating and robbing anyone. Reading history books gives you strange ideas.

He history books that are full of strikebreakers and company stores beating and robbing employees?

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#317

Earlier quoted context omitted.

The government could achieve full-employment by drafting everyone or paying them to dig ditches then fill them in again, but that would be really wasteful. If there's actually nothing useful for some people to do (they can't find a job that supports them) then we should stop thinking of employment as a requirement for survival. If the economy can't find full-time roles for some people, then we as a society — though t…

If there's actually nothing useful for some people to do (they can't find a job that supports them) then we should stop thinking of employment as a requirement for survival. They could fix our crumbling infrastructure, provide child care for working women, in-home care for our elderly, reduce overcrowding by making prisons larger, build community gardens, or a hundred other popular left wing causes. The claim that we…

Unbalanced comparisons.

Basic income frees people to do private work. Government projects, to be comparable, would have to pay people for their work, as you know,and also add a premium to cover the time spent.

Basic income and government spending on projects are separate ideas that are only related because they compete for budget.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#318
post #230

Earlier quoted context omitted.

Let's continue your thought: If minimum wage increases put upward pressure on wages generally, then what happens? Higher wage levels in general means more money in people's pockets, and this can turn into general price inflation (especially since business costs have risen due to the general level of wages going up). So let's assume you now have inflation. This means everything just got more expensive, so now that new…

> So let's assume you now have inflation. You're basically arguing that it's raising the minimum wage that increases inflation, when this is patently not true. Inflation is almost always present, regardless of modifications to minimum wage.

Raising the price doesn't raise the price; that's what I'm hearing. Seems legit.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#319

Earlier quoted context omitted.

If there's actually nothing useful for some people to do (they can't find a job that supports them) then we should stop thinking of employment as a requirement for survival. They could fix our crumbling infrastructure, provide child care for working women, in-home care for our elderly, reduce overcrowding by making prisons larger, build community gardens, or a hundred other popular left wing causes. The claim that we…

Unbalanced comparisons. Basic income frees people to do private work. Government projects, to be comparable, would have to pay people for their work, as you know,and also add a premium to cover the time spent. Basic income and government spending on projects are separate ideas that are only related because they compete for budget.

The point is that if BI people also work, BI and fixing infrastructure are not competing for resources. We can have our cake and eat it too.

Re: Will minimum wage hikes lead to a huge boost in automation? Only if we're lucky

#320
post #314

Earlier quoted context omitted.

A glut is when the supply is available to anyone who wants it and additional supply goes unused. We've already established that we have the exact opposite problem. Our national infrastructure is crumbling because no one is fixing it. Skilled women stay home with their children because child care is unavailable. Homes go uncleaned, nails go un-manicured, etc, because no one is available to do these things. If we reduc…

The supply and demand of labor does not care what people need - it does not care at all that mothers want childcare, or the citizens want better roads. All that matters is if that mother or if the citizenry are willing to pay for it. Predominantly most of that is due to the labor glut driving down median incomes and leaving people with less economic negotiating power to get the things they want done. It isn't appropr…

Conversely, if there was an oversupply of labor prices would come down. Note that I said labor is scarce, not that there is a shortage.

The fact that prices remain high suggest people are choosing not to work, not that their labor is worthless and they can't find any job. Why do we need a BI if labor is valuable and people are merely lazy? Why do we want to make a scarce resource even scarcer?

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