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A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

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Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#221
post #96

Earlier quoted context omitted.

When a person is desperate, 'voluntary' starts to lose all meaning. If you are dead broke and half starved and I offered you a take it or leave it offer to work carrying rocks for $2 an hour so you can get a sandwich and you agree, is that really voluntary? I do agree with you about teenagers and other people that don't need the money in order to live. For dependents and people that agree not to get public assistance…

Yes, it's much better to prevent any employment opportunity for that person. Situation A: I can choose between no employment (bad), and exploitative employment (slightly less bad). Situation B: With the benevolent intention of a minimum wage legislated into existence, I can "choose" no employment (same bad as before). You don't make someone worse off by increasing the number of options. You don't make people better o…

As an employer seeking to exploit the working poor in order to improve profits and justify my seven digit salary, I wholeheartedly agree with your assessment.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#222

Probably an unpopular opinion, but: Isn't raising the minimum essentially trying to save a sinking ship by adding more water to the ocean? Seems like time would be better spent ensuring that everyone has food, housing, and healthcare no matter what they do (easier said than done, of course).

It's more like trying to save a sinking ship by telling the crew on the ship they can only use high-quality licensed ship repair equipment, instead patching the holes with whatever they can improvise. Yes, it would be better if they used high quality hull repair equipment, but sometimes it's not available and insisting that's the only thing you're allowed to use while the ship is sinking and people are struggling to…

Yeah, fair. People need help now. But how long can we continue kicking this problem down the road. We need to tie this thing to inflation or just admit that it's not the solution.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#223

Earlier quoted context omitted.

Whether they deserve or it or not doesn't change whether the market will support it. Some people making 10 dollars an hour might get a raise to 13, but some might just get fired. So law decides that someone whose labor is only worth 10 dollars to the market is better off banned from working.

I'm willing to entertain other ideas. If the living wage is X and the minimum wage is Y < X, then someone has to make up the difference. Two methods to make up the gap that make sense to me are taxation and redistribution, or raising the minimum wage. How do you suggest to make up the gap?

I edited my original comment: universal basic income + no minimum wage or other forms of welfare (most of which offer negative incentives, such as TANF, unemployment benefits, mandatory social security, etc.). UBI should get you a very base level of livability (not enough to live in an expensive metropolis like SF/NYC), but not enough that most people won't want to work to improve their standard of living.

Minimum wage and other forms of welfare just don't make sense compared to a simple, clean, basic income.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#224
post #96

Earlier quoted context omitted.

When a person is desperate, 'voluntary' starts to lose all meaning. If you are dead broke and half starved and I offered you a take it or leave it offer to work carrying rocks for $2 an hour so you can get a sandwich and you agree, is that really voluntary? I do agree with you about teenagers and other people that don't need the money in order to live. For dependents and people that agree not to get public assistance…

Yes, it's much better to prevent any employment opportunity for that person. Situation A: I can choose between no employment (bad), and exploitative employment (slightly less bad). Situation B: With the benevolent intention of a minimum wage legislated into existence, I can "choose" no employment (same bad as before). You don't make someone worse off by increasing the number of options. You don't make people better o…

[deleted]

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#225
post #135

Earlier quoted context omitted.

This line of thinking leads to allowing people to sell themselves into slavery. Do we need to solve homelessness? Absolutely. We do not do this by propping up businesses and properties that rely on below livable wages. I can buy some level of slippery slope at play here. But, by and large, this frames it in a way that allows sub-livable wages. So, you can think my "side" is framing this in a way to justify it. This d…

What's wrong with allowing people to sell themselves into what you call slavery? Assuming it's a bad decision (makes their lives worse off), the problem is that they make a bad decision. In that case, it might make sense to create a regulation that forbids people making bad decisions. If it's a good decision, there's no point forbidding it.

Good for who though? If you're the employer then people selling themselves to you for below living wage (slavery) is absolutely fantastic, if you're the person selling yourself then it's not so great! It's a matter of perspective.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#227

Earlier quoted context omitted.

It's more like trying to save a sinking ship by telling the crew on the ship they can only use high-quality licensed ship repair equipment, instead patching the holes with whatever they can improvise. Yes, it would be better if they used high quality hull repair equipment, but sometimes it's not available and insisting that's the only thing you're allowed to use while the ship is sinking and people are struggling to…

Yeah, fair. People need help now. But how long can we continue kicking this problem down the road. We need to tie this thing to inflation or just admit that it's not the solution.

It was never the solution. It's actively making things worse for most of the people it was claimed to be intended to help. Tying it to inflation is just going to make displacement of low skilled workers increase automatically every year.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#228
post #77

Earlier quoted context omitted.

Part of my point is that some people very loudly point out the flaws of minimum wages - and they have some valid arguments - but them seem to hem and haw a lot about finding better solutions for that subset of people who are in real trouble.

And my point is that, it is fine to want to help people, but doing something that clearly hurts them is not the right way to do that. Maybe those better solutions have the same dynamics. Economics is all about trade-offs; many of them are hard to evaluate and some of them are not worth making. Minimum Wage increases to $15/hour seem more and more to be not worth making.

I think whether this hurts people, at least in the long run, depends, though.

Taking a job which provides no on-the-job training, and takes no skill keeps someone where they are. Because they aren't learning anything they are stuck doing jobs at this level forever.

If a person is prodded into learning a skill in order to reach the bottom($15/hour) rung, and then at the $15/hour level, the person is doing skilled work, they will be defacto receiving on-the-job training, since they are providing some skill.

As long as there is a big enough social safety net, and access to resources like the library and the internet, unskilled and unemployed people will at least have the opportunity and a motive to learn.

It's really too early to tell whether a higher minimum wage will result in a more skilled, educated populous in the long run. But it does fit the data that most (all?) first world countries have a relatively high minimum wage and social safety net. It could be argued that a high minimum wage is partly how they got there.

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#229
post #158

Earlier quoted context omitted.

Or, if no company is willing to pay a living wage to accomplish a task, does it need to be done?

Perhaps not, or more likely it doesn't need to be done in the jurisdiction of the forced minimum. For fully localized jobs that cannot move (ex: waiter) that means they probably won't exist at all and the business will close down.

Or will the prices just increase to account for the higher wage? Isn't that easier?

Re: A ‘very credible’ new study on Seattle’s $15 minimum wage has bad news

#230

Earlier quoted context omitted.

Or, if no company is willing to pay a living wage to accomplish a task, does it need to be done?

Companies will pay at most the value that a worker creates. It makes no sense to pay minimum wage, if the worker creates less value than that.

And what is the value created by labor? Let's split the discussion into service jobs and non-service jobs, as we all know most of these minimum wage positions are service jobs. So, what is the value of one hour of service labor? Whatever someone will pay for it. Which is set by a market of service providers all decreasing their prices to the lowest they can tolerate. Because if you can undercut a competitor, the free market says you will win the business. Which, for the people who make minimum wage, is how little a wage they will accept. Ok, what sets the floor for what people will tolerate to be paid? When looking at the minimum wage sector of the population, what is their bargaining power? What is the bargaining power of the employers? Is it a free market? What other options do the workers have? Is it a voluntary transaction if the alternative is starvation and homelessness?
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