Job loss predictions over rising minimum wages haven't come true
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Re: Job loss predictions over rising minimum wages haven't come true
#2Axios cherry picked the Bureau of Labor Statistics data for the 12 states that confirm the writer's bias. They should have analyzed all states with low minimum wages vs high minimum wages for the overall picture. Reports are out there showing while many of the minimum wage earners who have not lost jobs from the hourly increase are reporting weekly scheduled hours being cut back across the board.
Re: Job loss predictions over rising minimum wages haven't come true
#3Axios cherry picked the Bureau of Labor Statistics data for the 12 states that confirm the writer's bias. They should have analyzed all states with low minimum wages vs high minimum wages for the overall picture. Reports are out there showing while many of the minimum wage earners who have not lost jobs from the hourly increase are reporting weekly scheduled hours being cut back across the board.
This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society. Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of improving operating efficiency.
Re: Job loss predictions over rising minimum wages haven't come true
#4Axios cherry picked the Bureau of Labor Statistics data for the 12 states that confirm the writer's bias. They should have analyzed all states with low minimum wages vs high minimum wages for the overall picture. Reports are out there showing while many of the minimum wage earners who have not lost jobs from the hourly increase are reporting weekly scheduled hours being cut back across the board.
This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society. Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of improving operating efficiency.
> This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society
What does the minimum wage have to do with contribution to society?
> Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of improving operating efficiency.
Some businesses cannot be profitable and therefore will not exist at certain minimum wages, though. The US minimum wage is a big part of why manufacturing jobs have moved out of the US, for instance.
That might be a trade we're willing to make. There may be good reasons to make it, but it is not without cost.
Re: Job loss predictions over rising minimum wages haven't come true
#5The inverted funnel plot of Doucouliagos and Stanley is especially useful once discussions about elasticity at the low end of the labor market reach the "you're biased -- no you're biased!" stage:
https://www.ctdol.state.ct.us/lweab/Doucougliagos%20&%20Stan...
Re: Job loss predictions over rising minimum wages haven't come true
#6It seems that a lot of economics as it’s used for political decisions is way oversimplified to the point of being useless or just plain wrong. The minimum wage issue is an example where reality is much more subtle and complex than what a lot of economists in the news say. Same for tax cuts for upper incomes that were supposed to spur investments in new technologies but seem to have done more to drive up asset prices. Or the argument that lower health care prices will drive up utilization.
I am sure there are a lot of economists that do great work but economics as it’s used in public discourse is just abysmal.
Re: Job loss predictions over rising minimum wages haven't come true
#7Earlier quoted context omitted.
This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society. Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of improving operating efficiency.
> This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society What does the minimum wage have to do with contribution to society? > Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of im…
The markup on most products is such that US businesses could easily manufacture their products in the US at current minimum wages and still handily profit.
They simply choose not to, because that means they have to pay their executives and owners less money and no executive wants to forego their country club membership, each of which is equal to the salary and benefits of 3 or more line workers, or their annual bonus, which is equal to the salary benefits of between 5 and 20 line workers. Or hell, the excess of what their salary is over the value they actually provide to the company (usually just a lit bit over an individual line workers' contribution).
Re: Job loss predictions over rising minimum wages haven't come true
#8Axios cherry picked the Bureau of Labor Statistics data for the 12 states that confirm the writer's bias. They should have analyzed all states with low minimum wages vs high minimum wages for the overall picture. Reports are out there showing while many of the minimum wage earners who have not lost jobs from the hourly increase are reporting weekly scheduled hours being cut back across the board.
I've read reports of Target, and similar companies, cutting back hours of many employees. I take such reports as anecdotal, but I didn't catch them talking about this in the article at all.
Re: Job loss predictions over rising minimum wages haven't come true
#9Minimum wage isn't just flat for a decade, it's not being adjusted for inflation. This means minimum wage workers have been getting a pay cut over time.
The debate isn't just whether we should raise minimum wage, it's whether we should be cutting it. By allowing it to remain stagnant we're making the default decision to cut.
Re: Job loss predictions over rising minimum wages haven't come true
#10Axios cherry picked the Bureau of Labor Statistics data for the 12 states that confirm the writer's bias. They should have analyzed all states with low minimum wages vs high minimum wages for the overall picture. Reports are out there showing while many of the minimum wage earners who have not lost jobs from the hourly increase are reporting weekly scheduled hours being cut back across the board.
This maybe leads to the question of why we should favor any business to continue operating in a space that may be a net negative contribution to our society. Without enforcing minimum wage, and perhaps least minimum full time to part time employment ratios, we face businesses competing on prices by undercutting labor instead of other avenues of improving operating efficiency.
On the contrary, many of the lowest-paid jobs are lowest-paid because they're non-profits, volunteer organizations, or other organizations that provide some social benefit. Raising the minimum wage prevents these organizations from doing as much good for society.