Raising Floor for Minimum Wage Pushes Economy into the Unknown
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Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#2I don't believe that raising the minimum wage will trigger businesses to cut jobs significantly. They will probably pass the higher cost onto the consumer. Ultimately, it's a method of wealth redistribution, which is sorely needed in our economy.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#3I don't believe that raising the minimum wage will trigger businesses to cut jobs significantly. They will probably pass the higher cost onto the consumer. Ultimately, it's a method of wealth redistribution, which is sorely needed in our economy.
The problem with this type of wealth redistribution is that the poor are often consumers of the same products and services served by min wage jobs.
This is one of many reasons I support unconditional basic income. It allows labor to be accurately priced in the market, without raising cost to the poor.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#4I don't believe that raising the minimum wage will trigger businesses to cut jobs significantly. They will probably pass the higher cost onto the consumer. Ultimately, it's a method of wealth redistribution, which is sorely needed in our economy.
The problem with this type of wealth redistribution is that the poor are often consumers of the same products and services served by min wage jobs. This is one of many reasons I support unconditional basic income. It allows labor to be accurately priced in the market, without raising cost to the poor.
I'd agree, but raising the minimum wage is a relatively good alternative to doing nothin given unconditional basic income is merely a political dream in most jurisdictions. The US has such a low minimum wage given the wealth within the economy it's hard to see a rise having much of an impact.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#5Earlier quoted context omitted.
The problem with this type of wealth redistribution is that the poor are often consumers of the same products and services served by min wage jobs. This is one of many reasons I support unconditional basic income. It allows labor to be accurately priced in the market, without raising cost to the poor.
I'd agree, but raising the minimum wage is a relatively good alternative to doing nothin given unconditional basic income is merely a political dream in most jurisdictions. The US has such a low minimum wage given the wealth within the economy it's hard to see a rise having much of an impact.
An EITC would more effectively incentivize the poor to work than unconditional basic income.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#6I don't believe that raising the minimum wage will trigger businesses to cut jobs significantly. They will probably pass the higher cost onto the consumer. Ultimately, it's a method of wealth redistribution, which is sorely needed in our economy.
The problem with this type of wealth redistribution is that the poor are often consumers of the same products and services served by min wage jobs. This is one of many reasons I support unconditional basic income. It allows labor to be accurately priced in the market, without raising cost to the poor.
> The problem with this type of wealth redistribution is that the poor are often consumers of the same products and services served by min wage jobs. This is one of many reasons I support unconditional basic income. It allows labor to be accurately priced in the market, without raising cost to the poor.
Yes but labor is less than half of the cost for everything. One of the most labor intensive is food [growing -> market -> consumer] and its still not even 50%.
https://www.fmi.org/docs/facts-figures/marketingcosts.pdf?sf... http://www.ers.usda.gov/media/307995/aer780d_1_.pdf
Its 38.5%. The impacts is similar on other areas where the minimum wage laborer is also the minimum wage consumer.
The pay increase still flows ~60% to the people on minimum wage and is the most effective method that is politically feasible. [e.g. Backed by a large portion of a major political party]
Ideally, raising the standard deduction to the poverty level for 1 person as well would be ideal to spread things out more. Of course, you'd need to raise the marginal tax rates [e.g. Money after $11,700/year would be taxed at a higher rate] to do that since it'll cost hundreds of billions otherwise :p [e.g. $6,300 -> $11,700]
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#7Earlier quoted context omitted.
I'd agree, but raising the minimum wage is a relatively good alternative to doing nothin given unconditional basic income is merely a political dream in most jurisdictions. The US has such a low minimum wage given the wealth within the economy it's hard to see a rise having much of an impact.
An EITC would more effectively incentivize the poor to work than unconditional basic income.
Assuming it doesn't taper, yes.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#8IMO one of the interesting ways to think about: "Overall, how does our economy value human-time versus material-goods"?
Even if the cost is passed on to the consumer (many of whom will, in turn, will have more to spend) it represents a shift in how we (implicitly, through costs) balance "1x Acme Appliance" versus "1x hr child care", etc.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#9Landlords will benefit, short term.
I suspect that people will move to areas offering higher minimum wages, which will drive up rental housing costs in those areas.
Re: Raising Floor for Minimum Wage Pushes Economy into the Unknown
#10Earlier quoted context omitted.
I'd agree, but raising the minimum wage is a relatively good alternative to doing nothin given unconditional basic income is merely a political dream in most jurisdictions. The US has such a low minimum wage given the wealth within the economy it's hard to see a rise having much of an impact.
An EITC would more effectively incentivize the poor to work than unconditional basic income.
1) An EITC fails to realize the efficiencies of consolidating or eliminating other forms of aid that basic income could.
2) The incentive to work under basic income is having more than barely enough money to scrape by. Wages will go up until this is a sufficient incentive. My money's on wages not having to rise much at all, if any, to achieve this. I wouldn't even be surprised if average compensation dropped a bit under basic income.
3) An EITC doesn't support entrepreneurship and small businesses the way basic income could.