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House passes bill to hike the federal minimum wage to $15 per hour

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Re: House passes bill to hike the federal minimum wage to $15 per hour

#41
post #12

Earlier quoted context omitted.

Bloomberg ran a nice piece on what it's like to own a McDonald's franchise here [1]. The raw numbers sound nice - $2.7 million gross, $1.8 million in gross profit. But after your various expenses come into play, the honeymoon ends - you end up taking home about $150k for a mountain of work that's required to keep a franchise running in good shape. You're buying a job. The reason this matters is because those numbers…

Raise prices then. Wages are usually said to be a lesser part of the cost of a restaurant. Raise prices 10%. The gross goes up $270k, give yourself 20k more, give your employees 250k more. They get a 50% raise, that will make people want to work for you. My hamburger costs $3.30 instead of $3. In Seattle the restaurant industry said it was going to be all doom and gloom when they raised wages incrementally to $15/hou…

You can't ignore economics here. When you raise prices, sales tend to decrease. This sounds peculiar because it seems difficult to imagine that somebody would be "Okay, I will pay $3 for my burger, but $3.30? Oh no way." But of course if this did not happen then you'd see an annual 10% inflation on just about everything. This is compounded further because people buying cheap food tend to be buying it precisely because it's cheap, so they're generally going to be more responsive to price changes than the general population. There are also various cost increases that go along with higher wages such as increased payroll taxes and higher supply side costs as your suppliers also see their labor costs increase.

I think the biggest issue here is determining results. Did the wage increase work, or not? The problem is that you can create compelling hindsight arguments showing either argument. And indeed there are now numerous studies that all show different results. None are lying, they're just prioritizing and organizing data in different ways. The problem is this introduces bias. If you want to show it was a good idea, you can. If you want to show it was a bad idea, you can.

More needs to be done in terms of formal predictive hypotheses published ahead of time, rather than compiling data after the fact. In other words invite a large balance of both critics and proponents of minimum wage increases. Have these individuals come to a supermajority consensus on exactly what the goals would be in increasing the minimum wage and how the success or failure to meet these goals could be measured. And make the entire process completely visible and transparent. This, actually putting ideas to critical and impartial tests, would also hamstring demagoguery or accusations of such.

Re: House passes bill to hike the federal minimum wage to $15 per hour

#42

How might a $15 minimum wage might affect the current (engineering) internship system? Almost every non-software engineer I know earned $15, or marginally more, during undergraduate for internships related to their field. If minimum wage jobs are price-competitive with an internship, what is the impact? Will large employers of engineers raise internship pay? Will they continue to hire as many interns?

$15/hour would be unlikely to have any impact on engineering internship wages, it's far too low. $15/hr is $31k per annum. 20 years ago we paid interns a pro rated wage higher than that! Today we pay our interns a pro-rated wage over 80k at the startup where I work. Are there any engineering interns paid such low wages in the western world? Double or trip $15 and you might have some impact.

>Are there any engineering interns paid such low wages in the western world?

Yes, absolutely: your experience is certainly not everyone's.

The 80k salary for an intern sounds nuts to me...in the Netherlands, interns in my engineering field usually make less than minimum wage. Usually it's a few hundred euros per month.

Most full-time, experienced engineers in the entire country earn a whole lot less than $80k.

Re: House passes bill to hike the federal minimum wage to $15 per hour

#43
post #34

Earlier quoted context omitted.

That's much closer than I would have guessed. What poll is this?

Was just referenced in a Ditch Mitch PAC marketing email that went out an hour ago. I've contacted their team to ask for a citation and will report back with it when I receive it. EDIT @ 1563753486: http://kentuckytoday.com/stories/mcgrath-comes-out-firing-in... “Change Research conducted a poll of 1,629 likely 2020 voters in Kentucky from June 15-16 and found that retired Marine Amy McGrath is already essentially ti…

McConnell was approximately as unpopular in Kentucky leading into the 2014 election, when he trounced Alison Lundergan Grimes (KY's Secretary of State) by 16 points.

Re: House passes bill to hike the federal minimum wage to $15 per hour

#44
post #43

Earlier quoted context omitted.

Was just referenced in a Ditch Mitch PAC marketing email that went out an hour ago. I've contacted their team to ask for a citation and will report back with it when I receive it. EDIT @ 1563753486: http://kentuckytoday.com/stories/mcgrath-comes-out-firing-in... “Change Research conducted a poll of 1,629 likely 2020 voters in Kentucky from June 15-16 and found that retired Marine Amy McGrath is already essentially ti…

McConnell was approximately as unpopular in Kentucky leading into the 2014 election, when he trounced Alison Lundergan Grimes (KY's Secretary of State) by 16 points.

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