Boss
Take a Memo:
I agree with near everything you've said on 'paper' or in this case, my computer screen...it's a solid theory...again, on paper...and is the positive aspect of what it could be like, without a minimum wage...but i'm a realist, and a daily witness of humans and their nature, and see a drive to lower wages instead of raising them if without the minimum wage....do you believe if we never gave minimum wage a raise, that we would not have inflation or do you believe inflation will take place, regardless of what we pay the minimum wage worker?so, you support bringing the minimum wage up to $15 and you are going to send letters to your republican reps to support it? Is that your point?It also won't do anything to help anyone. For 82 years, since the day FDR signed the MW into law, the Democrats have promised this would raise the working poor up to a decent living wage... never has, never will. It's a carrot on a stick.
"In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By "business" I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls;and by living wages I mean more than a bare subsistence level-I mean the wages of decent living."~ FDR 1933
No, because it doesn't work. Seems like 82 years of something not working would be enough.
If you raise the MW to $15, virtually all entry-level jobs will decline. So the young person out there trying to get into the workforce and gain experience will have less opportunity. The raise also creates a ripple effect through the mid-level pay scales as the all have to receive comparable adjustments to their pay. When it's all said and done, the increased labor costs are passed on to the consumer in the form of higher prices. And yes, they also increase production per worker, scale back operations, lay off workers and cut corners on quality. The business objective will be to not let the extra cost effect the bottom line profit and it usually never does.
So what you do (and what you've been doing for 82 years) is make yourself feel good for a little bit. People get a little bigger paycheck and you think that relief has come. Only, the people quickly find a way to improve their lifestyle with the extra money and soon they are in the same boat again. Only now, the prices have risen and things are even worse.
If we follow your insanity to it's ultimate outcome, it becomes like health care and education... so overpriced due to your stupid boneheaded policies and massive regulations that no one can afford it... THEN you start squealing that the government needs to give it to your for FREE!
I understand what you are saying on the ripple effect, others that worked 10 years to get to the $15 are going to expect a raise too....
But honestly, I believe part of the reason that the skilled worker and experience guy is only making the $15 is because minimum wage has been artificially been kept low... if minimum wages had been going up with inflation all along, then that next layer up or two or three of skilled workers, would have been paid more...
AND THAT means, this could also be helping the middle class... get out of this rut of stagnate or even lower wages....
As long as you hold down those making the least, the pay of everyone else seems more acceptable, even though those people are losing ground on what they actually make in income and what they can buy with it, like a college education.... when I was young, working minimum wage through the summer full time and part time all winter, with just a little bit of help from the parents, could pay for 1 year of college at a State College, without having to take out a loan....
Why should a child today doing a minimum wage job not be able to purchase what a kid making minimum could 30 years ago? And it is not just college, but they should be able to buy the same amount of food as you could on that min wage or same amount of car insurance as you could or gasoline that you could on minimum wage years ago?
it should go up with inflation, like other wages.
I think the MW is one of the worst ideas we've ever had. I'm sure some might argue there have been other worse ideas and maybe so, this is just my opinion. I think the MW has served to baseline labor costs across the board for all capitalists and they love it. The individual has been removed from his freedom to negotiate because now there is an artificial and arbitrary rate the company can go by.
An example of what I am saying: Let's say there is a chain convenience store like 7-11 operating a location on St. Simon's Island in Georgia. It's a tourist area with a few very expensive homes and an above-average cost of living (on the actual island). Now, the convenience store needs a cashier, but the company policy is, all cashiers start at minimum wage. Well, you can't really live on St. Simon Island and work for minimum wage. In an open free market, someone would be able to negotiate a special higher wage to work there because of location and cost of living, but as it stands, they can't because... the minimum wage is what it is and that's 7-11s policy. They hire someone at MW but they don't live on the Island, so they have to spend more money to drive there and eat lunch there, etc. So, effectively, they're making LESS than MW but doing the same work as others who make MW.
Or let's say we're talking about a job that's not MW, but on up the ladder... let's say Tech Support... Pay is $15 an hour based on current MW. It doesn't matter that you are super bright and the best technician they've ever had, you still make $15 like all the other schlubs. You can't negotiate a higher wage because the wage is set according to the MW and that's just how they do it. Of course, without a MW, you could go to your boss and plead your case and you'd probably be able to negotiate a much more deserved salary.
You see... the MW works two ways. The capitalist uses it to avoid negotiations. It's a baseline for them on labor costs. They can put off raises or deny request for pay increases because hey... that MW thing. I understand that it was wonderful and great back during the depression when people were paid a nickel a bushel to pick oranges or kids were trapped in sweat shops for slave wages... understood... we had a serious problem and it needed to be corrected. I just think we did the wrong thing by establishing a national MW. It has effectively served as a ball and chain to our freedom of negotiation for the true value of our labor.
Businesses want to lower their labors costs, pay less....that's what this is about....
also, minimum wagers have no experience in negotiating for a higher salary and most people with 20 years in the workforce don't have experience in negotiating for a higher salary, they take the raises they get.... big guns have recruiters negotiate their salary packages.
a darn salary negotiation class should be mandatory to take in high school!
And it's so much more complicated than simply the wage, if an employer pays them less, then us tax payers pay more in safety nets for them...
if there are an excess of low wage workers due to illegal immigrants, then wages stay lower.... so many things are intertwined together with this M/W issue...no fault of the American citizen m/w worker but it still lowers their success in negotiating for higher wages if they have the guts to try.
Note! employers can hire a teen for $4+ something an hour for like 3 months, then they have to bring them up to an adult's minimum wage...or let them go if they can't cut it....
I think there are a lot of things we can do to improve wages in America without messing with the MW. I would really love to see us make the MW obsolete. Wouldn't that be nice? No one worries about it because everyone makes more already. So keep it low, where it is now, and grow new jobs to the point where demand for labor grows. That fixes the problem because that IS the problem.
Even back 82 years ago, the problem wasn't that wages were too low and we needed government to step in.. that's what happened, but the problem was no demand for labor. We had an unusual over-supply of labor and capitalists were exploiting that. If you increase the demand for labor the labor rates go up... that's free market capitalism, baby. It's how it works.
There is one more aspect to keeping wages low and Trump sort of touched on this. You need a mechanism to drive motivation in people. As long as all your needs are being met and you can exist comfortably in your present state, there is nothing motivating you to do better. It is the struggle of having to make it that drives our ambition and motivates us to improve our condition and we need that. Without it, we become complacent and content. We settle for what we've got and don't try any harder.