Why Is The Latino Poverty Rate So High?

[EdwardBaiamonte]

No shit, everytime we raise it[mimimum wage] in excess of inflation (increasing spending / demand) unemployment drops.

so then the unemployment problem that has plagued us forever is solved. All we have to do is raise the minimum wage?? Who knew it could be so easy?

What is the theory; how does raising wages, production costs and so prices increase demand and cause growth?? Please tell us or admit as a liberal you lack the IQ to do so. Thanks

 

[Koios]

No shit, everytime we raise it[mimimum wage] in excess of inflation (increasing spending / demand) unemployment drops.

so then the unemployment problem that has plagued us forever is solved. All we have to do is raise the minimum wage?? Who knew it could be so easy?

What is the theory; how does raising wages, production costs and so prices increase demand and cause growth?? Please tell us or admit as a liberal you lack the IQ to do so. Thanks

Me. Also, Obama, prior to taking office. He said in 2009 that he'd work to raise it above $11/hour the following year (2010). But it got lost in the healthcare debate, and also it's poorly understood (mom's fearing Happy Meals being priced out of reach, etc., which is simply wrong, and not even close to right.). So politically, it's a fucking nightmare. And thus expensive ($10s of Billions) bandaid solutions proved more popular, i.e. payroll tax deductions; and all the while middle class takehome pay diminished, as even Romney pointed out (about $4000 / household).

So yeah; until we fix wages, the slow climb upward, will be both slow, and expensive as all get out.

Meanwhile, as to your question, demand drives hiring. Period. And more middle class income gets spent, skyrocketing demand. Simple as that. And any who don't get it, probably never will. So for me, this is just killing time.

What's in it for you?

 

[EdwardBaiamonte]

No shit, everytime we raise it[mimimum wage] in excess of inflation (increasing spending / demand) unemployment drops.

so then the unemployment problem that has plagued us forever is solved. All we have to do is raise the minimum wage?? Who knew it could be so easy?

What is the theory; how does raising wages, production costs and so prices increase demand and cause growth?? Please tell us or admit as a liberal you lack the IQ to do so. Thanks

Me. Also, Obama, prior to taking office. He said in 2009 that he'd work to raise it above $11/hour the following year (2010). But it got lost in the healthcare debate, and also it's poorly understood (mom's fearing Happy Meals being priced out of reach, etc., which is simply wrong, and not even close to right.). So politically, it's a fucking nightmare. And thus expensive ($10s of Billions) bandaid solutions proved more popular, i.e. payroll tax deductions; and all the while middle class takehome pay diminished, as even Romney pointed out (about $4000 / household).

So yeah; until we fix wages, the slow climb upward, will be both slow, and expensive as all get out.

Meanwhile, as to your question, demand drives hiring. Period. And more middle class income gets spent, skyrocketing demand. Simple as that. And any who don't get it, probably never will. So for me, this is just killing time.

What's in it for you?

Once again, what is the theory; how does raising wages with a minimum wage not increase production costs and prices and thus kill demand.

Please tell us or admit as a liberal you lack the IQ to do so.

Why not raise everyone's wage to $100/hour and really get this economy out of what Krugman describes as a depression.

 

[EdwardBaiamonte]

demand drives hiring.

how does increased minimum wages create demand and hiring? When wages go up fewer people are hired and so demand goes down.
Welcome to Econ 101 class one day one.

Now you can see why we are positive that liberalism is based on pure ignorance.

 

[AmyNation]

Raising min wage has little to no effect on the middle class. Someone earning min. wage is not middle class.

 

[Koios]

demand drives hiring.

how does increased minimum wages create demand and hiring? When wages go up fewer people are hired and so demand goes down.
Welcome to Econ 101 class one day one.

Now you can see why we are positive that liberalism is based on pure ignorance.

Already answered; read back.

 

[Koios]

Raising min wage has little to no effect on the middle class. Someone earning min. wage is not middle class.

True, certainly, of our current minimum wage, which is so low that even the poorest-paying employers tend to start at slightly above it. And yet, we still have something that simply should not exist in America: working poor; people with jobs, in America, and they're poor.

However, by raising it back to a 1970s level, which was at about $12 in 2010 Dollars, and things happen:

1. People barely surviving on $10 - $13 grand a year are raised out of poverty, since their wages will now be $21 - $23 grand a year. Thus a couple, both making minimum wage, now begin nearing the median household income, and can consume at a level that is beneficial to local businesses, spending about $12,000 more into their community, at grocery and clothing stores, electronics outlets, making a car payment on time, and even paying for some night school, etc.

2. People in the delta (>$7.25 - $11.99 / hr) are not only raised up, but now in a position where their employer is pressed to pay them more than MW, to retain the worker, since now he/she can get $12 / hr anywhere in town.

3. People making $14 - $16 in superivisory rolls are now just a couple bucks above MW, and will be less satisfied than they are now, making double the FMW. Upward pressure on those wages, too, will result.

But the real economic benefit is this:

Unemployment drops, and worker confidence returns. Competition for workers, especially more skilled / capable / talented / good looking / and so on, increases. Higher starting salaries are offered. Top talent in companies becomes more confident and expects more frequent raises. Employers, who've been in a buyer's market most of the last 1/3rd century, now have a seller's market, for workers. Wages, instead of trending downward, start going up ... and with it ...

The sale of products goes up. A guy/gal with a truck and mower can actually find folks willing to pay for lawn care. A guy/gal with an idea for a cafe, will have many more customers, and folks spending at higher levels when they come in. Small businesses, and especially start-ups, have far rosier prospects.

It's fucking morning again, in America, to paraphrase Reagan's '84 campaign slogan ... only this time, it's real, and not a credit card recovery. People actually making and spending more, the life-blood of the US consumer economy.

 

[AmyNation]

You want to more than double the min wage?!

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...

Wow. Thats one of the worst ideas I've ever heard. Seriously.

That would sink the economy, it would take a decade to recover.

 

[Koios]

You want to more than double the min wage?!

...


...

Wow. Thats one of the worst ideas I've ever heard. Seriously.

That would sink the economy, it would take a decade to recover.

No. Only raise it 80%, which we've done previously, lowering significantly unemployment, and paving the way to our most prosperous period, in America.

Imagine that. Actual hard facts, which contradict, unambiguously, right-wing dogma. Knock me over with a feather.

 

[AmyNation]

You.....

You have given no consideration to the cost to business'. You are talking about doubling what for many businesses is the largest expenditure. Not only would that cause a massive immediate spike in unemployment, it would also cause a massive hike in prices.

In the end, the min wage person would have no more extra money than they did before, because prices would rise accordingly.

 

[Koios]

You.....

You have given no consideration to the cost to business'. You are talking about doubling what for many businesses is the largest expenditure. Not only would that cause a massive immediate spike in unemployment, it would also cause a massive hike in prices.

In the end, the min wage person would have no more extra money than they did before, because prices would rise accordingly.

You're right. So let me encapsulate it for you: good wages only hurt companies with more employees than customers. They have more customers, and customers able to spend at higher levels. Thus only companies whose business models depend on poverty wages will fail; and hiring at other companies, who will be forced to hire more workers to meet the increased demand, will eclipse, by orders of magnitude, the losses due to poorly conceived business models that fail under a system with a decent base-wage. But the owners of those marginal businesses, which fail, will have far greater employment prospects, themselves. So there's that.

In short, the right-wing postulate is retarded on its face. It assumes that we'll buy the same amount of products with the more money our workers make, which is ignorant to extent bordering on retarded. Of course more will be bought, driving the need for workers to make, transport and sell the more stuff.

 

[AmyNation]

Higher min wage does not equal higher demand. Someone making min wage is not suddenly going to double the amount of toliet paper they buy because they got a huge raise. They won't suddenly double the amount of milk they drink, or water they use.

Your idea would crush small businesses. It would totally push them out and leave only large corporations who can shift the burden better.

 

[Koios]

Higher min wage does not equal higher demand. Someone making min wage is not suddenly going to double the amount of toliet paper they buy because they got a huge raise. They won't suddenly double the amount of milk they drink, or water they use.

Your idea would crush small businesses. It would totally push them out and leave only large corporations who can shift the burden better.

You're wrong. Very, very, fucking wrong.

Our economy is not a static entity where each of us take of it relative to our ability. That's just the perception, or maybe the slogan we like to attribute to it and ourselves. But it simply wrong.

It's a highly connected and dynamic system, in which, we cannot fuck over a large segment of our people without also fucking over ourselves (sorry to disappoint)

Just for example: a marketing exec in the 1990s, when everyone was cutting a fat hog, was no genius then. Nor was he/she an idiot the day the market tanked, circa 2008/09. The environment changed, and thus the same effort was vastly less-rewarded.

Improve the environment, and your effort will be better-rewarded. Fact. Can the fear, and grasp that when Americans are doing better, you'll be better-off too.

 

[AmyNation]

How does having more money in your pocket make you double the amount of toliet paper you need?

You are assuming direct correlation between money in the pocket, and use. It's not true. Especially when you factor in the skyrocketing price of things. When you double the cost to create an item, you effect the cost to sell the item. It would be immediate, and detrimental to the economy. And when we were finally back up on our feet again, that $3 pack of toliet paper will now cost $8.

 

[Koios]

How does having more money in your pocket make you double the amount of toliet paper you need?

You are assuming direct correlation between money in the pocket, and use. It's not true. Especially when you factor in the skyrocketing price of things. When you double the cost to create an item, you effect the cost to sell the item. It would be immediate, and detrimental to the economy. And when we were finally back up on our feet again, that $3 pack of toliet paper will now cost $8.

Yes, Amy, that would be one of the upsides of no longer being poor. You'll be able to purchase more than simply basic necessities. You can live large, and get some air-freshener to go with the TP, or maybe candles. Also the thread-bare panties you pulled up after, previously, can be something more flattering, comfortable, etc.

 

[Avorysuds]

the same reason other Americans are having a shitty time.

Bush and the republicans crashed the world economy.

Translation = Because Obama has failed the last 4 years

See, Bush didn’t crash the world economy, Clinton did… Because everything good that happens is because of the sitting President while everything bad that happens because of the Republican President that held office many years before the Democrat won the election to hold that seat.

Or wait… Maybe it just goes Republican always bad, Democrat always good with TM, because it’s party over country for her.

 

[Katzndogz]

The latino poverty rate is high, and not only high for recent immigrants, but high for generation after generation. The reason it is high, is pretty much the same one it is for American blacks, a strong bias against education. Although not for the same reasons. Among non-Cuban latinos, if your father was a floor mopper you should want to be a floor mopper too. Latino culture is largely the culture of hard work with no advancement. They just want to be paid more for doing the same thing.

 

[Koios]

How does having more money in your pocket make you double the amount of toliet paper you need?

You are assuming direct correlation between money in the pocket, and use. It's not true. Especially when you factor in the skyrocketing price of things. When you double the cost to create an item, you effect the cost to sell the item. It would be immediate, and detrimental to the economy. And when we were finally back up on our feet again, that $3 pack of toliet paper will now cost $8.

Now then, Amy, while we've made it apparent that not only have you no grasp of macro-economics, micro-economics is a smidge over your head, as well.

So let's deal with your fear: if service workers make decent pay, the price you'll pay for things will go up. Your life will thus diminish. Fuck 'em if they're poor; I need to buy my kids Happy Meals, and fear I won't be able to.

But fear not. Some things happen when more is bought by newly-empowered (economically) workers: economies of scale* and increased competition** that both have downward pressure on pricing.

*Example: flat screen HD TVs, once a luxury item, I had to buy from Magnolia Hi-Fi for $11 grand and pay another $600 for delivery and install. But now many are made, and I got a larger one, with Wi-fi, Intel Atom processor and remote keyboard, delivered to my front door, for $850.

**Example: McDonalds is in town, but now more folks are buying Happy Meal-like products. So Jack In The Box sells a franchise, maybe Wendy's, too. So the local McDonalds who previously didn't feel it needed to participate in the Dollar Menu program in a big way, is now all over it. Pricing becomes an issue, since more competition is in town, and more affordable incentives are offered.

 

[AmyNation]

Lmao!

I have far more of a grasp on economics than you do. You can pretend that doubling the min wage will solve all our problems, that's find with me. I'm just grateful that no one in congress, with a degree in economics, or business, or with a lick of common sense agrees with you.

 

[Koios]

Lmao!

I have far more of a grasp on economics than you do. You can pretend that doubling the min wage will solve all our problems, that's find with me. I'm just grateful that no one in congress, with a degree in economics, or business, or with a lick of common sense agrees with you.

Then why hide it? Please, do add to the conversation, and fear not using econ-terminology, since I'll know of which you're speaking.

Great news and I'm so looking forward to an actual conversation on economics.