Posts Tagged ‘minimum wage increase’

Why the minimum wage should be $15 an hour

April 15, 2015

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The key economic problem for the USA is that American wages are too low.

American consumer demand is the engine that has driven not only the U.S. economy, but much of the world economy, for the past 60 years.

If people don’t have enough money to buy things, there is no economic incentive to make things.

If there is no economic incentive to make things, the world’s wealth does not increase relative to the population.

If there is no economic incentive to make things, rich people and institutions invest in debt, which in the long run makes the problem worse.

If there is no economic incentive to make things, unemployment increases.

There is an economic theory that says that the way to cure unemployment is to allow wages.

It is true that, in a generally prosperous economy, an individual employer might hire more workers if they were available at a lower wage.  But that wouldn’t work for the economy as a whole because workers are customers.  Without mass prosperity, economic activity is devoted to serving the desires of a tiny economic elite.

One way to wage raises is to raise the minimum wage.  This is good for all working people, not just those earning minimum wage or slightly above.  It pushes up the general wage level and increases the market for goods and services.

And aside from all these other considerations, do we really want to live in a rich nation in which millions of hard-working people are poor?

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Can fast food afford a $15 minimum wage?

April 15, 2015

Answer to the question: Yes.

An individual fast food restaurant manager might not be able to pay $15 an hour minimum wage and still compete with other restaurants paying $7.25 an hour.  But there would be no competitive disadvantage if there was a floor under all wages.

Can a $10 minimum wage end working poverty?

April 15, 2015

Answer to the question: No.

Why were Democrats AWOL on minimum wage?

January 26, 2015

President Obama in his 2013 State of the Union message proposed tying the minimum wage to the rate of inflation.

A blogger named Jamison Foser pointed out that the Democrats, who had a majority in the Senate, did not introduce any legislation in 2014 to accomplish that.

minimum_wage_onpagePresident Obama in his 2014 State of the Union message proposed an increase in the minimum wage.

Foser pointed out that the Democrats, who still had a majority in the Senate, introduced a bill in April to raise the minimum wage and, when it failed, they did not try again.

The Republicans who controlled the House of Representatives meanwhile passed bill after bill to repeal Obamacare.

Pundits ridiculed them for this, but in the 2014 elections, the Obamacare mess was a much bigger issue for voters than minimum wage.  Some states that passed referendums to increase the minimum wage still voted Republican.

This is a failure of the whole Washington leadership of the Democratic Party.

What good are politicians who won’t fight for the public good even when it’s popular?

LINK

After the State of the Union by Jamison Foser.  Hat tip to Mike the Mad Biologist.