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Traditional Catholic Faith => The Greater Depression - Chapter I => Topic started by: RomanCatholic1953 on December 26, 2016, 07:10:11 AM
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Revisiting the $15.00 Minimum Wage-Does it work?
www.wealthauthority.com
A while back, we discussed the minimum wage hikes in Seattle and used it to paint a picture of how the rest of the country might fare under a similar law. The outlook was not good, but the amount of data at our disposal was pretty limited.
Now that the city has been under hikes for almost two years, and because another hike is scheduled for January 1, it’s worth revisiting the statistics to see if our previous assessment holds true.
November Jobs Report
If you recall, the November Jobs Report for the U.S. showed that the Trump Bump was helping the entire country. A specific review of the state of Washington and Seattle area can shed light on how Trump’s impact has weighed against the minimum wage hikes in the city. To start with, Seattle is enjoying record low unemployment, and by and large the Trump Bump is raining money on the masses.
It looks like the minimum wage didn’t hurt at all . . . until we look at the data that matters: retail and restaurants. In November, the Seattle area saw a net nonfarm job increase of 3,600. Jobs that employ the bottom quintile earners, namely retail and restaurants, saw a net job loss of 1,200 and 3,100 positions respectively.
If you also note that November is far and away the biggest retail hiring month of the year, these numbers aren’t just bad; they’re devastating. Even more damning are the numbers for the whole state of Washington. If Seattle is excluded, then the state added 3.100 jobs in the food industry. Seattle’s loss is so extreme, that it puts the entire state in the hole by another 3,000 jobs in that industry.
The Trump Bump was unable to reach this marginalized group, and the rate of job loss is accelerating, despite statewide and national booms.
Long-Term Trends
November’s findings were nothing new. Food industry jobs have been in decline in the region since 2015 (when the first stage of the minimum wage hike went into effect), and despite desperate attempts by proponents of the wage to deny it, there is now an undeniable trend.
Many wage supporters will claim that the decline in restaurant jobs predates the minimum wage, but that simply isn’t true. From 2011 to the start of 2015, the Seattle region added 25,000 jobs in the industry, and 5,000 of them were added in 2014 alone. That rate slightly exceeded the rest of Washington, and it far exceeded national averages.
Since the wage hike went into effect, Washington has added another 10,000 jobs, while Seattle has seen a net loss. No matter how you try to spin it, the trend shifts correlate perfectly with the wage hike, and the statistics from the rest of the state eliminate other regional or temporary factors.
Whereas early reports were showing that the wage hike was a wash for wage earners, downward trends have now held long enough to make the overall impact detrimental. Bottom earners in Seattle are now bringing in less money overall than they were before the wage hike. But, that’s not even the worst part.
A Perspective on Data
All of these statistics have one thing in common. They do not separate the City of Seattle from the rest of the metropolitan area. Bellevue and Everett have not instituted the same wage increases, so there is disparity in measurement.
In order to better separate the data, it must be made clear that Seattle only accounts for 25 percent of the total population of the greater metro area. While there is less reliable data for job rates in each distinct city, most reports suggest that restaurants outside of the minimum wage zone have not slowed hiring.
That means that the situation within Seattle is substantially worse than the impressions you’ve had up to this point. Job losses for minimum wage earners are so extreme that they are causing a negative report for an area three times larger than the region that is actually suffering. To put this in context, consider this analogy:
Suppose we took four students and averaged their grades. The top three students in the group all have A’s, but the fourth student is failing. In fact, the fourth student’s grade is so low that it brings the group’s average below passing. Assuming a standard grading scale, if the three A students each have a 90 percent, then the failing student would actually require a negative score to bring them all down so far. Minimum wage earners in Seattle aren’t facing a setback. They are facing annihilation.
Regards,
Ethan Warrick
Editor
Wealth Authority
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How about the whole American economic system is a pile of trash where it is hard for many people to make enough for a decent life. Sure, with both the husband and wife working, people can make it. But for people like me who am the sole bread-winner, it is difficult.
I cannot wait for this whole shitty American way of life to come crashing down.
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Not in all of the country.
There are some places where the cost of living is so exorbitant that it would be a necessity like New York City, LA or Honolulu (believe it or not!). And if it's ever proposed, it has to be gradual. It would decimate small business if it weren't.
If you want to really help the economy, go back to the pre-Reagan tax system where the top 1% paid 70% in taxes, introduce affordable university, put a cap on CEO salaries and let's have a single-payer healthcare system in place so people won't go bankrupt over medical necessities.
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If you want to really help the economy, go back to the pre-Reagan tax system where the top 1% paid 70% in taxes, introduce affordable university, put a cap on CEO salaries and let's have a single-payer healthcare system in place so people won't go bankrupt over medical necessities.
So you really think the state should take 70 percent of people's income when the Church only asks 10 percent in tithes? When countries were Catholic did the state really take so much of people's incomes? What were the tax rates under Catholic monarchs? Did they ever approach 70 percent? I mean if we are going to have free public schools and free or heavily subsidized universities and free or heavily subsidized medical insurance the tax rates are going to be very high.
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If you want to really help the economy, go back to the pre-Reagan tax system where the top 1% paid 70% in taxes, introduce affordable university, put a cap on CEO salaries and let's have a single-payer healthcare system in place so people won't go bankrupt over medical necessities.
Where are the people going to get jobs in this standard parroted solution? From raising taxes on the rich means? No. From free university education? No. From free healthcare? No. Those are not solutions to the problem.
We need to produce what we consume, then everyone will have jobs, and then you can tax some income, do something with the free university degree, and be able to pay the single-payer healthcare.
Here is one solution: We have to tax imports to cover for all the laws that have to be followed by US manufacturers, every single last one of them. Then USA manufacturers will be able to compete on a level field. Also, Americans also need to buy American. It's either that or buy from the Chinese and have your poor neighbor rob you (which is what is happening today).
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Not in all of the country.
There are some places where the cost of living is so exorbitant that it would be a necessity like New York City, LA or Honolulu (believe it or not!). And if it's ever proposed, it has to be gradual. It would decimate small business if it weren't.
If you want to really help the economy, go back to the pre-Reagan tax system where the top 1% paid 70% in taxes, introduce affordable university, put a cap on CEO salaries and let's have a single-payer healthcare system in place so people won't go bankrupt over medical necessities.
I am constantly amazed at the number of people who fancy themselves to be Catholic but are, in reality, uber-liberal communists.
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Not in all of the country.
There are some places where the cost of living is so exorbitant that it would be a necessity like New York City, LA or Honolulu (believe it or not!). And if it's ever proposed, it has to be gradual. It would decimate small business if it weren't.
If you want to really help the economy, go back to the pre-Reagan tax system where the top 1% paid 70% in taxes, introduce affordable university, put a cap on CEO salaries and let's have a single-payer healthcare system in place so people won't go bankrupt over medical necessities.
I am constantly amazed at the number of people who fancy themselves to be Catholic but are, in reality, uber-liberal communists.
A) What I believe is fiscal CENTRISM, brother. "Uber-liberal communism" is things like Venezuela, pre-Deng Xiaoping China and Vietnam.
B) Would anything like this magnitude ever happen here? Hell no. We're a country of a 1/3rd of a billion people, nothing gets done here on a national level.
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A) What I believe is fiscal CENTRISM, brother. "Uber-liberal communism" is things like Venezuela, pre-Deng Xiaoping China and Vietnam.
Centrism. Well in our liberal world the politics move to the left every generation so if you would be a centrist now twenty years ago you would be considered a far left liberal with the same views and a hundred years ago you would be considered so liberal that you views would be off the charts and everyone would think you were insane.
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If it was not for these useless wars in the middle east that is a cover for
the expansion of Greater Israel in which American and NATO soldiers are
used instead of Israeli soldiers. Closing down those Military bases
that are not needed. And stop being the world's Policeman.
We will have so much money that could be used for rebuilding our
infrastructure, our cities, Free Medical care. Free College education
without the brainwashing, and many and many more.
This can be done without raising no one's taxes including the wealthy
whom actually provides the seed money for future industrial expansion,
real jobs, and job growth with real increasing incomes. :cheers:
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Everything is so screwed up it's almost unbelievable.
A low minimum wage acts as an incentive that is designed to advance the person out of that low paying job and move on to a career that either immediately or eventually pays a better or a living wage, a career where one starts at the bottom and works their way up the corporate ladder with the expectation of an increasing salary with each advancement. Depending on the career, one can expect to reach their plateau after about 10 years or so. Certainly with exceptions, but that's the way it used to be.
Those who chose to remain a waiter / waitress or fast food employee or whatever, whether of their own free will or out of necessity, cannot expect that low paying position to pay a whole lot above minimum wage because if it did, that would only mean higher prices paid for all the consumers, which, as common sense should dictate, it's only a matter of time before that $15/hour will need to go up to $20/hour, then $25/hour and so on.
My advise is to tell them to get a real job, otherwise all they get is minimum wage and they should be thankful they're getting that. Whose fault is it that they can't find a real job, that they're not qualified for available ones or perhaps that they want to make a career out of working at Taco Bell?
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I am constantly amazed at the number of people who fancy themselves to be Catholic but are, in reality, uber-liberal communists.
I should not have characterized anyone on this forum as an "uber-liberal communist".
Communists are, by definition, godless atheists, and I doubt any regular posters on this forum are godless atheists.
At best, they are simple-minded "useful idiots", parroting the wants and desires of the communists without really knowing anything about economics, human nature, or the Church's teachings on social justice and subsidiarity.
Whether their ignorance is a result of simply not taking the time to learn anything or out of spite and envy of other people is not a question I will contemplate. Their ignorance is, however, entirely vincible, and they put their souls in grave danger.
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Father Fahey writes well on the above subject and I recommend his works to anyone who wishes to get the proper Catholic understanding.
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Father Fahey writes well on the above subject and I recommend his works to anyone who wishes to get the proper Catholic understanding.
Excellent advice.
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I do think that there will be fewer jobs in Seattle (retail and restaurant, mainly)and in the surrounding area, due to the new minimum wage law. I work part-time in a grocery store (large chain store) in a suburb of Seattle. Recently, the store management have decided not to replace workers who are quitting or transferring to other departments. This means that there will be fewer workers to do the job. Meaning that the workers will be over-burdened with too much to do, which isn't much fun, that's for sure.
I think that this is how they are dealing with the issue of the new minimum wage, which I was against, even though our union pushed for it, of course. I told our union rep that such a high minimum wage was a bad idea, but being an uber-liberal, he didn't pay any attention.
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It would decimate small business.
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15.00 minimum wage-Does it work?
What will happen is that the price of just about everything else will go up also and before you know it we will be talking about the need for another raise to the minimum wage.
:scratchchin: :scratchchin: :scratchchin:
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Raising the minimum wage in this day and age in which many jobs can be
done by robots and machines and unprofitable places will be closed and
shut down leading to more unemployment.
A leading business just laid off all their American born employees and
replacing them with recent migrants, immigrants. You know the
reason is that they will pay them a lower wage.
The government does not tell us the true scope of unemployment. It has
been never been 5% it has been closer to 30% about as high as the
great depression of the 1930's. Their are about 90-95 million Americans
willing to work but are unable to find work. Most of all have used up their
unemployment insurance long ago and subsisting on food stamps, welfare
and the underground economy.
I was hoping that President Trump would stop all immigration into this
country until Americans willing and able to work find jobs.
Those with green cards should exit the country along with the recent
legal and illegal immigrants.
Instead of building a wall. Just enforce the immigration laws already
on the books and penalize the employees that hire illegals.
Go to my post "Why you cannot find a job".
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Wendy's Install Robots in 1,000 Stores to Counter Minimum Wage
3-1-17
Source: Matt Aguris
blacklistednews.com
The fast food industry is now reacting to the mandatory minimum wage increases…
For the last several years, the Free Thought Project has been predicting what will happen as government continued to arbitrarily fix wages across the US. As politicians deceive their constituents into thinking financial success can come through an act of legislation, employers will find a way to offset this cost. It will either come through higher prices or, in this most recent Wendy’s case — robots.
To offset the costs of being forced to pay employees $15 an hour, Bob Wright, Wendy’s Chief Operating Officer told investors last week Wendy’s has found a solution. In the past two years, Wright noted, Wendy’s has figured out how to eliminate 31 hours of labor per week from its restaurants and is now working to use technology, such as kiosks, to increase efficiency.
The automated kiosks serve two purposes: they give younger customers an ordering experience that they prefer, and they reduce labor costs.
“There is a huge amount of pull from (franchisees) in order to get them,” David Trimm, Wendy’s chief information officer, said last week during the company’s investors’ day.
“With the demand we are seeing … we can absolutely see our way to having 1,000 or more restaurants live with kiosks by the end of the year
The spike in demand stems from restaurant owners who want to maintain low prices while sustaining profitability.
A typical store would get three kiosks for about $15,000. Trimm estimated the payback on those machines would be less than two years, thanks to labor savings and increased sales. Customers still could order at the counter.
Kiosks are where the industry is headed, but Wendy’s is ahead of the curve, said Darren Tristano, vice president with Technomic, a food-service research and consulting firm.
“They are looking to improve their automation and their labor costs, and this is a good way to do it,” Tristano said. “They are also trying to enhance the customer experience. Younger customers prefer to use a kiosk.”
While Wendy’s is ahead of the curve as far as outsourcing labor to robots goes, other fast food restaurants are not far behind.
Last month, the Free Thought Project reported on McDonald’s latest attempt to stave off minimum wage hikes. However, unlike Wendy’s kiosks that simply take your order, the McDonald’s machines do it all — including spitting out a piping hot, 563 calorie, Big Mac.
While automation in the labor market is inevitable as technology increases, laws that dictate minimum wages only serve to speed up this automation. Sadly, many people will read this article and immediately assume that it’s some fascist right wing rant that ignores the plight of the working class. However, that assessment couldn’t be further from the truth.
Raising the minimum wage does nothing to protect the working class. In fact, as we see with these Wendy’s robots, a mandatory minimum wage destroys the working class.
As Nobelist Milton Friedman correctly quipped, “A minimum wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills.”
If the economic effects of a minimum wage aren’t convincing enough, perhaps consider the racist background of such laws. As Andrew Syrios points out, most Americans have no clue about the racist intentions and subsequent effects of the original minimum wage.
When Apartheid was collapsing in South Africa, the economist Walter Williams did a study of South African labor markets and found that many white unions were seeking to increase the minimum wage. He quotes one such union leader as saying “… I support the rate for the job (minimum wages) as the second best way of protecting white artisans.” By pricing out less educated black laborers with a minimum wage, white unions were able to insulate themselves from competition.
Indeed, the Davis-Bacon Act, which demands that private employers pay “prevailing wages” for any government contracts, was explicitly passed as a Jim Crow law in order to protect white jobs from cheaper black competitors. And while the minimum wage is supported with much more pleasant rhetoric these days, the effects on black employment, particularly black teenage employment, have been devastating. As Thomas Sowell observes,
In 1948 … the unemployment rate among black 16-year-olds and 17-year-olds was 9.4 percent, slightly lower than that for white kids the same ages, which was 10.2 percent. Over the decades since then, we have gotten used to unemployment rates among black teenagers being over 30 percent, 40 percent or in some years even 50 percent.
It’s hard to imagine that black unemployment was actually less than that of whites. But that is the effect minimum wage laws can have.
Ending poverty and giving people additional income are praiseworthy goals, but there are no free lunches in this world. And trying to force prosperity through a minimum wage simply creates a whole host of negative and unintended consequences especially for those who are the most vulnerable.
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Everything is so screwed up it's almost unbelievable.
A low minimum wage acts as an incentive that is designed to advance the person out of that low paying job and move on to a career that either immediately or eventually pays a better or a living wage, a career where one starts at the bottom and works their way up the corporate ladder with the expectation of an increasing salary with each advancement. Depending on the career, one can expect to reach their plateau after about 10 years or so. Certainly with exceptions, but that's the way it used to be.
Those who chose to remain a waiter / waitress or fast food employee or whatever, whether of their own free will or out of necessity, cannot expect that low paying position to pay a whole lot above minimum wage because if it did, that would only mean higher prices paid for all the consumers, which, as common sense should dictate, it's only a matter of time before that $15/hour will need to go up to $20/hour, then $25/hour and so on.
My advise is to tell them to get a real job, otherwise all they get is minimum wage and they should be thankful they're getting that. Whose fault is it that they can't find a real job, that they're not qualified for available ones or perhaps that they want to make a career out of working at Taco Bell?
I'm not an economist, so I don't pretend to have solutions for the high cost of living in the U.S., but I will make this one observation. There has been an almost tangible shift (certainly a visible one) from what The Average Joe expected out of life and out of government when I was growing up vs. today.
As Stubborn notes, many workers are not motivated to improve themselves enough to exit from a wage ceiling and an opportunity ceiling. That category of worker existed during my childhood as well. They might have been manual laborers or other kinds of hired help, including lifelong store clerks and such. They had at best a high school education (usually). However, their material aspirations matched their abilities. Even if they fantasized about become rich one day (usually only through luck), overall they expected to live within their means throughout their lifetimes, and they demanded nothing of the governmentr. And overall, they were able to live on their salaries, because inflation was more moderate and more predictable.
The major metropolitan centers in the U.S. have increasingly become unaffordable to all but the upper-middle-class. The change became noticeable, and began building momentum, in the 1980's. Survival in these regions approaches some Darwinian version of the macabre. That's Problem One, and a problem that was not a widespread reality in my childhood.
Problem Two, however -- and something equally modern/novel in origin -- is that low wage earners are for the most part no longer willing to live within their means, assuming they can survive somewhere on some basic level and are not in true peril. The entitlement mentality has mushroomed out of control and is a significant factor among pressure groups and others who lobby the government. The thesis is that those who have not accomplished and are not specially skilled should be able to buy what those much richer can buy. Unearned opportunity is described increasingly as an essential right of the working man and woman.
The right to exercise unjust avarice and reap what one does not sow.
Swell.
It is an impulse not born from desperation and poverty but from plenty and from envy.