so apperantly 40% of americans make less than the 1968 minimum wage

[shiznut123]

Some of our country's best periods of growth have followed increases in minimum wage. In 1996-1997, when minimum wage went from 4.25- 5.15, we had tremendous growth in the following couple of years. Then after 10 years of no minimum wage increases to 2007, we finally started to increase minimum wages again and the economy has been getting better over the past couple of years.

Can you point to any evidence that people will get laid off by increasing wages?

If you want to get into the topic of auto manufacturers, let's use a real life example like Henry Ford and his decision to set a $5 a day wage and to realize that when his own employees could afford the cars they made, the company would be successful. That is the difference between the past when people thought long term and the present when people think short term about how they can get the biggest bonus even if it risks bankrupting the entire corporation.

http://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/

Are you saying that the minimum wage increases were responsible for the majority of the economic growth? Interest rates were low at that time and then there was the internet boom among other factors.

A minimum wage is a price floor. A simple supply and demand graph will show supply of workers will outweigh demand by employers, an inefficiency. Companies will reduce labor if their marginal revenue product is not enough to cover the cost of labor.

 

[Betonblck]

Some of our country's best periods of growth have followed increases in minimum wage. In 1996-1997, when minimum wage went from 4.25- 5.15, we had tremendous growth in the following couple of years. Then after 10 years of no minimum wage increases to 2007, we finally started to increase minimum wages again and the economy has been getting better over the past couple of years.

Can you point to any evidence that people will get laid off by increasing wages?

If you want to get into the topic of auto manufacturers, let's use a real life example like Henry Ford and his decision to set a $5 a day wage and to realize that when his own employees could afford the cars they made, the company would be successful. That is the difference between the past when people thought long term and the present when people think short term about how they can get the biggest bonus even if it risks bankrupting the entire corporation.

http://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/

Are you saying that the minimum wage increases were responsible for the majority of the economic growth? Interest rates were low at that time and then there was the internet boom among other factors.

A minimum wage is a price floor. A simple supply and demand graph will show supply of workers will outweigh demand by employers, an inefficiency. Companies will reduce labor if their marginal revenue product is not enough to cover the cost of labor.

I am saying that I don't see any evidence that there is a direct correlation between job losses and higher minimum wage. If anything, it seems like job creation increased in the years following minimum wage increases. Of course there is a lag from when the minimum wage increases, to where it flows through the rest of the economy.

I could get deeper but to start, you are ignoring the demand part of the equation. Demand increases when wages go up, especially for those on the lower end of the wage scale. People replace used cars, people buy bigger houses, people make upgrades to their homes, etc, etc. That is a fact.

 

[ricky409]

Some of our country's best periods of growth have followed increases in minimum wage. In 1996-1997, when minimum wage went from 4.25- 5.15, we had tremendous growth in the following couple of years. Then after 10 years of no minimum wage increases to 2007, we finally started to increase minimum wages again and the economy has been getting better over the past couple of years.

Can you point to any evidence that people will get laid off by increasing wages?

If you want to get into the topic of auto manufacturers, let's use a real life example like Henry Ford and his decision to set a $5 a day wage and to realize that when his own employees could afford the cars they made, the company would be successful. That is the difference between the past when people thought long term and the present when people think short term about how they can get the biggest bonus even if it risks bankrupting the entire corporation.

http://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/

pretty sure if you're working in at ford, you're making more than 7.25...

Lets say you're making 15 Hr, and you can afford a car... that's 30k...

Minimum wage goes up 140%... so naturally, that guy that's making $15 isn't going to take a $1 increase ... hes going to want, and lets cut that in half, 70% increase ... that's an increase of $11 an hour..
22k A year brah...

and that's the lowest level employee ... imagine mid management, other workers, the janitors...

$22k for one guy? How are they going to pay for all these increases in wages.

Cars are going to go up in price to compensate for the increase in wages. That's fundamental economics bro. .

You Brought a 25% increase to the table... I'm talking 140%... and in 95, the housing bubble hadn't ROCKED the Economy like today.

 

[cacique]

This is what happens when workers rights and corporate regulations are stripped.

 

[flasurfing]

If youre over 21 an earn less than 16.50 and not currently a student.....get off Niketalk.

$16.50 isn't bad money for a young person depending on where you live though.

This

Not too good if you live in NYC, SF, or comparible locations, but its decent for 21-25 year olds to make where i live.

Where you live Audi?  And how much do you make/ what do you do?

 

[Betonblck]

Some of our country's best periods of growth have followed increases in minimum wage. In 1996-1997, when minimum wage went from 4.25- 5.15, we had tremendous growth in the following couple of years. Then after 10 years of no minimum wage increases to 2007, we finally started to increase minimum wages again and the economy has been getting better over the past couple of years.

Can you point to any evidence that people will get laid off by increasing wages?

If you want to get into the topic of auto manufacturers, let's use a real life example like Henry Ford and his decision to set a $5 a day wage and to realize that when his own employees could afford the cars they made, the company would be successful. That is the difference between the past when people thought long term and the present when people think short term about how they can get the biggest bonus even if it risks bankrupting the entire corporation.

http://learning.blogs.nytimes.com/2012/01/05/jan-5-1914-henry-ford-implements-5-a-day-wage/

pretty sure if you're working in at ford, you're making more than 7.25...

Lets say you're making 15 Hr, and you can afford a car... that's 30k...

Minimum wage goes up 140%... so naturally, that guy that's making $15 isn't going to take a $1 increase ... hes going to want, and lets cut that in half, 70% increase ... that's an increase of $11 an hour..
22k A year brah...

and that's the lowest level employee ... imagine mid management, other workers, the janitors...

$22k for one guy? How are they going to pay for all these increases in wages.

Cars are going to go up in price to compensate for the increase in wages. That's fundamental economics bro. .

You Brought a 25% increase to the table... I'm talking 140%... and in 95, the housing bubble hadn't ROCKED the Economy like today.

You are still throwing out these extreme examples to try to support your argument. It is ridiculous to make an example that minimum wage would go up 140% overnight. Just as our country has done in the past, it would be gradual. Cars aren't as labor intensive as they were in the past because of robots. Let's add more facts to the discussion and less speculation.

 

[david bowman]

This is what happens when workers rights and corporate regulations are stripped.

Corporations are people, my friend.

 

[crcballer55]

If youre over 21 an earn less than 16.50 and not currently a student.....get off Niketalk.

$16.50 isn't bad money for a young person depending on where you live though.

This

Not too good if you live in NYC, SF, or comparible locations, but its decent for 21-25 year olds to make where i live.

Where you live Audi?  And how much do you make/ what do you do?

Like I said earlier, the federal minimum wage argument is a political argument more than an economic one. There are only a handful of states that actually have their minimum wage pegged to the federal minimum wage. The rest are higher to adjust for their cost of living. Why not just let states decide what's best for its citizens?

 

[Rootin4EverybodyBlack]

Like I said earlier, the federal minimum wage argument is a political argument more than an economic one. There are only a handful of states that actually have their minimum wage pegged to the federal minimum wage. The rest are higher to adjust for their cost of living. Why not just let states decide what's best for its citizens?

Problem with that is state minimum wage doesn't take into cost of living in different areas of the state. For example, I used to live in Northern VA, a fairly large area, something like 2 millon + people live there, near DC. Cost of living in Northern VA is high as hell, but cost of living in other parts of VA (Richmond, 7 cities, etc) is fairly low. Problem is the minimum wage for the whole state, no matter where u lived was 7.50.

 

[melo0115]

Sounds like some sort of thatcherism on the Fed Reserves part...

 

[kix4kix]

Problem with that is state minimum wage doesn't take into cost of living in different areas of the state. For example, I used to live in Northern VA, a fairly large area, something like 2 millon + people live there, near DC. Cost of living in Northern VA is high as hell, but cost of living in other parts of VA (Richmond, 7 cities, etc) is fairly low. Problem is the minimum wage for the whole state, no matter where u lived was 7.50.

Still higher than the federal though.

And let's be honest, are not most of those jobs designed for high school or college students anyway? where in all honesty are probably over paid anyway.

 

[crcballer55]

Like I said earlier, the federal minimum wage argument is a political argument more than an economic one. There are only a handful of states that actually have their minimum wage pegged to the federal minimum wage. The rest are higher to adjust for their cost of living. Why not just let states decide what's best for its citizens?

Problem with that is state minimum wage doesn't take into cost of living in different areas of the state. For example, I used to live in Northern VA, a fairly large area, something like 2 millon + people live there, near DC. Cost of living in Northern VA is high as hell, but cost of living in other parts of VA (Richmond, 7 cities, etc) is fairly low. Problem is the minimum wage for the whole state, no matter where u lived was 7.50.

How is that different from a federal implementation of the minimum wage? Think of the drastic disparity between a place like New York & Mississippi.

Also like I noted earlier, the minimum wage is something that largely helps middle class white kids more than immigrants & heads of households.

 

[dreslay]

To think what the united states of america would be like if it had stayed the way the founding fathers had intended it to be...how.....EXPONENTIALLY greater america would be and to the world. Its so sad, its heart-breaking.

 

[Rootin4EverybodyBlack]

To think what the united states of america would be like if it had stayed the way the founding fathers had intended it to be...how.....EXPONENTIALLY greater america would be and to the world. Its so sad, its heart-breaking.

Well personally I would be a slave right now if that was the case...so yeah can't agree with that.