But if you raise the base artificially it pushes the whole structure upward artificially In the chart i posted, it seems like people who work at the minimum wage are disappearing due to the free market
True. Let’s look at participation though... Minimum wage doesn’t seem to make a difference. An efficient economy will reach full employment over time. I totally get the argument that $15 an hour is too high for a lot of states but what I don’t follow is that something like $12 phased in is somehow an economic catastrophe. It will be fine.
Almost anyone can earn $40k/year plus benefits if they want to work 40 hours a week. issue is that some people can't work forty hours a week - for example single moms, or they don't want to (a lot of people on minimum wage choose not to apply themselves - i've seen it first hand). Some of these people choose not to apply themselves because they are actually lazy and others because they haven't seen or don't believe they can do more in this world. You want to raise wages? Instead of supporting a minimum wage which will encourage businesses to automate or reduce their headcount, push for free community college. That will improve wages and improve the productivity of America. Germany is an expensive country with high wages - but they are also insanely productive because those employees have strong skills. In America there are no skills. Urban legend is that McDonalds created the value meals because a minimum wage worker couldn't enter a big mac, fries, and a coke easily. paying that guy $15 isn't going to incentivize him to learn to count - but it will disincentivize the guy making $20 who's his shift lead.
I am pushing for free community college and trade school, along with a minimum wage increase. However, I do not believe $15 is the right amount for federal minimum wage.
I am very much in favor of free community college and trade schools. I am very much against an increase in the minimum wage. I don't think it solves any real problems but creates more. Even the proponents on here are in agreement it will hurt employment - even though very few workers actually get paid minimum wage.
So, I’m not in agreement that it will “hurt” employment is phased in and accompanied by proper tax support - as is standard. I’m not sure if CBO used appropriate methodology in its analysis. However, what I have said is that there will be some initial displacement - not as major as some would think but there will be some - and drive right back to full employment, barring some economic catastrophe but Democrat Presidents usually avoid economic catastrophe.
because the current min wage does create a situation where a significant amount of people can be underpaid legally where states decided to keep the federal levels. It is easy to be rich and ignore millions of people earning $58 a day but it is a reality and why is it costs are allowed to increase with cost of living but minimum wage is allowed to stay the same for 20 years....
Indeed, and I'm now ready to take up that discussion again if you care to. I realized later there was something wrong with our assumptions.