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by PostOnce
3472 days ago
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Out of sight, out of mind. It's not like those people have the same standard of living but just with lower living costs. You know a WHOLE LOT of people would rather make 500k a year than 300k even if it means their employees are damn near homeless and malnourished. See: any biz with min wage employees in the US. Plus you're not bound by the same labor laws if you hire from overseas, only public outrage if the public ever finds out. edit: that is to say, instead of thinking of it as "the price has adjusted", we can think of it as "greed is no longer constrained by the difficulty of overseas communication". Our laws can't contain greed, if we can just export it to where we have no jurisdiction. |
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Nah, sorry. That's just over the top and not true. I worked two separate minimum wage jobs before I was 20, and both had owner / operators who made no where near that kind of money. One was an entrepreneur who was losing money every year, but believed he had a good product that could grow with franchises (and it did). The other ended up having his collection of businesses go under due to Netflix (they were video stores).
Minimum wage does not imply improperly priced labor. While it is not a living wage in much of the United States, to assume it is purely exploitive is also an overdramatized statement.
I'm not exceptionally well versed in minimum wage theory, so my opinions are based on listening to numerous Econtalk podcasts on the subject (https://goo.gl/IbKS1F). Some argue for an elimination of the minimum wage, others for a vast expansion at the federal level, others for a broader expansion at the state level.
My personal observation is that the minimum wage discussion is interesting, but mostly just the tip of the ice berg and serves as more of a distraction around more meaningful conversations. 1. Minimum wage accounts for less than 2% of the hourly workforce in the United States (https://goo.gl/Q9S2Mf). Looking at it on a state by state basis, that number increases; however, let's focus on the federal wage for now. 2. There are more than seven times more people in the United States (14M+) who are either unemployed (seeking but can't find work) or underemployed (have work, but are seeking more) :: https://data.bls.gov/timeseries/LNS13327709 3. There are over 60M Americans who work hourly jobs in the United States, and 4.6M will have to find new work each year due to regular turnover in the market (I don't have my citations handy for this one, have it in a document that is missing the citation, but I'm confident on the figure).
For a worker working 32 hours at the 8.25 minimum wage, they can expect to make $264 / week. Give them a 10% raise, and they're at $9.075, or $290.40 / week. Or, alternatively, let's give that worker better access to full employment, and they reach 40 hours, but only make $8.25 / hour, or $330 / week.
Given an average number of weeks of 52.1429 per year our example workers can expect to make:
Fully Employed Minimum Wage: $17,207.15 Under Employed Higher Wage: $15,142.29
In this very simple example (with some assumptions that are admittedly contrived), the fully employed minimum wage worker is in fact, better off. They are still impoverished, they still have a tough life and will not be able to have many luxuries; however, full employment, in this example, is more optimal when purely looking at salary.
Full employment, mixed with increasing wages, and decreasing prices of goods and services, is the combination we should all be striving for.