Does raising minimum wage help or hurt you? That is the question that economists have been asking themselves over the past few years as cities like San Francisco and Los Angeles have been raising their minimum wages well beyond the federal minimum wage requirement. And while it may seem like a blessing, there are also some noteworthy consequences that recent studies have discovered. And while some say getting rid of the minimum wage in its entirety is the answer, others say we need to increase it federally to $15 an hour. But of course there are problems with both of these solutions.
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Obama - http://www.nytimes.com/2013/02/13/us/politics/obamas-2013-state-of-the-union-address.html
Profit Over People - https://www.youtube.com/watch?v=fBbdO-dO1Cs
Pro Free Market Remove Minimum Wage Article - https://fee.org/articles/the-truth-about-the-minimum-wage/
Seattle Report - https://evans.uw.edu/sites/default/files/two%20page%20overview.pdf
Effects of Minimum Wage on Employment - http://www.frbsf.org/economic-research/publications/economic-letter/2015/december/effects-of-minimum-wage-on-employment/
Pre 1938 Working Conditions - http://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/working-conditions-factories-issue
Current Nike Factory - http://www.laborrights.org/in-the-news/six-cents-hour
I think a huge problem is that too many people conflate not living in luxury with poverty. There is a BIG difference between not being able to afford that second Tv and Iphone, and not being able to afford food.
This is stupid. There are plenty of studies showing an increase in unemployment with every minimum wage hike. Every time you raise minimum wage you merely price people out of the market whose labor is worth less than that. Illegals are picking strawberries because legal citizens can't get a job that pays less than minimum wage even if they are perfectly willing to. The employer isn't going to risk hiring legal citizens and possibly getting narced on when he can just hire illegals and pay them cash.
Not only that, but other idiotic regulations have made it so that an employer is forced to spend something like $10,000 a year just to hire a person, not including the cost of actually paying them. That cost is what drives many jobs overseas, is taken out of what would have otherwise been paid in wages, and encourages people to hire illegals even if they end up paying the illegals well above minimum wage. You can afford to pay them practically twice as much if you aren't paying ridiculous fees to hire them.
The Minimum Wage is the bottom of the free market; the foundation. It would be like lifting someone from the feet. Yes, they are the feet are higher, but so is the rest is the rest of the body. This my friends, is what I call "Inflation".
The solution is not to raise the minimum wage, it’s to change the mentality in our country. If everyone is motivated to create their own business and be entrepreneurs, it would be possible for them all to be successful.
Personally, I think there should be no minimum wage, BUT the government should increase the private sector union power to allow workers to negotiate and fight for themselves. Then, if their wages are too low, it is their own fault for not negotiating properly.
I honestly don't see the logic behind a minimum wage. It just seems like a flimsy policy based off of normative statements. Saying "People should not have to live in poverty." isn't cogent point as poverty in America is much less pronounced.
I also don't see the problem with paying someone 4 dollars an hour. Again, this is America. No one's forcing you to take that job. If anything, it leaves fewer opportunities for unskilled workers, as those 4 dollar an hour jobs no longer exist.
Also It's a blatant violation of free trade. Everyone would see the issue if the government imposed a maximum wage, or a minimum price for all goods. Granted, the sort of do that with taxes and progressivism...
"as the rich get richer, the poor get poorer"
this is manifestly false. as long as they aren't getting richer through the intervention of the state, the rich can only get richer by providing things that other people want more than what they have to pay to get them. this simultaneously makes the people who buy them also richer, not in terms of dollars, but in terms of subjective wealth. the lowest paid Mexican immigrant worker earns a better living than he would earn in mexico, which is why he comes here. he is not being oppressed, but rather he is better off than he other wise wold be given the options available to himself.
The minimum wage is a myth. No matter what you raise the "minimum wage" to, the true minimum wage is zero. The answer to low wage workers needing to make more money is for them to gain skills that are worth more money. Either work hard and move up within the company you work for, or learn a skill that's worth more money than you currently make and switch to a more profitable career. Low wage jobs are meant to be a starting point, not a lifetime career.
Well, working less is not a bad thing in general, i know a lot of people that spend a lot of time at work doing nothing, having a higher minimum wage increases the need for efficiency a bit, which is a good thing
Biggest problem I have with minimum wage just has to do with the type of country I want to live in. I want to live in a free country with smaller communities of people who voluntarily decide how to exchange goods and services with more small and local businesses, not this giant impersonal corporate nation of red tape where the government has to constantly mandate what workers receive as giant firms consult with their accountants and lawyers. All this red tape makes our lives very impersonal, destroys our sense of community, reduces the amount of competition in the market, and traps those less fortunate into the lowest rungs of the economic ladder. Most of all it just makes the country lose all sense of diversity and flavor. It's rather depressing to drive through the nation and just see an endless repetition of McDonalds, Wal-Marts, and Starbucks, and I see that problem only getting worse with more and more regulations and mandates.
median pay goes down while salaries of richest people triple in few years, enough said. I hate people saying that we should just sit there and let the monopolists intimidate us with automation. and for those idiots who say "why not $100 minimum wage" - you can't pay people more than they produce, idiot, but I'm sure that McDonald's workers produce enough to not live in poverty and paying 10 cents more for a burger wouldn't kill you.
Im just going to say that minimum wage is ridiculous as a majority of the unskilled jobs still pay more than it. The only ones that don't is food, and that is because local food establishments struggle to keep their doors open and owners out of debt because of minimum wage. This allows the giant corporations to grow richer as they can afford to pay the minimum wage and thus end up gaining more business because the customers that would go to a local place would now be going to a conglomerate instead. Just a thought
What about people making more then minimum wage and don't get raises. I'm a truck driver and in December when the idiot government in ny increased minimum wage it drove up inflation and I took a pay cut.
Why should I take paycuts when I'm the one who went and got a very marketable skill??
So many people's comments don't reflect reality, as this video oversimplifies the working conditions today. To say that minimum wage jobs aren't intended to be careers, are meant to be starter jobs for teenagers or people working minimum wage jobs shouldn't have kids to support ignores the fact that over 50% of the US has a minimum wage job. There obviously aren't that many teenagers, high schoolers or people just getting work experience or making some extra money, so, whether they were meant to or not, millions of families ARE supporting children & families on min wages— most often working 2-3 just to be able to barely be above poverty.
&, without question increased skills, training & ability can open doors for better, higher paying jobs & long-term careers. But where are they going to get this education from?? Anybody who's ever looked into these for-profit trade schools knows they cost at least $10k in tuition & fees & trade & tech colleges tuitions & have increased while the quality of the classes, instructors & programs has decreased. With the govt continually cutting education funding the trade & job training classes in public high schools are nearly non-existent in most districts. So, how does a person barely making enough to eat after paying bills manage to save enough for tuition, attend school while working 80 hrs/wk or support themselves & their family while they're in school instead of working??
The reality of today's economy is highly favorable to corporations exploiting its workers, thru anti-union, independent contractor "gig jobs", globalization & priortizing stock value instead of community & customers. People aren't lazy or demanding more than deserve, they want to be sufficiently compensated for their hard work that they can survive on their wages. When corporations are making $5 trillion/yr in profit but refuse to give workers making $7/hr a $0.50/hr wage increase that would only cost them $150 million/yr more, EVEN as their executives give themselves $300 million yearly bonuses on top of their multi-million dollar salaries, that tells just you how f'ed up it is. Greed is good & workers need to do more to get WAY less. If the economic strategy doesn't evolve to meet the current challenges then what else is there but to raise minimum wages — or watch the poverty, homelessness, crime, inequality & financial stability collapse the country & destabilize the world??
I think that it should be increased for adults and not for teens. If you’re supporting a family, then you need more than $7.25/hr, but if you’re in high school and you don’t have to pay a bunch of bills, then you don’t need a raise.
Here in brazil a new law has passed and now workers get around U$1 for hour in markets and fast foods businesses, before, with heavy regulation it was still bad but not like this, basically the most corrupt congress of all time together with a president with approval rate of less than 3% decided to make their people slaves to the multinacional companies.
The problem with cuddling the less fortunate is that they have the tendency to stay less fortunate when they are cuddled, adversity is what forces us to go forward without adversity humans will become weak ....
No one working for minimum wage should have a family to support. Each job should give skills to break past the minimum wage starting point and earn you points for a higher paycheck at the next job. Why should fat cat have to pay more than the knowledge needed for the mundane job. Our job in life is to keep learning and pushing others to keep challenging their mind and body.
Oh, this is probably stated a billion times in the comment section...
So raising the minimum wage is to benefit people...who are working at McDonald's and Wal-Mart...and have a family and house to maintain?
These are spoiled college kids you're defending. Not adults who have families to run.
Rich people love when you raise the minimum wage in America.
Raising the wage of a minimum wage McDonald employee, only cost the customer money, the customer being almost all middle class. We love to make the stereotype of the rich guy with his hordes of servants but rich people don't employ from the low class much. All you do when you rise the minimum wage is squeeze the middle class more.(the middle class which doesn't have their government advocating for raising their wage)
You had me until 5:15, yes the rich are getting richer but the poor are not getting poorer
At worst most are staying the same but it appears most (I'm around) are getting richer but not as much or as fast as the rich! All I have to do is go talk to my high school mates that still work at McD's... now in their 30's and ask to see their phones or ask them what the latest video game or movie the watched. They are better now and with more than 5, 10 years ago. (Too bad they won't get training for better jobs but hey if they are happy why should I care)
Why would you pay someone 15 dollars an hour for flipping hamburgers. Also big business want to increase minimum wage because they know that small business cant hire or afford that high of a wage. You wonder why that coffee shop down the street is so expensive compared to a franchise like starbucks or dunkin donuts. Its because of high wages and too many regulations
Johnny who works full time at McDonalds, who has a 2 children and a wife to take care of... Johnny who is retarded and makes bad life decisions. Who has kids while working at McDonalds??? That's his own fault. He should skill up. Not expect other people to give him money for nothing.
If Johnny has a wife and two kids, why doesn't he try to get a higher paying job than McDonalds? I know there's a lot of factors in that, but I see soooooo many people who are perfectly capable of moving up, that just insist on working their minimum wage job.
The best solution would be a minimum wage that varies based on industry, region, and sector. Additionally, schools need to place a higher emphasis on economics and finances so that kids know what they are getting into, and can potentially negotiate a higher wage.
I don't think raising MW works on a national scale. But is effective at a city government level. If Atlanta wanted to raise minimum wage and create a labor market that would attract skilled workers at entry levels, that wouldn't affect a nearby agricultural community who needs cheaper unskilled labor to minimize the impact on food costs. City emphasis would take into account the better aspects of Capitalism while avoided some of the more toxic elements of an unrestricted freemarket.
Ehh...bit questionable on this argument, if you have minimum wage and increse it, not only it will cost the owner runing his or her business but also risk losing workers, simply for not affording to pay them. Personly, minimum wage to me isen't the best solution for capitalism and the free market, as it cost not only the owner but also the worker and customer.
I'm sorry but I must disagree with your argument, having regulations for The Society in the free market, would not help people in the long run, especially if the government are the ones that inflate the economy, making things more expensive than it needs to be.
When have we tried zero minimum wage in a Laissez Faire Capitalist environment? If WacMondles paid you 2$/hr, I could start a company and pay you 3$/hr and differ the cost. Simple as that. I would fight for workers to be successful. Also, working for someone is consensual. No one is putting a gun to their heads. Keynesian economics is stupid because it mostly addresses the issue, not the cause.
Brandon Everhardt the minimum wage should be in place to help out young, naive children. go look up a few videos on the subject, eh? thats your homework.
you are not entitled to making a better life than those who chose to put time and effort into earning a good job.
TL;DR: One of the study he cites has major problems with its methodology, which makes his conclusion pretty much unsupported.
Great video, but there is a major error in your argument. The most recent study about the Seattle minimum wage increase has major methodological flaws. It only accounts for the effects of the minimum wage increase on employers without multiple locations--that is, small businesses. It does not account for larger employers with multiple locations such as Walmart. This is important because small businesses are not as able to handle the increase and so they respond by replacing their inexperienced workers with fewer, more experienced workers. This leads to a reduction of hours and thus pay for low wage workers working for small businesses. The study only deals with the effect of the increase on these workers, so it finds a negative effect for the workers. The study did not cover the entire population of low wage workers in Seattle though, and so no conclusions can be drawn about the effects of the increase as a whole. However (and this has been hypothesized but not yet studied) some people think that as more experienced workers are hired by small employers, large employers have to hire less experienced workers--and because their productivity is lower, they will have to hire more of them. Thus many of those low wage workers that were laid off by the small businesses will be hired by the large ones. This would be consistent with most other minimum wage studies which find little or no impact on employment levels. This is a guess though, and more research is needed.
Essentially, it is important to look in to the methodology of the studies you are citing, and to look at what other researchers have to say about them. Also, it is a good idea to study the research in aggregate rather than proving your points with isolated studies that may or may not reflect the larger picture. In this case, your failure to do so has led you to a completely unsupported conclusion. I agree with you though when you say that "more research is needed."
Question: If I make more than the minimum wage say $20 dollars an hour (not my real salary) and the minimum wage is raised to $15 an hour, does my earnings lose buying power? Am I worse off as more people approach my wages at other jobs? (not an argument against changing the minimum wage, I am curious on your viewpoint)
You will, they increased minimum payment here in turkey from 800 to 1404 monthly, this raised inflation from %4 to almost %16, everything got very expensive and economy is in bad shape. Youth unemployment rate is almost %35, and overal its %15.
It has nothing to do with who picks food, or being an engineer or brain surgeon. It is supply and demand, you are paid exactly what your worth. If you are performing a job that a large amount of people can perform with minimum to no training you will not be paid much. If you are doing a job that requires a lot of training and skill to perform therefore there are few people that can do it you will be paid more.
two things aren't accounted for: and that's globalisation and self-sufficiency.
1. minimum wage in america doesn't mean m.wage globally, ERGO jobs go to china, nike cost 60c/hr. and that DEMAND of cheap shoes ENSLAVES other nations to work for cheap. not only do we lose our jobs to the cheaper work, but we are technically enslaving other nations, which has a moral arguement.
2. self-sufficiency: if a job is not paying you enough, you need to be able to say "i won't work" - aside from this naturally raising wages ( ie: if no one does it. again slaves come into play here) - but this also encourages people to be socially and economically responsible: no debts, save the house, good network of family and friends. and to skill up.
I would argue that the only effect of minimum wage is increase cost of locally produced goods, leading to cheaper off-shore; loss of jobs; and poor productive output. if someone could get by working at macdonalds till they are 40, why don't they? - ideally, those jobs should be left to young kids and etc, BECAUSE they are unskilled and don't require much. whereas minimum wage reduces pressure for people to learn,skill up, and find more and greater things to do.
I see 40-50-60yo people working at the grocerystore and I can't imagine how miserable their lives must be, but it is enough to "survive" and thus they take it while the kids can't.
minimum wage is simply just "giving a man more fish" instead of teaching him to fish.
The government should make sure people are paid fairly, the bigger the government the more corruption is possible, so the bigger the government the less fairly everybody is paid.
Solution: smaller government (aka, fuck the minimum wage)
Another solution: minimum INCOME, just give everyone the same amound of money every month as social security. Let the money be payed by taxing big companies (which doesn't happen that much) and taxing everybody the same percentage (so people are more willing to work hard and earn more money)
Hey i'm not extremely educated like most of the people on here but i'll give my 2 cents of what I think I know, please correct me if i'm wrong I hate looking stupid.
So let's say someone immigrated to the US when they were about 2 years old, they don't have papers and can't get them because they lack the money. I don't know too much about jobs but i've heard you need papers to work in most. Someone I know had to stop working at Togo's because they started asking for papers and they didn't have any, now they work at a laundromat for less. They work at 2 laundromats actually because they don't get paid too much. How would a person like that try to get out of the minimum wage jobs they're in?
Here is my 2 cents.
If you are working full time at minimum wage. Your wage should at minimum be able to have you live above the poverty line with consideration for 1 child but no spouse. This would ensure single parents have some protection.
However I don't think we should expect minimum wage to cover a family with 2 kids and only one working adult. Because that is just unreasonable. If you feel the best you can do is minimum wage than you should not be having multiple children.
Most of the time people are in poverty because of very stupid decisions like quitting high school, having a baby before marriage and working a minimum wage job. My cousin did that and now she's struggling being a single mom. And that's all HER fault. Stupid decisions. Businesses should not have to pay for people's stupid decisions.
I thought I'd never see the day where someone made a thought provoking video with reasonable evidence, arguments from both sides, and a whole heartedly non bias approach to their claim. I am stunned at your mere existence, you truly give me hope my dude. Keep it at!!!
Here's what I think, we shouldn't have a minimum wage, we should just strengthen labor laws so labor unions can increase wages through collective bargaining more effectively. Living wages isn't the same in every state, $13 an hour is a living wage in New Jersey while $11 an hour is a living wage in Florida. So establishing a federal minimum wage won't work as living wages varies from state to state. What should be done to address this issue is to make unionizing a constitutional right as well as collective bargaining. The Scandinavian Countries don't have a minimum wage because they're very unionized.
No minimum wage, if your going to exploit yourself it's your own fault. I also don't feel bad about the straw berrys and the shoes. the people who make them are part of poor countries. If they're government backs off they'll see a boom in wealth like south Korea.
If we try to stop that they'll just end up starving working in some field.
Minimum wage jobs are transitional or entry jobs not careers.
An idea that is never touched on i will throw out there, but it's just my thinking.
Having low minimum wage creates more competition for skilled jobs. In turn this ensures that the best qualified worker is doing the job, which helps grow the economy. If you made 20$ pouring coffee/flipping burgers or 23$ doing a labour intensive skilled trade many better qualified workers may take the other job because it's much easier, and less qualified will become skilled workers which may actually stunt growth.
the government should give me 100 trillion a year in benefits but tax me at 99% and all of their budget problems go away.... they could give the rest of you 4 grand a month and free education and housing, but due too the obamacare act you would still need insurance.
I'm interested in whether a Universal Basic Income might be a better alternative to a minimum wage as it doesn't directly press on small businesses (depending on how the taxes to fund it are allotted) and unlike working tax credits it isn't dependent on being in employment (thus that bargaining power that an employer has over a worker is reduced) and likewise it isn't dependent on unemployment (so it removes the poverty trap).
robtoe10 universal wage is just another name for welfare though. You are trying to say giving people free money makes people modivated to go out and get a job rather then sit on their ass and collect?
Poor remain poor and middle class become poor because they will be the ones paying for this.
This is something I've thought about too. As another commented posted minimum wage is actually an aggressive policy by the government forced upon businesses. If a business doesn't comply, they can be fined or shut down. But if we give a universal income that takes care of minimum wage and basically our welfare system.
Hmm. 10.50 x 10 = $105. That times 3 equals $315. 10.50 x 3 = $31.50. $315 plus $31.50 = $346.60. That's $346.60 each week. That times 10 equals $3,466. $3,466 times 5 = $17,330. Multiply weekly earnings by two, and you get $693.2. Add this number to $17,330 and you get the grand total of $18,023.2. Only $18,023.2 for the whole year. That is BAD. $30,000 annual earnings is recommended for a COUPLE. I'd still get a better job.
I have 30 employees. Some years their health insurance cost more then their wages since I pay all their insurance on their wife and kids even when they are layed off for the winter. I would have to take away their insurance to pay the $15 per hour.
I've watched several videos about Seattle's minimum wage, I really can't decide if it's good or bad. An artificially high minimum wage might attract employees from higher earning households and displace the people they are trying to help.
Minimum wage jobs is suppose to be a job you do to start your career or support your training for a career not become your primary job that you do from the day you start to work till the day you retire. Having a minimum wage just sets a minimum price for things produced within a country, if all products were locally produced then fine but if you compete with countries that doesn't have minimum wage you very quickly find that your local companies cannot compete or they decide to move all those minimum wage jobs to other countries or automate their business (See self-checkout and soon we'll be served by robots in fast food).
My solution to this is by giving employees a share in the company that they would be able to share in the profit that the company makes.
Suursteruim the only problem with that is that unions have opposed that for years to take a lower, but more predictable and stable wage. If the company doesn’t make much money in a month, the employees won’t either.
For all those working at Walmart or minimum wage jobs... you can learn a trade such as plumbing or become an electrician and make way more then minimum wage. Its such a high demand trade u will make at least 12-17 per hour during your slow time. No one has chains wrapped around your ankles to work at those minimum wage jobs.
Kay Realist thats the mentality someone not in the union has. Don't forget those that fought for us so we can have a decent living. We should fight for others to not have to live in poverty. Sounds like youre greedy.
If you like working at mc donalds cause u meet friends there and go clubbing by all means... I have nothing to say about such an argument. By the way, not all plumbers plumb all their lives. Many becomes business owners and hire employees to do the dirty work. I manage and own many properties and believe me most many make easy money. Your views are a little limited in your world that is all.
The reason plumbing pays so well is that it's shit work. Working on your knees, no social life, working all alone or possibly with a mate... whereas at McDonalds and other bars/restaurants, yeah the pay is shit, but you make friends and have a team to work with. I've made friends at these places, met girlfriends, I go to clubs after to work and do things... to me you're giving bad advice, I met plumbers and many of them are quite miserable people. But if you want to waste your life, go for it.
And btw you didn't even make an argument against minimum wage. You just gave unwanted advice thinking you know better when you don't.
I will throw in my two cents, because I hear the phrase "learn a trade!" get thrown around a lot, with little considerations for the necessary lifestyle of tradework (in America).
Electricians, duct workers, sprinkler fitters, boiler makers, steam fitters, pipe fitters, (some) plumbers (some) carpenters, iron workers, welders, etc., many of these trades need to travel the country to find regular, reasonably paying work. Yes, you have your local Bob the Plumber who you can call to unclog your sink, but those kinds of jobs often reach an early saturation point (a town can only support so many plumbers that service only the citizens of that town). Most of these trades have to chase major construction/shutdown/retrofitting jobs around the country to not only get better money, but also regular money.
If you were to wake up tomorrow and decide 'I want to be a welder' (assuming that you aren't just for the purposes of the conversation), then you could attend the relevant school, achieve an apprenticeship, and be out and welding within 3 years time. If you wanted to be someone who comes home every night to the family, then count on not working a whole lot. Jobs that you will be able to contract your skilled trade to are not constant in a given area. Sure, some areas are more productive than others, i.e. rapidly expanding cities, but that is the best case scenario, and those good times do not last forever.
Skilled trades can be very reward careers, in many aspects, but they are often difficult to raise families with and also discouraging towards establishing any kind of roots anywhere.
Source: someone who grew up in a steamfitter family.
TL;DR: wanna see the USA, then piss off your BA!
There are many stories of how people adjust when they immigrate. As for me, I came to the united states when i was 4 years old after waiting 8 years to get approved for green card. My parents paid for all documentation prior to immigrating. Saved a little less then $1000 cash in hand and left their country for a chance at the american dream. Once we arrived my parents worked minimum wage jobs and lived in a very cheap apartment for well over 15-20 years. We struggled but our family never stopped trying. The sad part is although my parents were never divorced but I grew up feeling like I rarely got to spend time with my parents. They left for work at 7am and usually came home around 7-8pm. As for me, they were the most strict passive parents and disciplined me aggressively but lovingly. How did I turn out? I am now in my mid 30's and in the top 96% wealthy in my age group. I am thankful although it was difficult.
I noticed a lot of Libertarians seem to appeal to abstract ideology at the expense of sound judgement. You say "this violates the non-aggression principle, therefore it's bad", while everyone else is thinking why do you want the freedom to pay someone $2 an hour?
Thought Monkey excuse me i know this is unrelated what if their was a state bank? to go further in what I'm saying is the abolition of commercial banks, people borrow around 2.5 trillion dollars from commercial banks every year for things like paying mortgages, buying a car, investment loans etc... what if all the money that goes into the banks were tax dollars 2.5 trillion dollars worth of tax dollars to state ran banks with an additional 500 billion dollars just in case their are more borrowers, the money supply/intrest rate for each bank would depend on the area they are in the state/ County will be in charge of this. also companies like Microsoft would have business cards that every worker will fill out including the ceo, these cards go to the bank to see how much money they earned the company will give the bank the money it needs to pay its workers destroy the old money and make new money which is then deposited to the workers a.k.a atms. so are money will be backed by old money, also to keep inflation going workers would also be given printed dollars the fed printed about 500 billion dollars last year so every worker in america would receive about 200 to 250 printed dollars a month so money can still flow in the economy the fed decides how much inflation their should be each month, what you think?
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