At Work

Are you for …

a higher minimum wage, expanded unionization and more manufacturing brought back to the US; perhaps even tariffs on imported goods?

If you are unskilled and earning a minimum wage, want union representation or lost a job to outsourcing, you may benefit from the above. 

For every American the above to one extent or another, means higher prices for goods and services,  possibly the unavailability of certain products, fewer jobs, and lower corporate earnings which affect stock prices and in turn affect retirement and other investment returns and investor dividends. 

The fact is I don’t think anyone knows the full impact of such changes, but it is not reasonable to think you can change one part of the equation for the good without counterbalancing consequences … is it?

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Categories: At Work, My Opinion, Politics

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5 replies »

  1. Sorry, sounds like a recipe for re-implementing the 1950’s
    (1) A higher minimum wage (in inflation adjusted terms – March 1956, $1.00/hour (nominal), equivalent to $8.49 (2013 dollars), increasing to $1.60 in February 1968, equivalent to $10.69 (2013 dollars), steadily declining to today’s $7.25),
    (2) Expanded unionization (returning from today’s ~12% of all wage and salary workers to 1955’s 33% of all wage and salary workers), and
    (3) More manufacturing (~16MM workers in 1955, to a high of ~19MM workers in 1980, down to < 12MM workers in 2014).

    No thanks! Only idiots like Bernie and Hillary want to reduce American's standard of living back to 1950's levels. Their concept their strategy for reducing inequality is for all of us to be at a lower standard of living.

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  2. Raising the minimum wage will only drive more unskilled jobs overseas and a few more of the skilled jobs. There is plenty of unskilled labor in the world. Thanks to the easy of international travel and shipping in the modern world, the global economy for right or wrong, is lowering the wages of all the counties to the lowest paid worker in the world. When you have to sell cheap to WalMart you must lower labor costs and you can search the world for cheap labor and still make a profit even after shipping your product half way around the world. You know things are bad when Chinese labor is too expensive and they are losing jobs to other counties.

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    • Dwayne you are wrong, most minimum wage jobs are in retail or fast food, you cannot export those type of jobs.
      Any jobs that require a skill set like manufacturing are a higher skill set and have always been paid above minimum wage.
      Many studies show very little if any rise in overall prices just because minimum wage is higher.
      The Department of Labor says a review of 64 studies on minimum wage increases found no noticeable effect on employment. More than 600 economists have signed a letter in support of raising the federal minimum wage to $10.10 by 2016.
      Fact: A 2014 poll by the American Sustainable Business Council found that 61 percent of small business owners surveyed said they support a gradual increase in the federal minimum wage by 2016. They also favor yearly adjustments to the minimum to keep pace with inflation.
      More than 50 percent of the owners agreed that increasing the minimum wage would help the economy and increase consumer spending power.They also agreed it would lower employee turnover and increase productivity, as well as, customer satisfaction.

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      • Gradually going to $10.10 is one thing, going to $15.00 as many on the left want is quite another because it bumps up against many more workers in America. First year teachers in a few states for example.

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  3. I still believe raising the minimum wage is like watching what happens when you float you boat in water and then the tide or lake raises the end result every time is the boat raises – so will the cost of all goods and services if the minimum wages keep going up. In order to make realize a net gain, you must have some counter balance to have that raise in pay be a realistic raise. Either taxes must be reduced or goods and services have to remain unchanged and neither of those will ever come about.

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