Biden seeking a $15 an hour minimum wage in his Covid relief proposal (1 Viewer)

[Incumbent]

If there’s already a Biden economy thread, I can add this there. It could have gone in the Covid thread, but the impact of this would extend well beyond that topic.

Well past time to raise the minimum wage, which hasn’t been increased since 2009.

Biden to seek $15 minimum wage in COVID-19 proposal

President-elect Joe Biden will include a proposal to raise the federal minimum wage to $15 as part of a COVID-19 relief package, the first major legislation of his presidency.Biden is expected to a…

thehill.com

 

[Dragon]

TBH I don't understand the need for UBI or government assistance through taxation of employers, It is far better IMHO to have a minimum wage allowing for people to have a modest living with roof over their heads and food on the table. It is better for society as a whole, Rather living wages that gives people the dignity and respect that everyone should be afforded who works full time to support their families than a subsistance wage that labels people "poor" even though they may end up with the same amount after UBI or government assistance.

 

[JRad]

but when you need to pay your bills I get it that an extra $1-2 an hour makes a big difference.

Oh absolutely - twenty-something me would have jumped on that $1-2 without a second thought. 37 year old me wouldn't dream of leaving behind my current benefits.

 

[Goatman saint]

Don’t worry guys. It will be
Like the student loan write off. Get in those 32 and under voters then hose them. Learn politics children. No one cares about you so long as the corporate handlers are happy

 

[zztop]

Republican plan would raise minimum wage to $10 but only if businesses are required to ensure worker legality

Congress hasn’t raised the federal minimum wage, currently $7.25 an hour, since 2007, although polls show Americans overwhelmingly favor an increase.

www.usatoday.com

Republican Sens. Mitt Romney and Tom Cotton are proposing to raise the federal minimum wage to $10, but only if businesses are required to use the internet-based E-Verify system designed to prevent employers from hiring undocumented workers.

 

[Killer Clouds]

Raising minimum wage only hurts the lower levels of wage earners. When minimum wage is raised artificially it raises the cost of everything.

 

[RobF]

Raising minimum wage only hurts the lower levels of wage earners. When minimum wage is raised artificially it raises the cost of everything.

Consider if the minimum wage was lower instead. If the lower levels of wage earners earned $1 an hour instead of $7.25, the cost of things might drop, but would they have more buying power overall, or less?

Obviously much less. It's just not the case that raising minimum wages doesn't mean more buying power for the lower earners.

 

[MT15]

Raising minimum wage only hurts the lower levels of wage earners. When minimum wage is raised artificially it raises the cost of everything.

I’ve always heard this, this is conventional wisdom for some. Where I live, the fast food chains are advertising $13 an hour. So the increase has already been baked in.

Who is actually being paid $7.25/hour? I don’t know any jobs around me that pay that. This is a genuine question, not trying to make a point. Does anyone only earn $7.25?

 

[Saint by the Bay]

Raising minimum wage only hurts the lower levels of wage earners. When minimum wage is raised artificially it raises the cost of everything.

If your income increases 50%, and the cost of goods increases 15% you are still much better off.

 

[DaveXA]

If your income increases 50%, and the cost of goods increases 15% you are still much better off.

And while I agree, the problem lies with those who are already making $15/hour. I don't think they'll be getting raises for a bit, so they're going to see that 15% increase in costs without the requisite 15% pay bump. Those in the $15-$20 range are going to be in a bit of a pinch until wages adjust.

That said, a stepped up minimum wage over a period of time can offset that to some degree.

 

[Killer Clouds]

Consider if the minimum wage was lower instead. If the lower levels of wage earners earned $1 an hour instead of $7.25, the cost of things might drop, but would they have more buying power overall, or less?

Obviously much less. It's just not the case that raising minimum wages doesn't mean more buying power for the lower earners.

It absolutely does. When the cost of everything raises and jobs are lost it affects buying power. When businesses close it also affects the economy.

 

[Saint by the Bay]

And while I agree, the problem lies with those who are already making $15/hour. I don't think they'll be getting raises for a bit, so they're going to see that 15% increase in costs without the requisite 15% pay bump. Those in the $15-$20 range are going to be in a bit of a pinch until wages adjust.

That said, a stepped up minimum wage over a period of time can offset that to some degree.

The theory is that if minimum wage goes up to $15 then all positions in the poor and working-class range will have to rise as well. If the floor is $15 you have to pay skilled workers more than that.

For example, the average pay for agricultural equipment operators is currently $15 an hour. If the guy who doesn't have the skills to operate the equipment is making $15 for doing unskilled labor on the farm, you have to pay that equipment operator more.

It's the rising tide lifts all boats approach.

 

[MT15]

Yes, and after what, at least twenty years of stagnation in wages it’s high time this was addressed.

 

[Killer Clouds]

I’ve always heard this, this is conventional wisdom for some. Where I live, the fast food chains are advertising $13 an hour. So the increase has already been baked in.

Who is actually being paid $7.25/hour? I don’t know any jobs around me that pay that. This is a genuine question, not trying to make a point. Does anyone only earn $7.25?

If the area you live in is paying $13 an hour then that's what it can support. The business that is only paying 7.25 would have problems finding people to work for that. People have s choice on how much they are willing to work for. The market should set the wages. The government should keep it nose out of where it doesn't belong.

 

[DaveXA]

The theory is that if minimum wage goes up to $15 then all positions in the poor and working-class range will have to rise as well. If the floor is $15 you have to pay skilled workers more than that.

For example, the average pay for agricultural equipment operators is currently $15 an hour. If the guy who doesn't have the skills to operate the equipment is making $15 for doing unskilled labor on the farm, you have to pay that equipment operator more.

It's the rising tide lifts all boats approach.

I agree. I'm just saying there will be people who don't benefit from that rising tide, at least temporarily. It will work itself out, but that will take months, and maybe even years to shake out.

 

[Killer Clouds]

If your income increases 50%, and the cost of goods increases 15% you are still much better off.

Increases will be more than 15% . Even at only 15% nobody will be better off. It's not only the cost of goods that rise. The cost of everything goes up.

 

[MT15]

I went looking for viewpoints and quickly found an interview with an economics professor in Massachusetts who has studied minimum wage hikes and their effects. Dube is the economist.

“CORNISH: Can you give us an example? Meaning, is there a case study that can help us understand what happens to an economy when the minimum wage goes up to, let's say, this number, $15 an hour?

DUBE: Well, we have a number of states in the country now - California, Massachusetts, where I am - where the minimum wages have risen substantially over the past five years. At the same time, at least prior to the pandemic, we saw employers continuing to hire and continuing to do well and wages continuing to rise, including in low-wage sectors like restaurants. And the reason for that is employers have a number of different ways of adjusting when the minimum wage rises. One of them is passing it on as price increases to consumers. Maybe the burger costs 50 cents more, and middle and higher-income consumers end up helping pay for higher wages at the bottom. Another possible way of responding is that employers see reductions in turnover. And turnover is costly for businesses because you have to retrain and recruit workers. As these jobs become better, you end up seeing workers stick around longer. And that also helps defray some of the costs.

CORNISH: Can I come back to the price increase? Do things get more expensive for consumers in the places where the minimum wage has gone up?

DUBE: Prices definitely rise, but they rise very small amount when it comes to the overall inflation. And the reason for that is because minimum wage workers' earnings are a really small part of the overall economy because they're the lowest paid workers. So you're not going to really notice overall price increases, even when minimum wage rises quite a bit. But it does mean that those small increases nonetheless help absorb the cost increases for low-wage employers.”

Here is the link:

This certainly isn’t an in-depth look, and it included some quotes from small business owners who don’t want the minimum wage to increase. It’s important to realize it will be incremental, though, and take 4? years to reach $15.

IMO, you have to pay people enough to live. People shouldn’t work full time and not make enough money to live an independent life.

 

[Killer Clouds]

This is the Democrat idea of prosperity. Instead of letting people work and rise it's much easier to bring everyone down to the lowest common denominator.

 

[MT15]

You know, not everyone who supports raising the minimum wage is a democrat. And not everyone who opposes raising it is a Republican. There’s a lot more nuance than that.