Maple Leaf Angus said:I don't believe in minimum wage. Do you?
agman said:I do believe in the minimum wage. In fact, I believe it should be raised.
SASH said:The problem with increasing minimum wage is that it is directly inflationary. Costs for materials and labor are usually marked up on a percentage basis so increasing wages just makes goods and services more expensive lowering everyone's standard of living.
agman said:SASH said:The problem with increasing minimum wage is that it is directly inflationary. Costs for materials and labor are usually marked up on a percentage basis so increasing wages just makes goods and services more expensive lowering everyone's standard of living.
Inflation declined following the last minimum wage increase. How do you figure? Do you think that perhaps productivity increases sufficiently to offset the the direct impact of increased wages?
agman said:Maple Leaf Angus said:I don't believe in minimum wage. Do you?
I do believe in the minimum wage. In fact, I believe it should be raised. Remember, that people in that income strata spend virtually every dime. They are eager to move up the protein ladder on which beef is perched at the top. If there is no income there is NO BEEF. Increasing real incomes at the the lowest income strata was paramount in stemming the decline in beef demand in the late 1990's after 19 years of decline.
MRJ said:Agman, isn't the purpose of the minimum wage supposed to be as an entry level wage?
It seems to me if it is too high, that will discourage hiring people who are maybe lacking in skills and need "practice" so to speak.
Or those who are simply not capable or willing to do the work in a way that makes them a valued employee at the wage that is required.
I can see your point, by worry about the downside, too.
What if an employee can't generate the income for the company to cover their own wage?Paying eveyone a "living wage" is a nice idea, but not every employee can do an adequate job to pay their way in that scenario, IMO.
You are correct, the minimum wage is just a starting point. If you only looked at the cost side of the ledger I would agree with you. But the benefits on the demand side are a multiple of the wage increase as the derived profits recirculate throughout the economy. Have a great day.
agman said:.Sash:So prices went down after the last minimum wage increase. I don't think so. How long of a period after are you talking about? It takes awhile for those increases to be reflected due to existing inventories.
Response: You said increased minimum wages was inflationary. I said empirical evidence does not support your view. We have had three minimum wage increases since 1990. Not one caused inflation to increase. I believe 15 years is enough time for the impact of higher wages to filter though the system, don't you? You did not answer my point on productivity gains - why? Productivity gains can offset the cost of wage increases. You also failed to address the real benefit to agriculture of a minumum wage increase.