YoungConserv
DP Veteran
- Joined
- May 13, 2012
- Messages
- 3,083
- Reaction score
- 601
- Gender
- Male
- Political Leaning
- Conservative
What are you guys thoughts on this?
but increasing the minimum wage leads to increased prices so that's not sustainable.I disagree. Talking about an absurd $100 minimum wage just avoids the reality that as the purchasing power of a dollar declines, the wages need to increase by a corresponding amount just to maintain current demand in the economy for goods and services. While I disagree with fiscal policies based upon consumerism, that is what we have. Without increases in wages, the economy will continue to shed jobs. It is just a matter of finding the right point.
but increasing the minimum wage leads to increased prices so that's not sustainable.
but increasing the minimum wage leads to increased prices so that's not sustainable.
There's a hell of a lot more involved than just this. The problem with the video is it is far too simplistic. There are countries with high minimum wages that have lower unemployment than countries with a low minimum wage, the economical effects of a minimum wage are greater than what's presented in a single biased video.
Then why don't these high minimum wage countries have a higher GDP than us.
Why don't countries with a lower minimum wage have a higher GDP than you?
Because their not in our leauge.
right so compare high minimum wage European states to the us and you'll see we are miles ahead.Right, so to compare GDP and minimum wage, you need to find another country with a large land area, large population, long history of political stability and the ability to militarily back up its economic interests, and that has a higher minimum wage.
What are you guys thoughts on this?
it assumes that labor is the only cost, therefore prices would rise at the rate of labor increases, which is false.
right so compare high minimum wage European states to the us and you'll see we are miles ahead.
It just points out the fallacy that minimum wage doesn't hurt the economy as if it didn't why wouldn't we raise it to a 100?Was there a point to this video? That if we force everybody to pay $100 an hour it will cause unemployment? Do ya suppose?
The minimum wage is $7.25, which is actually $92.75 cheaper.
Sigh.©
It just points out the fallacy that minimum wage doesn't hurt the economy as if it didn't why wouldn't we raise it to a 100?
First of all, no I don't think it assumes labor is the only cost. Second, how is that false? Labor is a cost, and prices do what covers costs. Just because some other cost could hypothetically decrease does not change the effect an increased operating cost has on prices.
See the problems with using per capita statistics when talking about economics it ignores problems of scale.Ok, let's take Luxembourg, minimum wage of 13.86 USD an hour (second highest minimum wage), highest GDP per capita in the world.
It just points out the fallacy that minimum wage doesn't hurt the economy as if it didn't why wouldn't we raise it to a 100?
It just points out the fallacy that minimum wage doesn't hurt the economy as if it didn't why wouldn't we raise it to a 100?
Because the video assumes that increasing labor costs mean a matching increase in goods/services cost. Without that matching increase, those who get higher wages from a minimum wage increase do in fact benefit with higher spending power. In point of fact, increases labor costs increase the end product/service cost, but not at a one to one ratio.
They only have increased buying power until the prices catch up and bring them right back to where they started.Because the video assumes that increasing labor costs mean a matching increase in goods/services cost. Without that matching increase, those who get higher wages from a minimum wage increase do in fact benefit with higher spending power. In point of fact, increases labor costs increase the end product/service cost, but not at a one to one ratio.
See the problems with using per capita statistics when talking about economics it ignores problems of scale.