Henry Blodget asks why pay people so little?

[Throckmorton]

If $16 per hour is good then $100 per hour would be even better.

So if the minimum wage was more than doubled to become $16 per hour, you don't think almost everyone else's wage would also soon be raised ?

At what dollar amount could the minimum wage be raised and not cause price increases of everything?

At what dollar amount could the minimum wage be raised before they are just being paid too much?

We need workers' wages to raise. Income has gone down over the last 30 years, except for the super rich. Companies can pay their execs less and pay the rest of their workers more, easily. There would be no price increases, it would just be a more balanced distribution of the same total wages.


In Australia, where every worker at McDonald's is paid $16.62, the price of a Big Mac was $4.88 in 2011
http://www.oanda.com/currency/big-mac-index

 

[Londo_Jowo]

That's physically impossible... Without a lot more dollars in the economy. It would require raising almost everybody's wages.

A living wage at the same level as Australia's, $16.62, wouldn't require more dollars, just more of them going to the low level workers and less to the ones at the top.

Should also adopt the higher tax rates too? Tax on an individual basis, no family status? VAT?

You don't think these higher wages won't cause inflation?

 

[sandorski]

If $16 per hour is good then $100 per hour would be even better.

So if the minimum wage was more than doubled to become $16 per hour, you don't think almost everyone else's wage would also soon be raised ?

At what dollar amount could the minimum wage be raised and not cause price increases of everything?

At what dollar amount could the minimum wage be raised before they are just being paid too much?

😵

 

[Throckmorton]

Should also adopt the higher tax rates too? Tax on an individual basis, no family status? VAT?

You don't think these higher wages won't cause inflation?

Considering a Big Mac costs the same in Australia as Canada, and less than Brazil, no it won't cause inflation of prices from big companies. It will just require that more profits go to workers, or that high level exec pay be redistributed to workers.

For small businesses where profits are low and the owner is not paid much, yes, but that's a fraction of low wage employers.

Or are you arguing for keeping people poor because if they don't have enough money to buy things without government assistance, that somehow reduces inflation?


And yes, let's adopt higher tax rates and provide universal healthcare and the other services that Australia provides.

 

[JSt0rm]

fuck it. Lets go 3rd world. I bet 90% of you would be FUCKED. I'll take my eggs over easy and I want them in bed at 6am.

 

[bfdd]

You cannot end suffering. That's an illusion for ideal idiots. It doesn't matter how much you take from everyone, suffering will always exist because suffering is life. Seriously if you aren't willing to stand up and try to take care of yourself and get what you want in life, why should I help you at all? You're worthless to me and society.

 

[JSt0rm]

You cannot end suffering. That's an illusion for ideal idiots. It doesn't matter how much you take from everyone, suffering will always exist because suffering is life. Seriously if you aren't willing to stand up and try to take care of yourself and get what you want in life, why should I help you at all? You're worthless to me and society.

But the ideal of doing for yourself is based in the old america. If you look at a modern 3rd world country you will see those with stuff and those without. Those without will never have anything. Thats why those countries are 3rd world. The majority of human history has been 3rd world and the last 200 years have been a anomaly.

 

[Throckmorton]

You cannot end suffering. That's an illusion for ideal idiots. It doesn't matter how much you take from everyone, suffering will always exist because suffering is life. Seriously if you aren't willing to stand up and try to take care of yourself and get what you want in life, why should I help you at all? You're worthless to me and society.

Why should someone working 40 hours a week be suffering for lack of enough money to just get by? That's insane. Just stop and think about it. This is America.

 

[Veliko]

The problem is that living wage varies from person to person. A teen can live on $2/h. A single parent with 2 kids would need more like $20 per hour. This is why other first world nations tend to socialize things that make up the cost difference. Education is a big burden for anyone who has kids, so education is ~free. Day care is a burden for people with kids, so day care is ~free in some countries. Once all of that stuff is taken care of, everyone needs roughly the same living wage, and $7/h is enough to cover it.

Setting the minimum wage to $20/h creates a whole new set of problems. Suddenly you have this enormous gap where teens who can find a job are driving BMWs and single parents can't even afford a car because their kids daycare eats half their pay check. Socialism is supposed to make people more equal, and that is not accomplished by raising all wages.

The problems we have at the moment are with the directors at the top getting large percentage wage increases whilst the people lower down in the chain get below inflation wage increases.

Higher pay doesn't mean richer. A farm boy making $10 in the middle of nowhere has a lot more money than a guy making $20 in NYC. Here in Edmonton, the cheapest crack apartment you can possibly find is about $750/month. Out in assfuck nowhere you can live for peanuts.

Higher pay doesn't mean richer? Seriously? How on earth do you work that out?

 

[Veliko]

You cannot end suffering. That's an illusion for ideal idiots. It doesn't matter how much you take from everyone, suffering will always exist because suffering is life. Seriously if you aren't willing to stand up and try to take care of yourself and get what you want in life, why should I help you at all? You're worthless to me and society.

Who said anything about ending it? It's about reducing it.

 

[dmcowen674]

The problems we have at the moment are with the directors at the top getting large percentage wage increases whilst the people lower down in the chain get below inflation wage increases.

This

Exactly on point.

I can't say I have not gotten a raise but 25 cents or 36 cents, come on.

What's happened is the only way to get a real raise for those below Director levels is to change jobs.

 

[dmcowen674]

BTW, Australia has a living wage law, and their economy is doing fine. It's $16.62/hr (15.51 AUD)

That's right, even McDonald's in Australia pays $16.62/hr. And they're making a profit, otherwise they wouldn't have restaurants there.

I agree

Minimum wage is obviously abused.

It originally was meant for teenagers still in school to not be taken advantage of but now has become standard for paying everyone below Management level.

Change it to Living wage.

 

[dmcowen674]

The problem is that living wage varies from person to person. A teen can live on $2/h. A single parent with 2 kids would need more like $20 per hour. This is why other first world nations tend to socialize things that make up the cost difference. Education is a big burden for anyone who has kids, so education is ~free. Day care is a burden for people with kids, so day care is ~free in some countries. Once all of that stuff is taken care of, everyone needs roughly the same living wage, and $7/h is enough to cover it.

Setting the minimum wage to $20/h creates a whole new set of problems. Suddenly you have this enormous gap where teens who can find a job are driving BMWs and single parents can't even afford a car because their kids daycare eats half their pay check. Socialism is supposed to make people more equal, and that is not accomplished by raising all wages.

Higher pay doesn't mean richer. A farm boy making $10 in the middle of nowhere has a lot more money than a guy making $20 in NYC. Here in Edmonton, the cheapest crack apartment you can possibly find is about $750/month. Out in assfuck nowhere you can live for peanuts.

The same problem exists for minimum wage.

Possible solution could be two.

One for Urban and the other Rural.

 

[Londo_Jowo]

Considering a Big Mac costs the same in Australia as Canada, and less than Brazil, no it won't cause inflation of prices from big companies. It will just require that more profits go to workers, or that high level exec pay be redistributed to workers.

For small businesses where profits are low and the owner is not paid much, yes, but that's a fraction of low wage employers.

Or are you arguing for keeping people poor because if they don't have enough money to buy things without government assistance, that somehow reduces inflation?


And yes, let's adopt higher tax rates and provide universal healthcare and the other services that Australia provides.

[Paul Harvey]

Now for the rest of the story.

Here's the wages that the young work force receive. These will be the people that make up the major portion of McDonald's workforce.

http://www.fairwork.gov.au/pay/national-minimum-wage/pages/default.aspx
National minimum wages for apprentices, juniors & trainees

Special national minimum wages have also been set for trainees, apprentices and juniors who are not covered by any other award or agreement. These apply from the first pay period on or after 1 July 2011.
For junior employees, the minimum rates are:

• Under 16 years of age $5.71
• At 16 years of age $7.34
• At 17 years of age $8.96
• At 18 years of age $10.59
• At 19 years of age $12.80
• At 20 years of age $15.15.

McDonald's prices in Australia are 20% higher that in the US. So that blows your it doesn't cost more to provide higher wages out the window.


http://www.oanda.com/currency/big-mac-index

For apprentices, the rates are:

• Year 1 of apprenticeship $9.93
• Year 2 of apprenticeship $11.74
• Year 3 of apprenticeship $14.45
• Year 4 of apprenticeship $17.16.

Even the unions don't pay those in the apprentice program living wage level until their 4th year.

[/Paul Harvey]

 

[Londo_Jowo]

fuck it. Lets go 3rd world. I bet 90% of you would be FUCKED. I'll take my eggs over easy and I want them in bed at 6am.

Obviously you've never been to a 3rd world country as your industry will be fucked the worst. People in 3rd world countries don't spend their money on the entertainment industry, they download pirated copies of movies/music or do without. I can see you begging outside a McD's or Walmart in your 3rd world America.

 

[SagaLore]

American companies can pay below poverty level for unskilled labor because the Taxpayer picks up the tab on everything else.

ie: we tax payers pay for food stamps, medicaid,welfare,etc.. so that they can pay shit wages and the difference is picked up by the taxpayer.

more Lemon Socialist policies of the US.

Most people I've known that take advantage of food stamps and welfare also don't work. Most people I've known who work at Walmart or Target also work their butts off to make enough in hourly wages to support their family. Your statements contradict themselves when you take reality in account.

 

[the DRIZZLE]

There are around 4.3 million people in the US who earn minimum wage. 49% of them of are below 24 years old.

http://politicalcalculations.blogspot.com/2011/03/visualizing-characteristics-of-minimum_10.html

Of the 2.2 million that are older than 24 I'm sure a fair percentage have upward mobility so won't be making that much for long. This is another problem that doesn't need solving.

 

[Hayabusa Rider]

Regardless of wages hes wrong about a service industry economy. If we produce goods that other nations want then our economy has value. "I'll trade you cheap plastic crap for a burger" doesn't.

 

[Matt1970]

People are given every opportunity in the world to get an education. If you chose not accept it or refuse to even get into a skilled trade, than don’t bitch about the outcome.

 

[Veliko]

People are given every opportunity in the world to get an education. If you chose not accept it or refuse to even get into a skilled trade, than don’t bitch about the outcome.

You are missing the point entirely. There are educated and skilled people who are out of work or earning very little.

They are having to put up with the rising cost of living and wage cuts whilst the people at the top of the chain get richer and richer.

 

[Londo_Jowo]

You are missing the point entirely. There are educated and skilled people who are out of work or earning very little.

They are having to put up with the rising cost of living and wage cuts whilst the people at the top of the chain get richer and richer.

So raising wages is going to put these people back to work eh?

Do you think that increasing wages won't cause the cost of living to increase?

 

[Veliko]

So raising wages is going to put these people back to work eh?

Do you think that increasing wages won't cause the cost of living to increase?

Again, you spectacularly miss the point.

People are being made redundant and having to put up with wage cuts due to the downturn in the economy. Yet they see their directors getting pay rises and bonuses.

If wage increases are such a bad thing why are the people at the top dolling thousands and millions out amongst themselves?

 

[Londo_Jowo]

Again, you spectacularly miss the point.

People are being made redundant and having to put up with wage cuts due to the downturn in the economy. Yet they see their directors getting pay rises and bonuses.

If wage increases are such a bad thing why are the people at the top dolling thousands and millions out amongst themselves?

So please explain how increasing wages is going to put more people back to work

Also how will the cost of living not be affected by a wage increase?

 

[Veliko]

So please explain how increasing wages is going to put more people back to work

Also how will the cost of living not be affected by a wage increase?

What on earth are you talking about? Which part of what I typed have you failed to understand?

Are you agreeing with me or disagreeing with me? Which parts specifically?

 

[Londo_Jowo]

What on earth are you talking about? Which part of what I typed have you failed to understand?

Are you agreeing with me or disagreeing with me? Which parts specifically?

You are missing the point entirely. There are educated and skilled people who are out of work or earning very little.

They are having to put up with the rising cost of living and wage cuts whilst the people at the top of the chain get richer and richer.

How is raising wages going to help people get back to work or not having their hours reduced.

How can the cost of living not be increased due to worker wages increasing?

If you think that the companies will just absorb the additional overhead you need to go start you own business and run it into the ground.