Is my minimum wage logic correct?

[mikegg]

Higher minimum wage = higher cost to create goods and services = less competitive goods and services = less exports to rest of the world = less domestic jobs

If Cost to make cell phone case:

United States: $1
China: $.05

Then ability to export cell phone case:

United States: 0
China: 1

Jobs to make cell phone case:

United States: 0
China: 1

----------------

If $15 minimum wage:

Cost to make goods and services go up: Yes
Ability to export: Down
Jobs: Less

True?

 

[AyashiKaibutsu]

That's always been problem. It's generally been solved by protected our worker pools from outside ones that could run at slave wages; not by keeping our wages at slave wages.

If the minimum wage goes up (within reason) the buying power of the lower class goes up too... We get a better internal economy in the long run.

Also, mind you that no one in power is arguing for a 15$ federal minimum wage. 9-10$ seems to be the figures thrown around.

 

[sandorski]

Is your local McDonalds and Walmart Exporting lots of Goods?

 

[mikegg]

Is your local McDonalds and Walmart Exporting lots of Goods?

Minimum wage doesn't just affect McDonalds and Walmart, right? Unless, I'm wrong and totally deceived, minimum wage affects all minimum wage jobs.

 

[Rakehellion]

Payroll is a smal fraction of the budget for companies who are making billions in profits anyway.

And unless everyone on minimum wage is saving money under the mattress, it'll get spent anyway increasing profits further.

 

[mikegg]

That's always been problem. It's generally been solved by protected our worker pools from outside ones that could run at slave wages; not by keeping our wages at slave wages.

If the minimum wage goes up (within reason) the buying power of the lower class goes up too... We get a better internal economy in the long run.

Also, mind you that no one in power is arguing for a 15$ federal minimum wage. 9-10$ seems to be the figures thrown around.

Agreed that purchasing power would be the same if minimum wage is higher. My focus here is our ability to export goods and services which is the hallmark of a strong economy in globalization.

 

[sandorski]

Minimum wage doesn't just affect McDonalds and Walmart, right? Unless, I'm wrong and totally deceived, minimum wage affects all minimum wage jobs.

Manufacturing Jobs are not Minimum Wage Jobs.

 

[mikegg]

Payroll is a smal fraction of the budget for companies who are making billions in profits anyway.

And unless everyone on minimum wage is saving money under the mattress, it'll get spent anyway increasing profits further.

We're talking about competing against other countries.

 

[mikegg]

Manufacturing Jobs are not Minimum Wage Jobs.

Nice try.

 

[sandorski]

Nice try.

They are not. About the only Minimum Wage Jobs you will find that are in Export is in the Agricultural sector.

 

[mikegg]

They are not. About the only Minimum Wage Jobs you will find that are in Export is in the Agricultural sector.

What exactly do you mean by manufacturing jobs? It's kind of vague. Should a well trained engine manufacturer be making minimum wage? Of course not.

Should a worker massing producing cell phone cases be working minimum? Maybe.

Anyway, that's not the point. Again, my logic here implies that raising minimum wage will make us less competitive in the world stage.

 

[Lithium381]

Payroll is a smal fraction of the budget for companies who are making billions in profits anyway.

And unless everyone on minimum wage is saving money under the mattress, it'll get spent anyway increasing profits further.

And the ones that aren't making billions in profits anyway?

 

[lxskllr]

That's an overly simplistic view. Wages are a factor, but not the only factor.

 

[sandorski]

What exactly do you mean by manufacturing jobs? It's kind of vague. Should a well trained engine manufacturer be making minimum wage? Of course not.

Should a worker massing producing cell phone cases be working minimum? Maybe.

Anyway, that's not the point. Again, my logic here implies that raising minimum wage will make us less competitive in the world stage.

Not if the Minimum Wage Jobs are not competing in the Export Market.

 

[BudAshes]

What exactly do you mean by manufacturing jobs? It's kind of vague. Should a well trained engine manufacturer be making minimum wage? Of course not.

Should a worker massing producing cell phone cases be working minimum? Maybe.

Anyway, that's not the point. Again, my logic here implies that raising minimum wage will make us less competitive in the world stage.

"Less competitive on the world stage" is a meaningless line. We don't want to compete with china in manufacturing cheap crap. What we want is to be is on the cutting edge in science and technology, to have an abundance of natural resources, and to have an educated, motivated work force. In case you hadn't noticed the "global economy" is mostly just a farce. All that really matters are the things I mentioned above and your ability to protect them and nurture them for the future.

Honestly though, you seem pretty stupid from your posts in this thread, so I have a feeling this will go right over your head.

 

[Zstream]

"Less competitive on the world stage" is a meaningless line. We don't want to compete with china in manufacturing cheap crap. What we want is to be is on the cutting edge in science and technology, to have an abundance of natural resources, and to have an educated, motivated work force. In case you hadn't noticed the "global economy" is mostly just a farce. All that really matters are the things I mentioned above and your ability to protect them and nurture them for the future.





Honestly though, you seem pretty stupid from your posts in this thread, so I have a feeling this will go right over your head.

No. Apparently it went over yours. There are millions of people who do not have the inherent ability to be in cutting edge technologies. Not everyone is equal! However, everyone needs to be treated fairly.

 

[mikeford]

Minimum wage sets the lower limit on who a company can afford to hire until the number of jobs exceeds the labor pool. Those with less ability, less skills, less education, less motivation to work will find no jobs and/or lose the jobs they have now.

Effect on exports not so much, we export things from high skill workers, as we have no jobs for lower skilled workers due to existing minimum wage laws.

20$ a week isn't anything if you live in America, but many places in the world it exceeds the cost of necessities and allows luxury purchases to people who would have nothing.

 

[sourceninja]

My worry about minimum wage is that the cost of good will come up to meet the cost of minimum wage.

If we double the bottom rung's pay then the people who make goods will understand people have more income, so the market will bear a higher price. So you not only raise prices to cover your loss in profits, but to take advantage of the fact that works with a poor history of managing money now have more money to manage!

The end result is the guy who makes $30.00 an hour suddenly finds his pay doesn't go that far. How do we get him a raise?

 

[Genx87]

Higher minimum wage = higher cost to create goods and services = less competitive goods and services = less exports to rest of the world = less domestic jobs

If Cost to make cell phone case:

United States: $1
China: $.05

Then ability to export cell phone case:

United States: 0
China: 1

Jobs to make cell phone case:

United States: 0
China: 1

----------------

If $15 minimum wage:

Cost to make goods and services go up: Yes
Ability to export: Down
Jobs: Less

True?

There is also currency valuation to think about when it comes to international trade. But since China artificially pegs their currency to ours. There is some truth to your logic.

 

[Genx87]

Manufacturing Jobs are not Minimum Wage Jobs.

If the min wage goes to 15\hour many will becomes min wage jobs.

 

[Fritzo]

The problem is minimum wage jobs are supposed to be starter jobs, not career jobs. When you decide to stay an a minimum wage job your whole life, you start acting like it's the employers fault you don't make enough to live on.

Raising the minimum wage is a backwards fix.

 

[smitbret]

Payroll is a smal fraction of the budget for companies who are making billions in profits anyway.

And unless everyone on minimum wage is saving money under the mattress, it'll get spent anyway increasing profits further.

Except that the businesses most affected by a minimum wage increase are small businesses that can least afford the add'l overhead.

 

[Markbnj]

Payroll is a smal fraction of the budget for companies who are making billions in profits anyway.

For larger companies it's typically 30-50% of costs, depending on how you want to define payroll, and what sort of business the company is in. For service organizations it can easily be the largest line item.

 

[desura]

Here's a thought experiment.

Go to the worst sections of the USA. Detroit. Camden NJ.

Suspend minimum wage.

Also greatly relax rules and regulations, no property tax.

Would we see a manufacturing renaissance in those regions?

 

[Jimzz]

My worry about minimum wage is that the cost of good will come up to meet the cost of minimum wage.

If we double the bottom rung's pay then the people who make goods will understand people have more income, so the market will bear a higher price. So you not only raise prices to cover your loss in profits, but to take advantage of the fact that works with a poor history of managing money now have more money to manage!

The end result is the guy who makes $30.00 an hour suddenly finds his pay doesn't go that far. How do we get him a raise?

If goods and services have been as stagnate as min wage has been then I would agree. But since even basic goods have been increasing while wages have moved little that is not the case.