damn it Carl get your shit together

@ilmanti

8 жыл бұрын

+holycow343 Typical fucking Carl. Then he goes around whining that the Mexicans took his job.

@SillyGoose2024

8 жыл бұрын

Carl stinks

@holycow343

8 жыл бұрын

***** yes anyone who can't cook a burger fast enough should kill themselves.

@Juliapak

2 жыл бұрын

He's a lemon

I live in the Philippines, compared to the rest of the developing countries in Southeast Asia we have among the highest minimum wages, yet our country still remains knee deep in poverty and unemployment remains a major issue. China pays sh!t wages but their great strides in poverty reduction in just 2 decades is revered as an economic miracle. Reality seems to reflect what this video suggests.

@Donkeyearsa

Жыл бұрын

The vast majority of people in China make around $1 a day or less.

@repivz00

Жыл бұрын

@@Donkeyearsa "Vast majority" suggests a LOT more than 50% of the Chinese people live on a dollar a day or less, just top of my head that claim sounds wildly untrue however I'm certainly open to reviewing your sources.

A better way of looking at minimum wage would be to argue that Walmart would survive a $10 or even $15 minimum wage. They would fire people, cut back hours, raise prices (not as much as their competitors), and use their vast resources [which small businesses don't have] to pursue more automation requiring fewer man-hours. So yes Walmart could afford to pay their workers more. Smallbusiness Mart not so much. The small independent businesses would have a very hard time paying their cashiers, stockers, and baggers.

@LAkadian

5 жыл бұрын

No. Walmart makes too much annual profit. We should restrict them and force them to pay their employees more.

@FletchforFreedom

5 жыл бұрын

@@LAkadian Actually, Walmart only makes a few percentage points in profit (barely enough to cover cost of capital) - nominal profits are meaningless and tell you nothing. And their workers are fully compensated - a minimum wage has never increased pay - only unemployment.

@rhorynotmylastname7781

5 жыл бұрын

Don't they already pay their workers like 14/hr

@jamesordner1368

4 жыл бұрын

Now look at Walmart trying to raise the minimum wage by lobbying Congress. They couldn’t care less about the average worker. They just want to legislate a monopoly for themselves by putting everyone else out of business.

@randallwalkerdiaz1002

3 жыл бұрын

Copy and pasting this comment into socialist subreddit; lets get ready for insta ban.

you forgot to mention that it doesn't only force the employer to pay a higher wage to their lowest payed employee, but also increase the pay to every employee from the bottom to the top. because the only incentive to take on higher responsibility, more stress, and more chance for failure and more risk of losing ones job is to include a raise.

How about a 0% income tax? That's an instant 20% boost in wages, and nobody gets laid off.

@berin99

10 жыл бұрын

In exchange for abolishing the Federal Government?

@djb5255

10 жыл бұрын

That's pretty much a win-win right there, buddy!

@GreyWolfLeaderTW

9 жыл бұрын

berin99 The federal government existed for over 100+ years before the creation of the income tax (through the 16th Amendment).

@ChaoticGlory13

9 жыл бұрын

berin99 Its ignorant to say it abolishes the federal government, I agree. Lets think first, however, about what exists now due to tax payers money that didn't exist pre-16th amendment? How about, Social Security, the Federal Highway system, the large amount we spend on our military, and these are just a few I can think of. Income Tax is the largest source of revenue for all of our government organizations. Before the 16th amendment the government was not as active in promoting growth in our economy. These people say these programs are driving us bankrupt, and should be broken down. But examine the frequencies of the economic cycle in the 19th century and look at them now. It is fact that government involvement in the economy has protected millions of jobs that would have otherwise been lost to the economic cycle.

@GreyWolfLeaderTW

9 жыл бұрын

ChaoticGlory13 *Laughs *I* didn't say that it would abolish the federal government. The person you're looking for is berin99.

Take the example of Germany : no minimum wage (except for some jobs), great economy and happy people !

@mokukiridashi

10 жыл бұрын

because of strong unions

@IcyPinguin

10 жыл бұрын

mokukiridashi same with Denmark.

@juanp2k3

10 жыл бұрын

All for adopting every aspect of German government, say AYE!

@MarkReadPickens

10 жыл бұрын

mokukiridashi The point of labor unions is to force wages higher than justified by productivity. Otherwise, workers would naturally gravitate toward the best offers and would have no use for unions. This has the same effect as increasing the minimum wage, but only directly affects the part of the economy unions control. In other words, the stronger the unions, the greater the misallocation of resources, the slower the rate of economic growth. When I was a kid, unions controlled over a third of jobs in the U.S. Now (if we exclude government workers) it's less than 10%.

@mokukiridashi

10 жыл бұрын

'higher than justified by productivity" I think there's a lot of room for interpretation in this line.

Doesn't this just show that the whole system is flawed? This pretty much states that "we have to pay you low wages otherwise its your fault people are unemployed or prices rise when we have make up for profit loss? Do they really think that oil would not be pumped/houses built/cars made if the owners didn't make billions for themselves? how about we switch to minimum wage percentages of total company worth for every employee?

@Bloodmoon17

8 жыл бұрын

If you've ever run a business, you'll realise how poor of a model that is. It limits the hiring of workers, because the profit percentage is reduced per worker, and therefore curbs investment that could be used to expand, hire more people, and make better product. Gotta love these armchair economists/business managers who think they know a magic formula that everybody should be forced to work for.

@seanyarusewicz

8 жыл бұрын

+Bloodmoon17 Please illuminate me on how it limits investment in development? If the people on top weren't making such huge salaries and bonuses, that money would recirculate into the company for r&d, no?

@Bloodmoon17

8 жыл бұрын

There are only so many percentages until you get to 100%. The "minimum wage" would wind up being a decimal number, that would drastically change from business to business depending upon the industry and overall demand. It totally limits flexibility that would allow the company to keep its workers or invest in itself to set up new locations or implement new technology. It's just a poor business model, and even the most "worker-friendly" businesses have never committed to such a method, because it is unfeasible.

@FletchforFreedom

8 жыл бұрын

+DeathToTheDictators And how many times will you repeat the historically inaccurate and long disproved Henry Ford myth. In the real world (a place with which you are obviously completely unfamiliar) Henry Ford was an innovator who developed improved production techniques. He hired and trained the best workers he could find and, when competitors began hiring them away and turnover costs rose, he paid them more (not because he was forced to, but because it was in his best interests to do so). That he put an egalitarian face on it to impress the ignorant runes (the same ones falling for it today)( doesn’t change the fact that the decision was entirely market driven and there was never the slightest credibility to the economically dimwitted notion that paying workers more than their value results in them having more money to buy things. There is no economist anywhere who will fall for such nonsense … because it is pure idiocy.

@FletchforFreedom

8 жыл бұрын

+DeathToTheDictators In other words, you have no facts, you have no reasoning, you have no rebuttal. All you have are laughter and dismissal - it's all you ever have. There isn't an historian or economist *anywhere* who subscribes to the Henry Ford myth. Why? Because it's absurd on its face. Basic economics. Economic growth is driven by production - wealth creation - not by spending to the extent that economic efficiencies are achieved. Workers engage in productive activity in order to satisfy future demand (Say's Law - that anyone can look up). As employers compete for labor services, workers are paid what their labor services are actually worth (see the link to the absolute proof I've presented to you numerous times). As workers can be neither underpaid (or the employer is snatched away - which is why Ford raised wages) or overpaid (or the employer loses money on that activity and wealth is destroyed).And the UAW workers would love to hear how "anyone could do the job" (which was invariably far more than "turning a handle"). Do you have no grasp of just how unimaginably stupid you are?

This is the most accessible explanation so far that I've heard of. Thank you! :)

The main reason min wage is a bad idea is it closes the gap between the most unskilled wage and any semi-skilled wage (the first rung on the ladder). If getting some training means you get chance of a big wage increase, that is incentive. If the training only gives you a small increase, many won't make the effort.

@catvisiontv855

2 жыл бұрын

An unconditional income would be better than min wage because Bob the owner would not need to rehire people because he would have people who really want to work, also with big corporations if min wage increases all they would do is get robotics implemented to a higher level and only hire only a few efficient workers which is already happening with big companies like Mcdonald's and Walmart. If the government wants to support production for most businesses the gov. would support an unconditional income which increases production in which businesses make more and then hire more if needed. Also production is more efficient keeping most bad workers out of the workforce and keeping most good ones in who really want the job.

Also: after I found your video on Housing Bubbles, you just earned yourself a new subscriber. Good work, keep it up. Please do more on economical issues. Love consuming lessons on the economy from a libertarian/conservative perspective.

This video just doesn't cut it. The low minimum wage together with a law that allows employers to deny workers key benefits has created an exploitation class of workers as part of a system entirely to the benefit of private business. These working poor then apply for government assistance. The whole system is a massive giveaway to business at the expense of the poor and taxpayers. A low minimum wage is the keystone of this exploitation.

@FletchforFreedom

8 жыл бұрын

+David J Gill Since a) the Marxian notion of "exploitation was debunked more than a century ago, the "subsidization" myth has similarly been debunked and workers are paid the actual value of the labor services they provide, not one of your assertions bears the slightest bit of scrutiny.

@FletchforFreedom

8 жыл бұрын

+DeathToTheDictators I am not responsible for your massive ignorance (or tendency to call anyone with actual facts “a lunatic”. The entirety of Marxism, including his concept of “exploitation” was thoroughly and completely debunked no later than 1896 with Bohm-Bawerk’s publication of “Karl Marx and the Close of His System”. Still, the labor theory of value (and by extension the Marxian theory of exploitation that derived from it) had already been completely obliterated by Jevons and others years before (which may well be why even Marx stopped pushing it in the last years of his life). Pretty much everyone with a grasp of economic or how the real world works understands that workers in the Third World are *vastly* better off having the job opportunities made available to them by US companies than they would be without them and that such companies pay generally higher wages than would otherwise be available. Since, as has already been proved to you (sticking your fingers in your ears and humming doesn’t change facts) workers are objectively paid the actual value of the labor services they provide (markup - even if it translated directly to profit margin, which it doesn’t - being completely irrelevant), the choice is not between what they have and a job paying far more but what they have and no job at all … which would, of course make them far worse off. Only ignorant morons repeat the term “exploitation” anymore. Pretty much everyone with even a minimal education on the topic knows better. Of course, you have no counter-argument (you never have) and will just dismiss any fact you don’t like out of hand…One of has clearly been shown to be a liar an idiot and a lunatic; it just isn't me.

@FletchforFreedom

8 жыл бұрын

+DeathToTheDictators Of course, as anyone with an IQ higher than that of pulverized coprolite can figure out, in the real world, the employer/employee relationship bears no resemblance whatever to a hostage situation (or slavery) and, objectively and without question, both parties are made materially better off. And, of course, as even those Third World countries have figured out (because, unlike you, they are not unimaginably stupid) imposing such taxes would make the employment unprofitable and eliminate those jobs altogether making the workers (and the country) worse off. It's a lose-lose, which is why such countries don't follow your dimwitted advice.And repeating the debunked and idiotic myth that "more money" for Americans drives the economy...

"Ended up better off anyway" is proving to be wrong in reality. People are stuck in positions where they either are forced to get multiple jobs to pay the bills and put food on the table, or else in positions where they can't possibly find better pay with alternatives and yet still don't make enough money. Because nobody is MAKING the companies pay more, they have no reason to pay more. The competition isn't enough, because everybody is making tons of money, and seem to agree on keeping similarly low wages and minimal benefits. Take a look at McDonald's vs other fast food options. They ALL pay minimum wage. Obviously, a worker could go to another industry as well - so now we also have to consider retail stores, whether they sell books or clothes, and just about anything else that a person get a job for with limited skills and education. But guess what? They all pay minimum wage too! Those companies can all justify keeping the pay at minimum wage, because the government claims that the current minimum wage is fine. And they have no reason to pay more, because where are the workers gonna go? So the companies get to keep their profit margins. So basically what happens is employees are forced to choose who to work for by other factors than how much they're paid - factors like hours worked, whether or not they enjoy the work, and what kind of benefits are offered (vacation time, healthcare, etc). And the choice there, no matter how varied, doesn't make a difference to the problem we're facing with these low wages - the fact that we struggle to pay the bills and struggle to save up money for increasing our station (i.e. moving above minimum wage work, getting the education or skills needed for better paying work, buying a better home or car), or even just to afford enough to grow your family (do you have any idea how much kids cost?) or to enjoy the things in life you actually enjoy (whether it's gaming, or woodworking, or drag racing). The other problem we're facing now is people that are educated, that have gone out to acquire the skills they need, simply can't find the jobs for their skillset. Whether that's because there's not enough of those jobs, or that skillset isn't needed, or else those people don't know how to look for those jobs is irrelevant. The problem is that these workers are saddled with mountains of debt to pay for their education and training, and so they're forced to go get jobs of manual labor as if they never bettered themselves to begin with. So now what's happened is the employees who can't do better paying work are having to compete for those same jobs with people who can do better paying work but can't find it. With the latter group obviously proving to be smarter or more efficient in most cases. And you have both groups of people trying to fill the same job market, and thus you have too many workers and not enough jobs all over again. Which all, of course, leads to a crappy situation for the middle class and the ideal world for those making all the money - the companies. Because not only can they pay low wages to maintain profit margins, but now there's so much potential workforce that replacing employees has very little overhead. Because if an employee doesn't work out, there's thousands more to pick from. So now they don't need to give a shit if they leave for a competitor or a different line of work. They have no incentive at all to offer good pay or good benefits or good working conditions. So they don't. And nobody ends up better off except the company owners who are already making a ridiculous amount of money. Because the companies we're talking about aren't mom and pop shops (who, by the way, get hurt by this just as much), but the big corporations making millions off these workers. These corporations are able to reduce their costs even further and sell to more people, without offering better pay to their workers (which makes it hard for mom and pops to be able to afford their costs, since they can't get the same deals nor have as wide a sales market - why do you think Walmart got so big?) All of which means the low minimum wage we have now is hurting the middle class. It could be said the idea of a minimum wage at all is hurting us more than helping, but that's not the case. The case is that if nobody MAKES the companies treat employees better, then they won't. They aren't here to look out for their workers, they're here to make money, and employees COST them money. The current job market ensures they have no reason to.

@taoliu3949

8 жыл бұрын

+DrakeWurrum Uh no. If you look at DOL statistics, the median wage of fast food workers is 8-9 dollars. Those making min wage are entry level workers, and the vast majority of them gets a raise within a couple years. Also, the avg household income of min wage workers is around 50k, which means most are entry level workers living with their parents getting their first jobs. Those trying to feed a family off the min wage is the minority.

@TJF588

8 жыл бұрын

+Tao Liu Dunno where the $50K is coming from, because as someone who was hired above his State's minimum wage, I grossed less than $6.5K, with a take-home of not much more than $5K, from my first year. Perhaps if we assumed a 40hr weekly schedule, but with companies wanting to scrimp on benefits, most workers are kept at part-time hours.

@taoliu3949

8 жыл бұрын

TJF588 DOL statistics, that's where it comes from. 94% of min wage workers are NOT the sole income earner of their household. That means other family members work too. If you're complaining about not enough hours, the problem is probably not with the wage, it's probably with the hours. Find a second job or another job so you work at least 40 hours a week. Min wage full time nets about 15k a year. That's totally livable, I've done it, and it was without benefits.

@KarlaMarsh

8 жыл бұрын

Finishing college would certain help improve that.

@FletchforFreedom

8 жыл бұрын

+DrakeWurrum On what planet are people “stuck” as you suggest because it bears no resemblance to earth. Essentially *no one* is trying to live on the minimum wage. Less than 1% of US workers make that and the bulk of them are secondary income earners living with someone making more - usually *far* more which is why so few minimum wage workers live in poverty. And minimum wage workers get their first raise in just 6 - 9 months on average. No one is “stuck” and people *routinely* move up. In actual fact, people holding multiple jobs due to need is quite rare. Most with multiple jobs do so due to the nature of their primary job (teachers during the summer, firefighters due to their schedules, etc.). Instances of multiple job holder actually increase when the economy improves - exactly the opposite of what would happen if the circumstance were primarily due to need. Further, it has been empirically proven that low wage workers are paid what their labor services are actually worth. No one is “underpaid” and the competitive market makes it impossible for companies to pay less than value for value so the minimum wage demonstrably never results in workers being paid more. It only ensures that workers whose services are not worth that arbitrary level are effectively shut out of the labor market. And the “tons of money” argument is completely specious. In fact companies paying the minimum wage operate on very slim margins. Retailers like Walmart and fast food franchises typically make a minimal return (around 3% or so). They can’t afford to pay more than a worker is worth under any circumstances let alone when it would reduce the return to below what can be received elsewhere (which would shut down the business). In fact, the vast majority of such businesses (including fast food and retail) already pay more than the legal minimum because the value of such services often exceeds the legal minimum (again, less than 1% of US workers are actually paid that). Such jobs will still be relatively low paying but then they are still relatively low skill/low return activities. That people sometimes choose to obtain skills that are simply not marketable in the economy is no one’s fault but theirs. If you can’t make it with a degree in Women’s Studies or a specialization in Marxist Theory or 18th Century French Poetry, you shouldn’t be surprised. And if you get a degree but didn’t do well…. It’s the only thing that actually *is* relevant. No one held a gun to their head and said “go into debt to get edumacated!”. I know several people who got no college degree and do quite well having either worked their way up or learned a trade. Others paid their way through without racking up the debt or found means of minimizing it. All the moaning about a decimated job market is disconnected from reality. While weak in many ways, it is nowhere near that bad and has been far worse several times in the past. A big part of the problem is government intervention in ways like … minimum wage laws. You need to try to educate yourself on some basics of economics, history and reality.

For those of you complaining about oversimplification, if Einstein can create an equation that describes all energy related to mass very succinctly, one can explain the effects of minimum wage on an economy simply.

@runito75

7 жыл бұрын

No. Physics doesnt deal with psychology, greed, intentions and so on. Physics are predictable in that way. Economics includes many aspects of life. Its about psychology, sociology, ethics, ideology.....

@FletchforFreedom

7 жыл бұрын

+Rune L Alas, that is a common complaint put forth by the economically illiterate and, in particular, those who don't like what economics says. It is also completely wrong. As economics concerns itself not with individual behavior but with aggregates, individual psychology, "greed" and intentions have no relevance whatsoever (beyond a logical basis for understanding). Just as in physics, economics has laws (most notably the Law of Demand which advocates of the minimum wage violate with impunity) and theories (which, just as in physics, are not merely guesses but are completely consistent with the real world evidence (lest they be discarded). That physical sciences are more able to be tested in "laboratory conditions" changes neither the nature nor the validity of either science in the least. In the case of minimum wage laws, the simple reality is that the real world evidence conforms nearly perfectly with the theory and minimum wages have never resulted in anything but disemployment effects, most notably job loss.

@zelda12346

7 жыл бұрын

FletchforFreedom No, you missing a critical element of economics: macro and micro economics are fractals. The focus is on individuals simply because it (amazingly) scales upward into more complicated systems. We can observe the macroeconomical effects and determine the result of minimum wage, but in order to get there, the case needs to be built via the microeconomics. Skipping that step is like constructing a proof where [Magic] is one of the steps towards the conclusion.

I don't think burger generation is the reason burger or fast food joints take on workers, the fact is the bosses make spectacular amounts of money and pay people as little as they can get away with. Although a great idea on the face of it, all the minimum wage produced was a race to the bottom, anyone earning above minimum wage soon got the choice of taking less money or take a walk to a jobcentre and now, rather then being embarassed by offering minimum wage, employers make out they're doing you a favour by paying the least they can get away with. It is sickening and needs reform.

@Rantsnrambles808

9 жыл бұрын

Gary Rowlands I just think huge corps like mc donalds need to share a little of that success.. your pop's burger joint may not be able to pay over 8 but mcdonalds sure as fuck can.

@Rantsnrambles808

8 жыл бұрын

another point is maybe the employees won't be shit...i go to in and out where they get like 10.50 everyone is happy and nice. And im just going to say this nobody busts ass at min wage jobs. you may give 80% even 90 if ur good but the odds of you getting a promotion at mc D's as a teenager are almost 0 so why bother

The video did not address the issue that industries will simply raise their prices to cover their losses. Consumers are hurt and undoubtedly will retract spending. If the minimum wage is raised to $12 an hour and a meal at McDonalds now costs $12 on average as a result, there is a risk that more people will cut back. It would be better for workers to unionize and competitively negotiate for higher wages than have the government mandate wage increases. Management and unions could agree on tiered wages that allow less-productive workers to keep their jobs while pushing for higher wages for more skilled and deserving workers.

@FletchforFreedom

10 жыл бұрын

While, it's true that artificial wage hikes are slightly inflationary, the real result, as you seem to touch on, is job loss. And this takes place regardless of whether the wage floor is imposed by government (minimum wage laws) or by unions (collective bargaining), There is no need to interfere with the market wage.

@marcparella

10 жыл бұрын

As a conservative, I agree. But workers have a right to agitate wages. They can do so individually by asking for a raise or collectively through a union. The so-called "market wage" has to be arrived through negotiations just as prices are set through competition. Where most conservatives draw the line is where employers are required to hire only union workers for certain jobs. That is something I would oppose.

@cowboy1165

10 жыл бұрын

Marc Parella Unions are not market forces, they are a government sanctioned and protected cartel, and therefore not market competitive. in essence they can be as destructive as the minimum wage.

@marcparella

10 жыл бұрын

I am a conservative and agree to an extent. However individuals have a constitutional right to associate, and that includes forming unions. To deny workers the right to form a union in my opinion is unconstitutional.

@codyramey1036

9 жыл бұрын

Marc Parella So what if you just dont hire people who unionize?

Bob is flipping burgers, he's going no where.

@user-pc7sq1dj7r

4 жыл бұрын

That's nonsense everyone has to start from somewhere some of the biggest CEOs were flipping burgers.

@prestonhall5171

4 жыл бұрын

Depends on the WHY hes flipping burgers. Maybe hes doing to help pay for college tuition. At that point it becomes a temporary job.

@someguy1688

3 жыл бұрын

@@xPRODIGYxGAMER what businesses did you start and do you have any advice for how to start one?

@christianvega3850

3 жыл бұрын

Flipping to managing to owning. One must walk the walk to understand.

@dragonore2009

3 жыл бұрын

I use to flip burgers, today I'm a software developer. Thank God the minimum wage wasn't $15/hour, I'd likely not have been hired to begin with and maybe not a software developer today. Bernie Sanders fail.

Great example. What a generous CEO paying $8 an hour to his employees when he's only making $7 an hour himself

@wesjones6370

3 жыл бұрын

Restaurants aren’t run by a CEO. Most franchise owners aren’t making huge profits.

@phantomknight1395

3 жыл бұрын

He just need to add another 3 than he will make 14... Lol

Great piece, thank you. I like the confident performance of that professor. I also appreciate the very well-chosen analogies to the real world. Keep going. Greetings from germany.

Raising the minimum wage could hurt Small business, increase unemployment and increases costs for everyone. It also could be causing businesses like Walmart or Target to start investing in technologies like Self-Checkout machines as a way to save money and hire less workers. Example: If the minimum wage reached $15.00 an hour, we could be expecting businesses to have more Self-checkout machines in shopping centers as well as tablet screens to be replacing workers to save money for restauraunts.

EVERYTHING is a balance sheet and YOU are at the bottom. If the minimum wage is raised, the prices YOU pay will rise or the quantity of something YOU get for a given price will drop. Don't foolishly expect that the labor cost increase to employers will come out of their profits. The same goes for corporate taxes. Who really pays them? They are passed on to the customers of those corporations and are taken into account in the balance sheet when those corporations calculate how much they can afford to pay their employees. As far as fast food workers making $15/hr, there are far more highly skilled occupations and ones that require more formal education that don't get paid that much. $15/hr is crazy.

@jitpatel9648

5 жыл бұрын

I agree. Minimum wage is why the rich keep getting richer and the poor keeping getting poorer. Not to mention the fed who us fueling this bubble economy.

@llo7816

5 жыл бұрын

Finally a sane person!

@nachannachle2706

4 жыл бұрын

But, Americans LOVE their burgers. You have to pay the burger flippers more so that they don't poison the burgers and ruin the whole industry...

why doesn't this take into account that minimum wage increases are not indiscriminate? that the competitors will also have to increase wages, meaning prices will go up without significant consequence to individual owners. i'd also like to see hard evidence of the effects of minimum wage increases on specific industries, i find such a claim highly dubious. this video also doesn't take into account the higher spending potential of now higher wage workers and the effects on demand and labor requirements to meet those higher needs. people of lower economic status generally live pay check to pay check, so an increase in their spending capacity will almost entirely reenter the market, whereas those getting by just fine are not putting their money to work as efficiently. i'd like to see some statistic of this also implemented in your video. if this is really a channel to learn, lets get into some nitty gritty numbers, dont just throw big claims around without any critical analysis.

@HitomiAyumu

9 жыл бұрын

sheepwshotguns "doesn't take into account the higher spending potential of now higher wage workers and the effects on demand and labor requirements to meet those higher needs" Maybe this isn't mentioned because to increase output, you need more than just extra workers. You also need access to individuals with relevant skills AND new technology to support increasing demand. The problem is that skills and technology take time to develop. Hiring a new person may not be enough.

@micaevski

9 жыл бұрын

agree. this video completely ignores a huge side of the supply and demand equation. who buys the burgers? people buy them and people with more money buy more burgers.

@FletchforFreedom

9 жыл бұрын

***** Actually, no ot doesn't. Because a price floor is artificial, all it does is create shortages (unemployment). Raising the minimum wage does not put more money in consumer hands and the notion that paying workers more than the market wage allows them to buy more products has never been economically credible.

@Bloodmoon17

9 жыл бұрын

***** I have two words for you: Sticky wages. It's the observation in economics that prices for commodities fluctuate quicker than employee wages. This means that a minimum wage hike sees a substantial increase in the cost of living, thereby making the payment of more dollars to workers useless, since the buying power of the dollar would have actually gone down. This is because there is more money now being spent at the beginning of the wage increase, which gives the illusion that there is more demand for all goods. This increase in "demand" is not complimented by an increase in supply, therefore shortages are more common and prices soar.

@pasparaldabeiradocanal1578

9 жыл бұрын

sheepwshotguns General wage increases do not necessarily lead to higher unemployment. And often wage hikes actually result in a rise in job demands. That's because higher wages lead to higher consumption by the working class. Wage increases may effect the general profit rate and the income of the capitalist class. But while those capitalists who produce luxury goods will see sales fall, those who produce consumer goods are compensated with higher demand. This is more or less what Karl Marx said a long long time ago. Recent empirical studies studies confirm this.

As with any debate you spend the first half defining terms ( Minimum wage increase ) if done slow and insedicley like normal inflation we have time to adapt when jumped 7.25 to 15 you can't adjust fast enough in many cases

Here's a fun fact about the minimum wage! There are 19 states right now(plus Washington D.C.) that have minimum wages that are above the federal level($7.25 an hour) and the remaining 31 states are at or below the federal level. Among those 31 states, the average unemployment rate(as of October 2013) is 6.3% while the unemployment rate among the 19 states with higher wages is 7.5%. So when you hear people talking about how the minimum wage increases unemployment, this is exactly what they're talking about. SOURCES: www.dol.gov/whd/minwage/america.htm www.bls.gov/web/laus/laumstrk.htm

@orionsghost9511

5 жыл бұрын

Consider this, Jordan. If those numbers are at least accurate in terms of ratio- because, let's be honest, real unemployment is not measured in this country - you are talking about 1 to 2 more workers per 100 without a job. Which means a loss of no more than $14.50 an hour per 100 people. Yet, in the 19 states that have lost those 1 to 2 workers, the rest of the workforce is making much more than the 31 states with lower unemployment. So, for example, in Ny State minimum wage is at least $11($15 in Nyc). That means that each minimum wage worker is making almost $4 an hour more than in those 31 states you mentioned. Additionally, wages of people who were just above minimum wage were almost universally bumped up as well, so that workers could be enticed to remain on those jobs. As a result, per 100 people, the bump in wages has been far more than the possible $14.50 lost by a small increase in unemployment. This is not at all to be unsympathetic to unemployment - it sucks. But we live in a country where two working class people have been working for what one used to make, so having a community putting less hours to business labor while increasing the money the community makes sounds like a healthy positive. It's good for families, it's god for kids, it's good for individuals.

Before the minimum wage hike: $24 for the employees $7 for the small business owner And 310 Burgers added to the economy After the hike to $9.50: $19 for the employees $3 for the small business owner and 220 burgers added to the economy Less profit for the employees, less profit for the small business, and what happened to the 90 people who used to buy burgers? They had to buy from McDonald's instead, so the big businesses got even bigger. Minimum wage drives wealth inequality by centralizing commerce to a few megacorporations. The rich get richer, not on their own merit, but because the government makes laws that advantage them

Working at a fast food joint flipping burgers and serving fries was not and should not be a long term solution for supporting a family. There is no skill required to do this type of work. If these fast food workers want to make more money they should acquire a real technical skill. Will it be hard? YES. But sacrifices are made daily by people to improve their lives. If you have a problem making what you make...go get a skill and work your way up to a better life. It's that simple.

@mikalmandichak8328

9 жыл бұрын

Also what If lets say we lower the minimum wage to6.50. Then we could hire Dave, who only flips 70 burgers an hour. Even more jobs are created. Plus you can't get a good education without money so say there are enough collage graduate jobs for everybody and we also raise the minimum wage like 2 out of every 10 poverty stricken Americans would even be able to afford the collage courses and then what. Did I mention I'm only 13. I'm not bragging I'm just saying that this stuff is simple enough for a 7th grader to figure out

@sfdrew83

8 жыл бұрын

+kenyaful If we, as a society, want clean floors, fast food, and all other manner of goods and services, then we need to accept that somebody has to do to those jobs, and that even though they may not make the highest wages in society, they deserve respect and dignity, and not to be told to find a better job. If they did, somebody else would need to take their place for society to continue to function. Demand may eventually drive wages up, but that's only hypothetical. Population growth and the need for people to sell their labour will ensure there will be people to do the job. I have never understood the desire to look down on these jobs as just stepping stones or only for kids. Every worker deserves respect and dignity and a living wage if they work 40 hours a week. There is enough wealth in this country to make that happen. As it is, those people either depend on high earners in their family or government assistance. This cannot continue. Human dignity is more important than greed and profits and some sleazy burger manager making a profit on every burger flipped.

@sfdrew83

8 жыл бұрын

+DeathToTheDictators Spit on them. Tell them they aren't good enough and that if they can't wrestle those jobs away from the competition (law of the jungle you understand) then they deserve to live in poverty and have society disdain them, despite the fact that they work undesirable jobs that are often physically demanding for little compensation while their sleazy bosses make a profit on their productivity. Free market ... ahem... enthusiasts promote a pyramid scheme where the rich at the top deserve their billions and the scum at the bottom deserve poverty because they couldn't fight their way to the top. What a way to build a society. No thanks.

@sfdrew83

8 жыл бұрын

+Mikal Mandichak Stay in school. It may not help. They lie to you there. Also, there are not enough college graduate jobs to go around.

@kenyafulnow

8 жыл бұрын

sfdrew83 I agree with you. Every worker deserves a living wage HOWEVER I refuse to stand for accepting that a person who decided not to further their education make the same amount as someone who decided to sit out of school and oops... Had 2 or 3 babies. It's not fair. With that said if a McDonald's worker get paid $15 an hour, I want s $8 to &10 RAISE.

If you expect to make a living and or raise a family while working at a fast food establishment, grocery store, etc., you're GONNA have a BAD time.

@maungthomas

5 жыл бұрын

work 2 jobs,

I work at Sears, some other employees where there for years. They still get paid minimum wage...so they will benefit from a raised minimum wage.

@smber2cnma

10 жыл бұрын

Seems you missed the central points of the video: Raised minimum wage will only help those that keep their jobs, if these other Sears workers have been there for years w/o a raise they probably aren't producing much more than their pay and would be some of 1st fired if their cost of employment increased. Also, Sears is kind of a dying brand. Everyone Sears near my house has closed over the last decade, so increased minimum wage might push your store over the edge and everyone lose their jobs because they shut down.

@AleksandrVasilenko93

10 жыл бұрын

smber2cnma I guess you are right.

@stayswervin554

2 жыл бұрын

Not to mention goods and services prices go up And state benefits go up because more people are unemployed Raising the minimum wage is just a mess

I actually work as a cook for a diner-type restaurant and personally know how wildly unrealistic this is. First of all, the profit margins that are made are SIGNIFICANTLY higher than what this video would lead you to believe. Our business is slow, and the restaurant will still make three or four times what it spends on wages and food cost, easily. Increasing the minimum wage would put a marginal dent in profits for businesses because the profit margins they make are already incredibly high. Even with the dent in profits from the wage increase, the economy would ultimately benefit because you now have an entire class people making a bunch more money than before. This gigantic class of people will now have spending money rather than just scraping by. That would stimulate the economy more than any measure the government can implement, increasing profits for businesses and creating new jobs to meet the new demand. Also, the obviously huge logical gap in the story, disregarding all of what I just said... how do you fill the 90 burger deficit? With a business like that, you do have to make a certain amount of food, and now, instead of 310 burgers, you can only produce 220 burgers per hour. That's a huge hit to profits right there, and the boss would hire a new, better cook to fill the gap. It would ultimately work out in the end because you have to have a certain amount of staff to run the business. If it takes three cooks, it takes three cooks. The other two cooks aren't going to start magically producing more burgers, certainly not enough to fill the gap left by the lay off. This video is not only flawed in its representation of reality, but also logically flawed. Not to mention the fact that there is no research or actual data to back up the claims made here. Total propaganda, lost a lot of respect for Learn Liberty for this.

@sfdrew83

8 жыл бұрын

+wndw2000 Exactly right.

@FletchforFreedom

8 жыл бұрын

+wndw2000 Your cluelessness about how the real word works (actually, it's been long proven that low wage workers are paid what their labor services are actually worth) explains how far (...) you've advanced. There is no "logical gap" in the example, because "what you just said" is utter nonsense.

@blueridiculous4950

8 жыл бұрын

But that gigantic group of people with higher wages came from the employer's money, which was going to get spent anyways. So this new group of people is probably not going to stimulate the economy.

@karlmarxthebolshevikrabbi2536

8 жыл бұрын

+FletchforFreedom "it's been long proven that low wage workers are paid what their labor services are actually worth" Empirical evidence regarding the employment effects of minimum wage are mixed at best. Some research actually suggest that minimum wage hikes may increase employment. www.irle.berkeley.edu/workingpapers/157-07.pdf www.nber.org/papers/w4509 The video leaves things such as workers' motivation and income effects of wage hikes out of equation as well. If one wants to generate reliable economic analysis, one needs more than just an a priori scenario or a couple of supply and demand curves.

@igorvuk4454

7 жыл бұрын

poor spend money on basic goods, rich invest money in monetary system that provides credits and money for investment and production. you are getting it so wrong it hurts.

The figures displayed at 1:11 are incredibly sloppy and inaccurate. I would like to see a new rendition of these figures, but this time with more realistic figures. The point is illustrated reasonably well, but if people really want to scrutinize and debate the issue there are far too many other factors that have to be discussed (How much rent is in the city? The rate of inflation? The income tax in that particular state? Is it a privately owned business or is it part of a transnational corporation? Honestly, its hard to say as a blanket statement "Minimum Wage at $12 is bad" or "Minimum Wage at $8 is good". The video overssimplifies what should not be and does not thoroughly analyze the issue....

Everyone wants to raise the minimum wage - but nobody wants to tip those minimum wage workers ;)

@DJ13854

4 жыл бұрын

precisely why minimum wage should be raised.

@SalveMonesvol

3 жыл бұрын

@@DJ13854 It should be 100 USD an hour. That way we could all be rich by working 1500 hours per year.

@DJ13854

3 жыл бұрын

@@SalveMonesvol Well if we’re being honest the minimum wage argument is outdated. Machines will soon replace all minimum wage jobs.

@SalveMonesvol

3 жыл бұрын

@@DJ13854 Now you dont seem very supportive.

@DJ13854

3 жыл бұрын

@@SalveMonesvol Rather the whole thing has become irrelevant. Soon the only jobs we'll have be those in the entertainment sector. So it's become pointless

So the real reason is...... the minimum wage hurts workers because of GREED. In the last 20 years productivity in the US has increased by 30% while real wages (adjusted for inflation) have only increased by 5%. Not to mention we cut social safety nets and education spending, while still giving tax credits to oil companies and subsides to farmers. All while large corporations manage to keep trillions of dollars off shore to avoid taxation... GREED.

@BramClaes

10 жыл бұрын

***** Problem with that reasoning is that in countries where the minimum wage is higher than in the US, unemployment levels are pretty much the same. In Germany and Australia, it's even lower. Your claim isn't supported by empirical evidence

@BioHunter1990

10 жыл бұрын

Emotional admittance in your first sentence. If you somehow saw greed I feel sad for you. If you add things up, even when all three workers got $8/h the owner still earned less than them in profit. And after the minimum wage, he earned even less. There comes a point where the option between turning a loss and closing up becomes reality. None of us would conduct business with the intention of netting a loss. And consider this, of that 'profit', how much was in operating costs? All that we saw was the subtraction of the cost of labor into the cost of product.

@Jakedasnake1066

10 жыл бұрын

Businesses are created to make money first and foremost. that is the definition of a business. for a business to try to maximize the money it's making is not greed, but simply inherent to the nature of the business.

When I was in high school I worked at my city's local amusement park. I was being paid minimum wage, at the time it was 5.25. And my company, if you worked the entire summer and worked the busiest two days of the summer (July 3 and 4), they gave you a bonus at the end of the summer. Then minimum wage was raised by a dollar. My company responded by no longer giving the bonus at the end of the day. Companies will find a way to make their money back and it will be at the expense of the workers.

@hrhtreeoflife4815

11 ай бұрын

It's now the year 2023. Minimum wage in California IS $15/hour The average Minimum wage worker gets roughly 14 hours a week. A gallon of the cheapest gas ⛽️ is $5/gallon in Los Angeles County. A McDonald's meal is $11.50. A family meal for 4 at McDonald's is roughly $50. That's 1 meal. People need to eat every day 3x. People are skipping meals.

Good example if you wish to ignore macroeconomics on the issue.

@pwayboy

10 жыл бұрын

Minimum wage has little to do with macroeconomic topics like fiscal policy, monetary policy, exchange rates, or the money supply.

@mik1984

10 жыл бұрын

Lony TaRussa You didn't study well. Minimum wage is part of labor policy influencing the aggregate demand and prices. But that is not the only aspect of the controversy.

@solarintotheworld

10 жыл бұрын

Lony TaRussa you dont know macroeconomics to begin with.

@starfyredragon

10 жыл бұрын

Lony TaRussa Minimum wage actually has a positive effect on employment on a macroeconomic level.

@mik1984

10 жыл бұрын

Joshua Petersen Not really. To be specific, minimum wage relocates income to those who have lower propensity to save thus boosting spending. It is possible for minimum wage to reduce unemployment just as it is possible for expansive budgetary policy or extensive monetary policy to reduce unemployment. However the minimum wage does have certain adverse side effects and the aforementioned goal of boosting consumer spending can be better achieved by a sound monetary policy or lowering tax rates.

The economy isn't that simple

@FletchforFreedom

9 жыл бұрын

Actually, it is.

@notbadsince97

9 жыл бұрын

FletchforFreedom the cost would rise but would be divided by the # of hamburgers sold which would go up in pocket change

@FletchforFreedom

9 жыл бұрын

Illya Lypyak Actually, in the real world, any rise in the minimum wage would only result in short-term inflation. The real impact is that hours, benefits and training would be cut (along with jobs outright) causing higher unemployment, more people on welfare and no reduction of poverty ... as has happened empirically every other time the minimum wage has been increased. It has never done anything but harm.

@WorstTimelineInhabitant

9 жыл бұрын

FletchforFreedom It can remain that way until the business can recover profits to be able to resume as it did before.

@FletchforFreedom

9 жыл бұрын

IBitchSLAPYourAss Well, if you mean after the business has cut marginal jobs and reduced costs by cutting hours, benefits, etc. and then waiting until monetary inflation reduces the value of the arbitrary minimum to the level it was before the hike, then, yes, you are absolutely correct. That doesn't provide a great deal of comfort to those who lose their jobs or have their hours cut in the meantime.

I saw a statistic the other day related to Obama's proposition to raise the minimum wage to $10. I wish I could remember the source, but it said the bill didn't pass ultimately because they predicted the min wage would lift 1.3 million people out of poverty, but would also result in the loss of 1.3 million jobs.

Why don't you argue to remove minimal wage altogether? To me 8$ is just some random number

@zigoter2185

2 жыл бұрын

Because this is really unpopular, although I would like if it actually happened.

Yep because customers come from outer space

Minimum wage goes up and cost of goods sold goes up; negating the increase in wages. In addition, the new increase in wages may increase the amount of taxes they must pay to the government (hidden tax increase).

@ricardoamendoeira3800

9 жыл бұрын

What you're overlooking is that not all products and services depend on minimum wage employees, so it wouldn't cancel itself like you suggest.

@Unkn0wnGuy

9 жыл бұрын

Ricardo Amendoeira Correct, however I'm referring to those businesses that do depend on minimum wage such as restaurants, fast food, retailers, etc. they pass on the increased cost of employment to the customer... and in cases where they don't they'll simply let people go. In practice the minimum wage does not provide the increased living standards that they (politicians) advertise. It's smoke and mirrors to garner votes and capture more tax revenue.

@ricardoamendoeira3800

9 жыл бұрын

Unkn0wnGuy You agreed with me and then proceeded to ignore the argument. Yes, some products will raise their price (those that depend on minimum wage labor) but not all, so people earning minimum wage will still be a bit better off.

@Unkn0wnGuy

9 жыл бұрын

Ricardo Amendoeira Even the ones that lose their job due to cut backs? Or how about the people who can't get a job because instead of hiring 2 employees the company only hires 1 due to the increased cost of employment? What if the company switches employees to part time, are they all better off too?

@ricardoamendoeira3800

9 жыл бұрын

Unkn0wnGuy You are right, those are problems as well. Maybe the minimum wage could be tied to a companies profits, if they are unable to hire a person because of the minimum wage there could be another solution. It's a really complex issue without a simple solution.

What about increasing selling prices after minimum salary raise?

I learn so much from these videos.

Why $15 minimum wage is a bad idea

If there was any truth to this video's claims, then unemployment would RISE when they raise min wage in an area. But history is showing us that the exact opposite happens. Look at seattle for a real world example. They also just increased their minimum to $15/h, and the unemployment rate has be DROPPING like crazy ever since. "Between January and December of 2014, while Seatac’s business owners (and their customers) were absorbing the cost of paying minimum wage employees $15, unemployment decreased 17.46%, falling from 6.3% to 5.2%. It turns out that you CAN increase the minimum wage (even in large increments) and increase overall employment at the same time." The unemployment rate there is now down to 3.7%.

@FletchforFreedom

9 жыл бұрын

raider1284 economicmythsandlies.com/?p=210 The fact is that the overwhelming majority of research shows that the minimum wage kills jobs. Cherry-picked examples don't help you.

Also talk about the raise in pay = higher dollar amount of tax needed to be paid. 10% tax on $8 per hour vs. 10% tax on 9.50 per hour.

Can someone tell my what purpose it serves to keep having the minimum wage lose its value? Why have that in an inflating economy? Why should full time workers live in poverty in one of the richest countries in the world? It's time to face the hard truth that not everyone can afford or even handle the rigor of higher education. It's an inevitable situation we got going here.

50¢ a Burger? Give me a break that's like comparing 1950's prices to today's minimum wage. Last time I got a fast food meal the Burger was almost 5 dollars by itself. Food chains can more then afford a better pay, don't the CEOs get millions upon millions annually why not send some down the ladder to the people who made you that money. And guess what its not just teenagers working minimum wage. Jobs its single mother's providing for kids who are stuck and can't get out of poverty's viscous grip. ITS ABSOLUTELY RIDICULOUS that working full time in the worlds wealthiest nation on minimum wage will land you in poverty while other less well off countries pay their workers more on top of health care even for part time work. But no, Shame on the masses for wanting a piece of Americas pie that they baked. Fuck it lets cut food stamps while we are at it.

@Gotenks712

10 жыл бұрын

Well tbh, Why is this single mother working a job that only pays her minimum wage? I'm still what most would call a "teenager" and I make a little over $15'/hr with a "low-skill" job (waiter). And I know people my age that take home close to $1000 a week with "low skill" jobs. Honestly, McD's was not meant to be a career. Stop making excuses for people who make poor choices in life. It sucks for that single mother, but lets be real. She could've kept her legs closed, or put the kid up for adoption. Do you know how many well off potential parents are out there who desperately WANT children and can't have them for whatever reason?

@wiimooden

10 жыл бұрын

It's no surprise that large companies can afford to pay their workers more. That's actually part of the reason why Wal-Mart a couple years back actually came out in *support* of the proposed min. wage increase. They pay their workers slightly more than minimum wage and, as you mentioned, can bear the brunt of a wage hike much more easily than a smaller firm can. The main issue with the minimum wage is simple. Employers actually don't *have* to hire you at $7.25 an hour. They can pay you $0 an hour in exchange for no work (they can fire you). If hiring a particular worker earns the employer a loss, they're better off not employing them at all. I doubt the same can be said for the worker.

@Chris-py5nd

10 жыл бұрын

Gotenks I dont know what state you live in but I'm from Texas aka the minimum wage capitol of America and Im a night manager of a meat market for a multi million dollar company with over 20 locations in the Houston area and I get paid 9.00 an hour and thats AFTER 2 raises, and yes I work full time and Im barely scraping by, yes I have a high school diploma and go to college. So while you and your friends got lucky and rake in 1000+ a week just remember me and the single mothers doing what we can to get by while being under payed while you sit back and make your fucked up snide ignorant comments

@Gotenks712

10 жыл бұрын

Christopher Tannehill Well whats keeping you in that job? Why would you put up with being THAT underpaid? If that job is just helping you get by while you're in college then fine, but I'm sure you don't plan on staying there for the rest of your life... and if you do, then what's the point of going to college? The same could be said about single mothers working two minimum wage jobs to make ends meet while their children are yearning for their love and embrace in daycare or school/afterschool programs. Why would you put your kid through that? That's just horrible. Its fucked up and ignorant of the single mother to think that they can do all of that and still be a good parent. Get a real job, it's as simple as that. McD's was not meant to be a career, increasing the minimum wage will not change that.

@bad1173

3 жыл бұрын

@@Chris-py5nd Sir if you think you were getting underpaid then why not leave? If the wage is so terrible why would anyone stay? Is it because you'd have to actually go out and look for other jobs? I know it burdensome but when I didnt like my job fr 12$/hr I found another job for 20$/hr got it then quit my old one. Its really simple (it helped I didnt have the knowledge of a peanut and had experience from OTHER jobs I quit where I wasnt making enough. Funny how that works, the low paying jobs gave experience for higher paying jobs where experience was needed. Fuck me man I might just be an economist

At a burger joint with ridiculously thin margins, this is realistic. However, fast food franchises do not operate on such razor-thin margins. In this extremely oversimplified example, consider that the owner of the hypothetical burger place, is only making $7/hr from his employees BEFORE the hypothetical increase in minimum wage. All things being equal, he would actually be better off firing ALL of the workers, and just flipping burgers himself. This video completely ignores that any business operating on such a thin margin is likely to fail at the slightest increase in costs of any sort, not just wages. It also ignores that many companies that pay minimum wages have profits in the millions to billions of dollars. It also ignores the fact that the demand for unskilled work is so high that increases in efficiency by one worker are meaningless when another, less efficient worker can produce a higher profit by paying him less. tl;dr: This video was produced by people with an agenda and represents an unrealistic situation and ignores important details. The creators of this should be ashamed of themselves for spreading misinformation.

@orionsghost9511

5 жыл бұрын

Jonathan, I agree that it is oversimplified and works in a vacuum that doesn't take other factors into effect - many of which are direct and well-documented factors about pricing and profitability.

@redseagaming7832

3 жыл бұрын

The reason why McDonald's can afford the minimum wage is because they have multiple locations if one branch is not doing well the other branches will pick up the slack but small privately owned restaurants where you might have one or two locations can't really afford the minimum wage

@christianvega3850

3 жыл бұрын

If that was the case, then why doesn't everybody open a burger joint?

Yeah you're right. As a professional head hunter I'm often looking for fry cooks and burger flippers. No disrespect to honest working people, but everyone is re trainable for your job, I'd take the owner 2 seconds to find a new worker. A raise is a luxury not a guaranteed reward of hard work

I'm not sure to whom you are responding. When SSky06 said that "the difference between $12 and $8 an hour...is miniscule," he was referring to the miniscule difference in profit to the owner. He was not saying that the difference is miniscule to the worker.

3:18 Man, wouldn't it be awesome if that was the way the world worked? Unfortunately, in today's job market, that is not how it goes. As long as there are more people than jobs, people are gonna stay RIGHT where they are, regardless of their performance. When was the last time Mcdonalds stole a burger flipper from Burger King?

@FletchforFreedom

10 жыл бұрын

Since, of course, in the real world (as has been proved repeatedly) that's exactly how the world works and the number of unemployed has exactly as much impact as inventory on a store shelf depresses the price of the items in the inventory (it doesn't). And turnover in fast food happens quite a bit.

@timdavis1988

10 жыл бұрын

i am betting you are more like Carl in this example.

Higher wages stimulates the economy creating more need for workers!

@nikolasmichael6377

8 жыл бұрын

Proof of Truth in Politics When wages raise, so does the cost of living because demand rises as a result. So the people making minimum wage now would still be in the same position in the next few years because raising the minimum wage doesn't create wealth, it just redistributes it. So by raising minimum wage, people lose jobs, cost for goods and services rise and poor are just in a worst position then they were before.

@proofoftruthinpolitics1809

8 жыл бұрын

When unions were strong wages were higher and the economy thrived. In the depression wages were very low, there was little work to be had. Yes, there are extreme examples. Are you suggesting workers would be better off with no minimum wage? If so, you are brain washed, because I know you aren't stupid. Folks that claim there should be no minimum wage give no thought to history or are propagandists IMHO At the turn of the century working for literally starvation wages was very common. Later, Henry Ford had the brilliant iinsight to raise his factory wokers' wages to an unheard of $5.00, which was highly controversial. He wanted his workers to be able to by a car that they made. Guess what FORD BECAME HUGELY SUCCESSFUL. Higher wages stimulated the economy at large, This is not some leftist talking point. It's history. Wake the fuck up and stop being a fox news wana be. You should be better than that. Or do you aspire to be propaganda drone?

@proofoftruthinpolitics1809

8 жыл бұрын

Nikolas Michael I am sorry I can not edit my other reply. It was late, I was tired and cranky. I apologize for the aggressive language.

@OMGltsFred

8 жыл бұрын

Proof of Truth in Politics the solution is to learn the people, not to buy products from companies who hire people with awful wages.. Will this take generations? Yes, most likely. But if we start today, the future will be sooner then you think. We also need to raise good moral children, so when these children grow up, they will feel terrible exploiting people with low wages, so they won't do it.

@Zajecik

8 жыл бұрын

Proof of Truth in Politics But you are aware that the reason some labor jobs exist just because they are cheaper than current technology alternative right ?

I can understand a minimum wage equal to the value of a "big mac", or some other object or group of objects that would change value with inflation. For example our "big mac" might cost $1.00 at the time it is enacted but would change as inflation does then there would be no need to adjust the minimum wage. I also understand that some people really need an entry level job so that the owner is willing to take the risk of hiring someone so the minimum needs to be very low.

Thanks for your great videos.

This video is completely one sided. It doesn't mention that the minimum wage has not kept up with inflation - if it had, it would be over $20/hour. It doesn't mention the pay ratio between CEOs and workers has shifted drastically in favor of CEOs and higher officials (from 1978-2011, CEO compensation rose 726.7%, while worker compensation rose 5.7%, numbers from the Economic Policy Institute). Saying only that raising the minimum wage will force employers to fire employees is extremely deceptive. They could also make their wages fairer, and history shows that a higher minimum wage does NOT cripple the economy, or result in everyone losing their jobs. It is also deceptive in the numbers it uses. If a company makes only $2 an hour from an employee, yes, a small change it the minimum wage would be significant. But if the video had chosen to use $8 instead, raising the minimum wage would only mildly decrease the profit margin. This particular example can be slanted any way the teller likes, simply by choosing different numbers. No sources are provided to suggest that $2 an hour is a more common or realistic figure than $4, or $6, or 8$, and so on. Very disappointed with this video.

@redram5150

10 жыл бұрын

First, you're basing CEO wages as if someone earning a $10M salary is standard. Most companies can't afford to do that. Proper comparison would be median CEO salary. And if multimillion dollar salaries bother you that much, vote with your dollar and go elsewhere. Companies cannot afford such trifles without money. Secondly, even in other nations, minimum wage can be lower than the US. take Australia for example. Even though the common argument is they offer a ~$16.50 minimum wage; The reality is it only applies to those 21 and older. 18 year olds earn less per hour as a minimum wage than Americans. This is meant to reflect the limited skills of teens. And as a result, retail and fast food positions are almost entirely comprised of that group because there is no incentive hiring a 21 year old for over twice the hourly price. On top of that, when Australia increased teenage minimum wage several years ago, the result was higher unemployment among teens as retailers and restaurants maximized the productivity of smaller workforces.

@Lywelyn1994

10 жыл бұрын

K ris If the minimum wage had remained constant, CEOs for major companies would be slightly less fabulously wealthy, while CEOs for minor companies wouldn't be as much wealthier than their employees as they are today. My point is that CEOs/important officials/people that head major companies in general are richer than they should be. They have the ability to give themselves these benefits while not helping workers. That's my issue. And I don't go to Wal-Mart for that very reason. Australia still has lower unemployment in general, as well as lower unemployment among teens. And again, I'm not denying that some companies would choose to cut jobs. I'm saying (and this is opinion) that almost every company could reduce excessively high salaries (even if not in the millions) and bonuses, instead. Regardless, I spent all day arguing politics on another video, and I don't really feel like doing it again (though you seem like a much more polite and rational person than the others). So, I want to be clear that I wasn't trying to make an absolute statement about whether or not raising the minimum wage is good, but rather to point out the the video only attempts to present one side, and uses some examples that are easily misleading. Again, I'm disappointed in the video, not because I think it's absolutely wrong about everything, but rather because it's selling an unrealistically one-sided message, and doing it in a rather questionable way.

Having a high minimum wage here is the reason why nearly all our shoes, shirts, pants, toys, furniture, jackets, and other things are made outside of the US.

@The1234heythere1

10 жыл бұрын

The reason is that the investors want a greater profit, not because they weren't making a profit.

@JohnDoe-pt4mc

10 жыл бұрын

Yes, but they're making a greater profit by outsourcing the manufacturing because the cost of labor elsewhere is cheaper. Businesses shouldn't have to offer a minimum wage. That only discourages business.

@SomeGuyWhoPlaysGames333

8 жыл бұрын

Yes, they are made in East Asia where workers make $.35 an hour.

Thank you. I'm glad someone in this comment section actually gets it.

I'm trying to get educated on this economy stuff so could some one help? If the FED prints out more money doesn't that decrease the purchasing power of the dollar, so wouldn't it make sense to increase the minimum wage so that people could get some of that purchasing power?

What's the counter argument to this? That there should be no minimum wage or that the the minimum wage needs to be more carefully determined in regards cost of living, inflation or other factors? If the minimum wage was scrapped overnight what would happen to Al, Bob and Carl? Would their employer perhaps move them to a piece rate where they're paid per burger flipped to improve productivity? Or would their hourly rate be cut to the point where performing the job was marginally better than unemployment benefit? Should Al, Bob and Carl form a union and collectively bargain for an hourly rate? What's Learn Liberty's thought on this, I wonder.

@FletchforFreedom

10 жыл бұрын

Yes, the best alternative is no minimum wage at all. In its absence, nothing would change for Al, Bob and Carl as they would not already be employed if they were not generating a return sufficient to cover their costs (and, as the video notes, the more productive workers would still earn raises for that very reason. There is literally no chance (consistent with both economic theory and the empirical evidence) that wages would plummet. And the impact of an artificial hike in wages is the same regardless of whether it's imposed by law or by collective bargaining.

@DavidHeffron78

10 жыл бұрын

FletchforFreedom nothing world change except they'd be making less money as their employers would cut their wages immediately to marginally more than unemployment benefits.

@FletchforFreedom

10 жыл бұрын

David Heffron No such cuts are even possible, let alone a foregone conclusion. Jobs are not created unless they generate a return for the employer so a price floor simply renders those who cannot generate such a return unemployable. No employer can pay either more *or less* than the market wage. Else competitors will take those employees away and the company would go under. The worker gets paid according to their marginal revenue product - that is, what they can generate less the cost of their employment. Put simply, the market wage is what they are objectively "worth". If the race-to-the-bottom rhetoric were not completely contrary to reality, nearly everyone would be paid the minimum wand moving up would be nearly impossible. Instead, only 2.5% of the workforce makes the minimum or less, nearly 2/3 are part-timers and 60% are secondary income earners. The notion that wages would plummet is contrary to economic theory and empirical reality.

@DavidHeffron78

10 жыл бұрын

FletchforFreedom Gosh, where to start? 1. If the $8 was the minimum wage, then all employers would seek to cut this as soon as possible. Why wouldn't they. 2. Of course an employer can pay more than the market wage if they so choose. 3. You assume that there's an infinite capacity for alternate employers to take away employers.

@FletchforFreedom

10 жыл бұрын

David Heffron 1. If the $8 was the minimum wage, then employers would either cut employees that don’t generate sufficient return outright or cut hours, benefits and training to curb costs (because in some cases, the cost of firing an employee can be prohibitive) until equilibrium can be reestablished. This has happened every time the minimum wage has been hiked. If the minimum is already over $8, the only thing that would happen is that some who could not be employed under the higher minimum could now be employed. No change would occur to those already working (or they wouldn’t have been employed anyway). 2. Of course an employer can’t pay more than the market wage. If they do so, they will rapidly become uncompetitive and go out of business as competitors undercut them. 3. I make no assumptions of any kind. All that is necessary is the presence of a competitive market for labor. And that requires no assumption at all - just the recognition of reality.

I went to college, got a degree, then got a salaried career because I didn't want to be bitching about my job that any person in high school can get and complain about why I'm not making more.

@onyourmom6886

10 жыл бұрын

because no one care about your opinion. simply

@righthook51

10 жыл бұрын

Ferrenoak fernz great contribution to the conversation, your input was fantastic! Sorry if I'm too ambitious for you, I got my career at 23 years old, about to buy a house and am planning my wedding. Do hard times fall on people? yeah of course. Are there really stupid people out there that do not understand the markets and how it works? of course. But let's be honest, the government isn't exactly encouraging businesses to expand.

@righthook51

10 жыл бұрын

I teach ECON and GOVT. and sell life insurance during the summer. I use several of these videos in my class, as well as more liberal ones.

@righthook51

9 жыл бұрын

***** Oh I understand that, but the arguments in other comments make it seem like just because a low skilled, entry level job is being worked by an adult with kids that we magically pay that person more. The burger flipper decided to have kids, decided not to pursue management. The entire point of fast food is that it is cheap and convenient. It can't still be cheap when labor costs are being driven up by bleeding hearts.

This is why you don't raise the minimum wage from $7.25/hr or $50/hr to $1000 per hour. You raise the minimum wage steadily with inflation. The cost of living varies regionally which is why certain states have the minimum wage set higher than others, but as national cost of living increases, the minimum wage should increase with it.

I think the simpletons in the comments don't realize that this video was focusing on one aspect of minimum wage and wasn't trying to show all the problems. Although i agree that the owner would cut the hours of the worker before firing them, it does a good job showing exactly what happens in this aspect of minimum wage.

The problem with this argument is that it assumes the business is making only a small profit off its employees labour. In reality it would be much more inclusive of the average workers environment if we were to use the following example Bob generates $100's of profit an hour for his employee and is paid $10. Meaning the employer makes $90's an hour. Minimum wage law is in acted bob is paid $15 and the employer now makes $85. I live in Australia we have a minimum wage of $17.29 per hour. Our economy is doing great.

@LearnLiberty

8 жыл бұрын

+Louis Stekhoven-Smith Something else to consider: Prof. Davies articulates why minimum wage laws (like all price controls) can be problematic. kzread.info/dash/bejne/f2Z2j9mpdc2Tac4.html

@alfonso6558

8 жыл бұрын

I guess that depends on the country. I don't know about the USA or Australia, but here in my country there are many people with low wages, so they think the solution is just raising the minimum wage, when in reality, the ones who have been affected the most by the 2008 crisis are the small businesses, which employ 90% of the population, and raising the minimum wage would literally destroy our economy.

@alfonso6558

8 жыл бұрын

DeathToTheDictators My country is Spain, but most of the losses of the 2008 crisis were assumed by the businesses, and not by the workers. And yes, workers don't have very nice wages, but we have to see the whole picture. Employers here are not earning a lot of money either. And higher wages don't necessarily mean more spending, it's just a form of redistributing wealth from employers to employees. This might probably work in a hypothetical country where employers are a bunch of millionaire capitalists that are exploiting their employees, but that's not our situation. If you make the situation of the employer (who is the one who creates the jobs) worse, then he will have to fire more people and productivity would go down.

@alfonso6558

8 жыл бұрын

DeathToTheDictators As I said, I'm not aware of the situation of the USA, so I'm not going to give my opinion on that. You are right that the consumers create jobs, but if employers don't see the opportunity to get benefits, they won't create those jobs. What most people think is that if you raise the minimum wage, people earn more money, they spend more, and therefore, they create more jobs. But, I think it is extremely dangerous to raise the minimum wage in a situation were most employers are poor, and even if it might work, I'm quite sure that what would really happen is that employers would be even worse (they are already in a bad situation), and more jobs are going to be destroyed. I agree with you that we need to have more consumption to create jobs, but I think the best way to do that is to reduce taxes and reduce spending, not like our government did, that means, raising taxes and therefore destroying consumption, which made unemployment even higher. Most people think more spending is the solution, but doing so when you have 5% of deficit already and a debt of more than 100% of GDP is quite dangerous. We already tried raising government spending with our last government, and unemployment didn't go down, and there was no economic growth. The only thing that did grow was our deficit and our debt. The best thing they could do now is to reduce the deficit, start paying our debt, reduce unnecessary spending (we have a lot of that in Spain) and reduce taxes, specially to the low and middle class. If we did that, investment would be encouraged, and people would earn more money because they would pay less taxes.

@alfonso6558

8 жыл бұрын

DeathToTheDictators As I have already said, we have 5% of deficit right now, and our debt is more than 100% of our GDP. Do you think that's too low? The only think we have to try is cut spending and reduce taxes to increase investment and consumerism. The problem with creating jobs in the public sector is the following: in what? Just create jobs in anything to spend more? Jobs must be created in those sectors where there is demand, and only the market knows that, not the government. Having thousands of people building highways and bridges just for the sake of employing people would not lead us anywhere. Also, we have to take into account that most of those jobs mean more spending for the government, so that implies more deficit, or more taxes, and we have a lot of those already. We had a stimulus program in 2009, and it just created some jobs temporarily, it did not boost the economy as they said it would, and it just made our debt larger. Both our deficit and our debt are way too large right now. We HAVE to cut government spending now and people have to pay less taxes if we want our economy to recover. We have to encourage investment, not just create government jobs in any sector of the economy.

There seems to be a double standard with those against min. wage increase. Russ Roberts (Of the Hoover Institute) argues that stimulus has no lasting effect, since companies will hold onto workers even in a downturn of more than a year, yet apparently min. wage will cause companies to lay off employees over $0.50/hr? Madness. Furthermore, what about accounting for inflation since 1960s? Min. wage would be way into double figures. Executive pay increase has been phenomenal while employees on the low end get almost nothing. Are employers going to magically make two people do three people's jobs? No. The industry would adapt

@LiouTao

10 жыл бұрын

Well, Libertarians believes minimum wage is best set by the free market. Currently the average wage for most entry level workers is actually not minimum wage, but somewhere higher in the 7,50~8,00 range. Anyways, point isn't that minimum wage is bad. Point is that you can't just raise minimum wage and expect everything to magically become good. The economy doesn't work that way. You have to consider the costs and benefits, etc etc.

@TomKilworth

10 жыл бұрын

LiouTao Obviously. But remember, the minimum wage exists today because the free market did not dictate fair wages. Personally, I think there should be tier system for minimum wage. It might be a little more expensive to run, but it should keep more money in circulation within the economy, rather than have it sitting in a bank account off-shore.

@LiouTao

10 жыл бұрын

Free market does dictate wages. Again, as I've said, most entry level jobs in these low paying sectors don't pay minimum wage. Each person is worth a certain amount based upon the labour/profit he can provide to a company. That's the leverage the person has to negotiate for a just wage. There's always another company looking for good workers if your company doesn't want to pay what's just. Raising the minimum wage wouldn't put more money into circulation, that's just bogus. Raising the minimum wage would means those workers who can't profit would be laid off, raising the unemployement rate. That's going to REMOVE money from circulation because now you have less consumers. People won't save because prices have gotten higher, people will spend more due to increased prices, the difference is that the goods they buy are less, meaning industrial production has to shrink to accomodate for the decrease in demand. Also, you have the false notion that more money in circulation is a good thing. More money in circulation generally means higher prices due to a higher money supply. That's what caused the housing bubble in the first place. Clinton's law for affordable housing lowered requirements for people to borrow money to buy houses. This not only raises demand because more people can now buy houses, it also raises prices because people have more money to bid for the houses. By putting more money into circulation, you not only increased demand, but inflation as well causing prices to rise.

@TomKilworth

10 жыл бұрын

LiouTao I see your point, and I'm genuinely out to learn on this one. I'd contest your point about "There's always another company looking for good workers". I'm sure you know the jobs numbers, but to give you an anecdote, I worked as a bar manager for 18 months a couple of years back, and I was paid bang on minimum wage until they promoted me. Then I was only on 4p above min. wage. I said I would leave to find another job if they didn't pay more, but they knew this was an empty threat and kept me on £6.23/hr. On a typical night, I could do c.£100 of transactions per hour. I was worth a lot more than £6.23, but that made no change to my bargaining power. The company boasted increased profits even through the recession, but reacted to the stats by cutting employees perks, like free coffee and tea. The free market does not work they way you claim, in my view. I'm interested to hear what you have to say though :)

@LiouTao

10 жыл бұрын

Why didn't you go to another bar? That's what any sensible person would do. I worked at a past food joint at min wage (7,25) for about 6 months, after 6 months I left for another fast food joint who paid me 8,00. It was a seasonal job though, and I eventually went back to my old job, who offered me 8,00 to stay. From then on, I never took a job that payed less than 8,00. Don't make empty threats, if they won't give you a raise, leave for another job. Also, understand the industry. Some industries like fast food places are low pay, don't expect to make too much from those places because even if you're worth more, it depends on what your company can afford to pay you. If they aren't making much money to begin with, they can't give you a raise. If the industrial pay for bartenders is low all around, switch industries. That's what I did (went into retail which paid more). BTW, I thought bartenders makes money off tips as well. Isn't that supposed to be their main source of income?

Great video!

So a question to all who thinks that the minimum wage should be increased or that we should even have one. How is it that a great many countries such as Denmark manage to get by without a government mandated minimum wage?

Of course, there's the economics professor Robert Reich argument as well, where he argues that minimum wage increases adds millions back into the economy from increased spending, which in turn makes increased demand for jobs. Second, it doesn't push towards outsourcing or automation, since jobs like flipping burgers cannot be outsourced or automated. I think there is validity in both arguments. It seems like Antony Davies argues from a strictly shortsighted business POV, where this kind of logic works, whereas Reich seems to be arguing from a "several years down the road" POV.

@leafster1337

3 жыл бұрын

short to long (say 1-6 quarters) term turmoil will significantly slow down growth and lower stability as the value of the labor does not change and a company’s whole system has to change to compensate to a new monetary standard. over the long term, prices have increased because either businesses charging more because of premium labor or restructured business model (example being car washes, but quality has worsened as well here) or short supply because there’re less businesses to meet demand. over time we have to inflate to match values up again, or we just have no min wage laws. search up minimum wage laws for handicapped (i think) people in california; there is none (i think) because most likely they aren’t worth the min wage, so they’d never get a job and experience (or independent money)

Minimum wage also is the sole culprit of black unemployment as well.

@thomasthetans

10 жыл бұрын

I'm clueless? The minimum wage was brought in to prevent blacks in the south from working. More blacks were employed in the U.S. before the great depression. You clueless twit.

Whoops, I meant "are" sound.

Prof Davies is spot on point. During the 2000s every single increase in the minimum wage also increased unemployment in that demographic by 25%. Only 1.5% of the working population earn minimum wage. Their contribution to consumer spending is not even a rounding error.

Employers still have to employ enough workers to meet demand (or they lose customers), and may be forced to raise prices to do so. I would much rather see burger prices go up than the travesty we have now where people can work 16 hour a days and not be able to afford basic necessities.

@ianfischer2812

10 жыл бұрын

If burger prices go up, people may not want to buy them. If people aren't buying them, then they may not generate the wealth to keep open. If that business can't stay open, that worker loses his job. American basic necessities are a compilation of high expectations. I made enough in highschool doing part time work to be considered wealthy by the standard of people I've met in various parts of the world.

@dlbattle100

10 жыл бұрын

I'm of the opinion that if not everyone who is willing and able to work has something to do, we need to raise our expectations higher, not lower them. High expectations = lots of jobs to fill those expectations.

@edwaggonersr.7446

10 жыл бұрын

Our refrigerators and stove tops are the biggest competition restaurants have to compete with, therefore restaurants can't always raise their prices. I think this would apply more to fast food restaurants, that pay lower wages, than to the high end restaurants that generally pay much higher wages. I rarely buy $7 comb meals, because I can make a burger at home for less than $3.

@woodsrr69

10 жыл бұрын

David Battle David, you are looking at this in a simplistic way. Let’s say you are willing to pay more not just for that burger but every place affected by the wage increase. You pay more at the grocery store because all the companies who produce food have to pay more, the store owners have to pay more, etc. You will have to pay more everywhere because this globally affects everything that uses a worker. It is known that minimum wage when increased also increases the rate of inflation, which in turn makes the dollar worth less. So what about the elderly who are on a fixed income? They are retired and don’t have any more money coming in but now have to suffer because your wage increase made their retirement dollars worth less. Why do you think the minimum wage keeps getting increased every so often? It is because when it was last raised, it made the dollar worth less and it made everything cost more, so within a few years the people who are making minimum wages are right back where they are now. In the meantime, everyone else is making less because of the increase inflation rate and the people on fixed incomes on the ones most hurt. Now compare that to the global economy… what do you think happens when the U.S. dollar is worth less? This is bad on so many levels and is a Band-Aid fix that leaves America with a sucking chest wound in the long run.

@SFuNk24

10 жыл бұрын

The saddest thing to me is that really hurts the people it is intended to help the most. The rise in cost for cheap goods will affect the low income workers the most, as will the reduction in jobs.

Seattle is a real world example that would suggest that this video's viewpoint is wrong.

@FletchforFreedom

7 жыл бұрын

Actually, Seattle is a real world example demonstrating that this video is completely correct. The disemployment effect in Seattle has been empirically demonstrated.

@virginiasaintj

7 жыл бұрын

p0pp4 Isn't it amazing a place that has less than a million well educated, high skilled people can support that? Let's apply the same logic to a country that has 315 million people all with different skill and education levels.

@ufodeath

7 жыл бұрын

Corporate profits across the board are vastly higher compared to the wages of a typical blue-collar wages. Even after corporate reinvestment, 15-20$ minimum wage could easily be afforded without hurting the operation of companies in the economy. To believe that it could, would ironically be an extreme level of economic ignorance detached from the reality.

@FletchforFreedom

7 жыл бұрын

+Sokami Mashibe Once again your assertions are completely wrong. Again, it is an empirically proven fact that workers are paid no less than the risk adjusted marginal revenue product of the labor services they provide or, in layman;s terms, what those labor services are *actually worth". No employer can afford to lose money on any investment, including workers, so it will never happen, no matter how high an artificial price floor is set - which is why minimum wage laws have never resulted in anything but disemployment, most notably job loss. This is all basic economics (buttressed by empirical evidence). To believe your position is to demonstrate "an extreme level of economic ignorance detached from reality" ... as you have.

@FletchforFreedom

7 жыл бұрын

Yes, you are still dumb as ever. It takes a very special type of blithering idiot to fall for the long debunked Marxian notion that profit is evidence of exploitation. It has long been demonstrated that such a belief is conclusive proof of zero brain activity. Profit is nether more nor less than the just price charged for the provision of capital and the assumption of risk without which the job (activity) would not exist (take place). It is not extracted or exploited from anyone. This is why Marxists are universally recognized by those with even the most tenuous grasp of economics, history or reality as the metal midgets of the world. And you keep trying to demonstrate that you should be their chief. Please keep posting. Not only do you demonstrate that you're still dumb as ever, you make everyone else look positively brilliant by comparison.

At the $8 minimum wage, there were three people hired, which is $24 total in wages from the employer. At the $9.5 minimum wage, there were two people hired, which is $19 total in wages from the employer. So which scenario pays more money to the employees to spend in TOTAL?

Though the mathematical models of economic theory or sound, the variables plugged into said models are open to multiple interpretation thus making the conclusions dubious and the science soft.

Yes, because economies are linear, and talent scouts are lining up the streets outside burger joints in search of the best and the brightest. Everyone knows this! Say no to livable wages!

@FletchforFreedom

9 жыл бұрын

No one said anything about economies being "linear". That burger joints compete with each other for labor is empirical fact. And whether or not someone makes a "livable wage" is irrelevant - essentially no one is trying to live on the minimum wage and raising it has never done anything beneficial, instead only resulting in reduced hours, benefits and training and outright job loss. Perhaps is you understood the topic, you wouldn't engage in a straw man festival.

@kreaturen

9 жыл бұрын

FletchforFreedom What I meant is that the price of burgers isn't constant. In this example you could simply rise the price of the burgers by one cent in order for the owner to retain profit for all his workers. The cost of supplies per burger would go up one or two cents too of course, but the owner wouldn't have to increase the price of one burger by more than 5 cents at most. In other words not so much that it would scare customers away. That burger joints compete for labor is fact, but the notion that if burger joint A doesn't give you a deserved raise, then you are likely to be offered one by burger joint B is not empirically true. There are people trying to live off minimum wage jobs. These people receive massive amounts of benefits because they can't get ends to meet. If you increase their wages, they will receive less benefits, and thus won't immediately get it better, but your government will save money, which is important at the moment too. And why is reduced hours a problem for you? Would you rather your kid flipping burgers all day, or would you want it to study more? Reduced hours for those who are not dependent on low income jobs for sustenance would free up positions for people who are currently unemployed or unemployable at the moment.

@FletchforFreedom

9 жыл бұрын

kreaturen While it is true that the price of burgers isn't constant, the penny figure is woefully small and, in fact, raising prices in the long term is objectively not a viable option. Demand elasticities in labor intensive industries like fast food are incredibly high. Very small increases in prices result in material reductions in demand (in other words, it has been empirically demonstrated that such small price increases do, in fact, "scare people away" even if each customer just goes to a fast food restaurant just one less time per year, this multiplies rapidly). This is why, ultimately, the result of minimum wage hikes has always been very short term inflation but, in the long-run, it merely results in lower employment than there would otherwise be. This is what has happened every time the minimum wage has been raised. That burger joints compete for labor is fact, and the notion that if burger joint A doesn't give you a deserved raise, then you are likely to be offered one by burger joint B is empirically true. Such labor shifts happen literally all the time. This is not to say that if any individual worker doesn't get a deserved raise, the competitor will seek him out, but that message that other restaurants pay better is easily found (and often common knowledge) and people change jobs for more money (that the other restaurant is willing to pay) all the time. Virtually *no one* is trying to live on the minimum wage, Only 1.5% of workers in the US make the minimum wage or less and 60% of them are secondary income earners living with someone making more - usually far more. And poverty is not the result of inadequate wages, but inadequate employment (most in poverty do not work at all). Minimum wage jobs are often a first step *out* of poverty (the average time before a first raise is 6 to 9 months). The "subsidization" myth has been long debunked. Raising the minimum wage has, instead, been found to *increase* welfare rolls (not to mention unemployment). It costs *more* money - not less. And reduced hours are a problem for the worker who needs his $8/hr for 40 hours but, because the employer can't afford the outlay (until the worker who isn't worth the higher pay leaves of his own accord), responds to an increase in the minimum wage to $10/hr by reducing his hours to 30 (often to a level at which the worker is no longer eligible for benefits). How does that reduction in hours help him out? This reduction doesn't magically create resources to pay someone else. The minimum wage doesn't create jobs; it kills them.

@TheGoldeagle99

9 жыл бұрын

FletchforFreedom u seem pretty intelligent when it comes to this info. I was wondering have you read the book 'basic economics' by Thomas sowell? I haven't but plan to

Video is almost completely ancedotal. Actual evidence usually points that raising minimum wage actually increases employement. It may sound backwards, but it's true. The reason being is that higher minimum wages cause a downward distribution of wealth. Sure, a business may not be able to hire as many people (although many can), but competitors who ARE willing to up how much they pay will have more workers compared to those who don't. This means they increase significantly in market share. This in turn means that companies whose practices aren't dependent on scalping their workers see a lot more businesses and growth, and thus hire more... and they usually hire in a way that matches their previous practices. Thus, significant job growth. In addition, it goes farther than that. When you raise minimum wage, and you get a short-term drop in employment before the later hefty rise and market shares shift, you see a number of the freshly unemployed take up self-employment. With the decreasing size of the company that fired them, quite often the self-employed have a better chance. Because even though supply went down, demand did not. In times of rising minimum wage, new businesses flourish, ones adapted to the new minimum wage, and can squeeze out outdated businesses that were working with starvation wages. In short, raising minimum wage is good for increasing the jobs available. History has proven this time and time again.

@rocsaltjohn

10 жыл бұрын

You've missed something. More wages=less profit. The only way he rasies his prices is his competitors do the same. In our little example here what the owner would have _really_ done is fired Carl and made the other two do more. That's what increasing costs in business does. You see then the owner makes _more_ money and pays less. Now will he make as much? No, but what he loses he'll make up by not paying an extra person. That's how you run a fast-food restaurant. You may reply "his service will degrade and he'll lose business". Your right on the service thing but it has become a reality that it really doesn't matter to the customer anymore. If they can get a pizza for five bucks, or a McDouble for a dollar, they can handle less then stellar customer service because after all, it's only five bucks...its only a dollar! So while "giving" people more many looks good on paper, rich people stay rich. They know how to do it.

@starfyredragon

10 жыл бұрын

Frank Patek You're making a mistake to assume more wages means less profit. Quite often it's the exact opposite. There have been studies on that one. (And if you deny it, just compare Costco and Winco vs Walmart. Costco and Winco are making more profit per employee, because they pay them better.) The reason is simple: When you pay an employee, not only are you trading money for service, you're investing in that employee. After controlling for ability, studies across the workforce found that one employee paid 60K a year will routinely outperform two employees getting paid 30K a year. This is because a 60K employee has enough to feed his family so he doesn't worry about them while at work, pay for his medical bills so he isn't in pain that distracts him from work, get a car that doesn't break down which might make him late for work, get dental and healthy food so he gets better nutrition and his mind is sharper, get regular vision checkups so he can see the forms, take more elaborate vacations to where the R&R will actually relax him, have the money to invest in his goals so he feels grateful to the job enough to actually care about it. Paying people more is smart business sense in long-term business practice. The only reason it's not that way is predatory CEOs (the ones who give CEOs a bad name) go from company to company slashing immediate costs and then get out before the long-term fallout kick in so it artificially boost their numbers and they blame the fall on the following CEO. It's a common tactic and I've seen it first hand. As far as his service degrading and him losing business, not only does it drop quality, but it also drops the quantity gains that would have been gained by adding more people. While the neighboring business that actually decided to cut into profits a little to pay employees more instead of laying them off, will find that their competitors are crippled, and boom, instant market-share increase. Increasing minimum wage is good for employees, good for businesses that prepare for it, and good for the economy.

@LiouTao

10 жыл бұрын

Ahaha, this is too funny. Please take a look at Davies' research before calling it anecdoctal. Higher wage does NOT cause a higher downward 'distribution of wealth'. First of all, wealth is not distributed, it's accumulated. You're talking about income, which is completely different from wealth. Second, historical data has shown the raises in the minimum wage causes an increase in UNEMPLOYMENT amongst the lowest skilled population. Raise the cost of capital and the employers will simply buy less. You need to finance increased costs of labour increases, the costs don't magically pay for itself. Businesses have three ways to do this: 1. Cut Profits 2. Increase Price 3. Cut labour Cutting profits means driving away investors, that's why businesses are wary to do this. Increasing prices is incredibly difficult in a competitive environment, so what's left is cutting labour. How does businesses choose whom to fire? They fire the least skilled and productive workers, usually translating to those with the least education and young entry level workers. Also, minimum wages are most often seen in small businesses. The median wage in places such as walmart are typically higher. If you raise the minimum wage, not only are the least skilled hurt the most, so are the small businesses. That's why Walmart was advocating for minimum wage to be raised, to kill off small business competition.

@starfyredragon

10 жыл бұрын

deathByStupid Here, I'll answer youre entire post with one sentence: You fix problems with imports/exports with rules on imports/exports (such as tariffs), not by bending your whole country's internal system to external whims.

@starfyredragon

10 жыл бұрын

LiouTao You are wrong. Not a "I disagree with you" wrong (although that's true too) but your facts are incorrect. Historical data does NOT show what you claim it does. The NWL's studies have shown that a $2 increase of minimum wage would increase the job count (including low employment ones) by 100,000. The state of Washington has one of the highest minimum wages, has been steadily raising it, and has seen the most steady job growth. When you match the federal minimum wage (when adjusted to inflation) and compare it to job creation, you'll find that increases to minimum wage match with times of increased jobs, and decreases in the minimum wage (due to inflation) there is a decrease in the amount of jobs. Further, you misunderstand what an actual investor is. You prove it by this line: "Cutting profits drives away investors." A business that is drawing investors (initial sale of stock) hasn't been profitable yet, that's WHY they're selling to investors. No profitable business in its right mind would SELL stock. Once that stock is sold, people buying and selling that stock generates NO money for that business. People who sell stock and leave do not hurt the business in the slightest. In fact, it can actually help, because that business might dip into their profits to buy some of that stock back. This means they get to keep more of their profits. People that buy and sell stocks because a business is doing well or bad respectively aren't investors, but stock traders. "The median wage in places such as walmart are typically higher." ... What? You seriously believe that? Wherever this fantasy world you're living in is where Walmart has a higher median wage must be filled with many exotic things to smoke. Walmart has more people working at minimum wage than anywhere else. It's so bad that multiple cities have tried to ban Walmarts from being allowing in their city limits, but whenever that happened, Walmart sues and gets the courts to overturn the city's ruling. The reason Walmart is pushing for higher minimum wage is because they've realized that most of the customers are paid minimum wage, and if their customers are paid more, their customers will have more to spend there. They AREN'T raising their own minimum wage on themselves until they have to. Minimum wage also does not kill off small businesses. Many small businesses are single-man businesses. This means they're literally unaffected by minimum wage. Further, as larger businesses cut jobs, that reduced capability from larger businesses means more demand that is met by the single-man businesses which often find end up making enough profit to expand their business and hire on people. Yes, some small businesses will fire and some large businesses will fire, but the small businesses that hire far outweigh them.

so what happened to a living standard wage?

what also could have happened is that the hamburger joint competitors would have an agreement to not pay above a certain level and not go after each others employees thereby keeping wages artificially low by not allowing the companies to compete for labor. Which is probably more likely.

@igorvuk4454

7 жыл бұрын

that would cause 2 scenarios; after time new empleyer would sprout with better productivity organization that could employ workers for better wage, steal best workers, take big piece of their market OR if country has institutions that are of high quality they would smack down cartels (because your scenario is cartel)

@FletchforFreedom

7 жыл бұрын

+Ed Brian Except, of course, industries with such low wages are so filled with competitors that such agreements are impossible to maintain - which is why the concept of "monopsony" for low wage workers has been empirically disproved.

@fdbrian7660

7 жыл бұрын

not in small markets

@FletchforFreedom

7 жыл бұрын

+Fd Bain In *every* market. There are no "small markets" for low or unskilled labor in market economies. Again, the condition you describe (monopsony) has been completely disproved. Try Googling "Monopsony in American Labor Markets" at EH. net (the premiere economic history site) and begin educating yourself.

@FletchforFreedom

7 жыл бұрын

+Fd Brian I'm not sure why your response appears in my inbox and not here, but I will respond in any event. I have lived and worked in smaller communities for much of my life. It doesn't change the fact that you haven't the slightest clue what you;re talking about. No such "small community" effect exists. It is an economic impossibility (and I've been an economist likely longer than you've been alive so I'm not merely speculating. I am completely familiar with the (hilarious) anti-trust legislation of which you speak. Even if the lawsuit were not completely without merit (not that there have been any anti-trust legislation examples, including Standard Oil and Microsoft, that had any merit regardless of outcome in the first place), it has nothing to do with low skilled or unskilled employees (for which there is no limited competition). Perhaps *you* should try educating yourself rather than cherry-picking data that doesn't support your case.

This is a gross misrepresentation of reality. Are we assuming that employers are barely breaking even at minimum wage? Tell that to McDonalds

Australia also has one of the highest rates of unemployment among young people, which is going to come back to bite them later on when there are a bunch of adults, unemployed with no skills. America has no problem paying skilled workers $15 or $20 an hour, it's the unskilled ones that need the work to acquire the skills in the first place.

The figures may be made up, but the logic behind it is sound. An employee who can't bring in the value of minimum wage to a company just isn't worth hiring, and they don't have the option of working at a lower wage to stay competitive.

Excellently explained.

Thailand is experiencing this very lesson. Minimum wage is raised. There are reports of high unemployment. What worse is business owners are tempted to seek illegal foreign workers because the lower wage can be extracted. After all, those workers do not want to involve in any complicated situation with the law.

An unconditional income would be better than min wage because Bob the owner would not need to rehire people because he would have people who really want to work, also with big corporations if min wage increases all they would do is get robotics implemented to a higher level and only hire only a few efficient workers which is already happening with big companies like Mcdonald's and Walmart.

Summed up nicely.

There are a few options I can think of that the employer can do to balance costs when there is an increase to minimum wage: 1) release workers which A) increases unemployment. 2) increase the prices which B) increases cost to consumers and possibly less business. 3) cheaper supplies which C) can lead to decreased quality. 4) increased production efficiency D) but it may not reduce total cost.

What is that?

bottom line is production is what creates income, not just being an owner of a company.

I appreciate this euphemism :)

Give all workers sound money and they won't have to worry about their dollar buying less every year. This is a monetary policy issue, not a payroll issue.

@orionsghost9511

5 жыл бұрын

Monetary policy is certianly a part of what is hurting workers.

Its insistence on the consistency and predictability of human behavior is where economics falls into a soft science (just like psychology and i'm glad you made that connection): though it uses mathematical models, the variables plugged into said models are open to multiple interpretations making its conclusions dubious.

Also the district manager told me to my face, that the company does not give raises, and promotions never came available within the two years I worked there. Needless to say I told the manager, "with no raises where is the incentive to do a good job? I will only do the minimum work for minimum pay."

The white elephant in the room is that no one would ever sell a burger for a 10c profit, and if minimum wage went up the price of the burgers would go up to account for that.

OooooKKKKK! Now let's hear your philosophy on the out of control executive and CEO compensation increases.

also omitted from this is that a 8.00 an hour worker would net a - profit in this example anyway due to income tax width-holdings, unemployment taxes, insurance costs, ect. it would certainly extend the time it takes for a company to afford employees and reduce profit from those already existing. i do not know how this would effect those already hired or those looking to be hired.

It's assumption of the predictability and consistency of human behavior are what make economics a soft science. Though it uses mathematical models, the variables plugged into said models are open to multiple interpretations thus making the conclusions dubious.

10 cents of profit on an entire prepared burger lmao

@redseagaming7832

3 жыл бұрын

It was an example some people like keeping their profits to themselves the $0.10 per Burger is just an idea of value

One thing these type of video's saying minimum wage hurts workers always seem to miss is that an employer hires workers when there is work to be done. If I start getting more customers that my existing workers can not handle the demand I will need to hire more workers or risk loosing business opportunity. What ever the cost of getting that worker is then reflected in the price of my good or service. The other thing to remember is that increasing the purchasing power of the poorest segment of the population increases the purchasing power of us all. People will be able to buy the goods they need and those store will in turn do better and will be able to hire more people.

Another thing to note is certain areas have different demand for jobs I live in a factory town in Indiana...without any education if you aren't making 500 a week you aren't using your full potential Rn in my area you can make 1k a week no education

History has already proven that there is not more than a 1% price increase of goods over-all for every 10% the minimum wage is raised. You also have to factor in the fact that most low paying industries are high volume. This means the price of a burger goes up 2 cents... not 2 dollars.

But when has a burger cost 10 cents while minimum wage was 8$?

@hamosin5993

2 жыл бұрын

You need to include the cost to make the burger

@GiRR007

2 жыл бұрын

You are mistakenly conflating the amount of PROFIT the owner gets from and selling the burger with how much the burger actually cost to the customer. The burger could cost like 5$ but it cost the owner 4.90 to make the burger. That is where the .10 cents is coming from.

Great examples of the minimum wage and how increasing it only hurts the most in need.