My city is meddling with the minimum wage

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OH MY GOD ANOTHER CITY RAISING THE MINIM—oh..

http://www.irvinecommunitynewsandviews.org/irvine-2/city-council-votes-to-cut-irvine-minimum-wage/
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While other cities across America, including West Coast cities like Seattle, San Francisco, Los Angeles, Long Beach and San Diego have been adopting ordinances raising their local minimum wage —  climbing toward a $15 per hour minimum wage by 2020 — Irvine is apparently America’s only major city headed in the other direction, actually cutting its minimum wage by more than 20%.

Councilmember Christina Shea and Mayor Steven Choi have been leading the effort to repeal Irvine’s “Living Wage” law — now set at a minimum of about $11 per hour (or about $13 per hour for those not receiving health benefits or other job benefits).  The practical effect of the Shea-Choi repeal proposal would be to allow the hourly wage paid to hundreds of low-income workers to fall to the state minimum wage of just $9 per hour.

Yes, let's cut wages in one of the most expensive areas to live in the country. Cost of living is going up, and wages are going down. No way that could possibly backfire and lead to people losing their houses and requiring government assistance.


 
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This is the way the world ends. Not with a bang but a whimper.
Cost of living is going up
Because of the shortage of housing.

Quote
and wages are going down.
Slashing the minimum wage doesn't mean wages will go down.


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Irvine resident Gail Lewis, usually testifying as an animal welfare advocate, this time called on Councilmembers who “profess to be Christians” to ask themselves whether hurting the working poor is what Jesus would countenance.
#rekt


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Fucking america.
Raise the wage because it cant support living: prices go up so the new wage is just a bad as the old one

lower the wage: people cant eat or live anyway


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Cost of living is going up
Because of the shortage of housing.

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and wages are going down.
Slashing the minimum wage doesn't mean wages will go down.
there's no shortage of housing here. there's fucktons of new houses and apartment buildings, both finished and being built, all over the city.

cutting the minimum wage from $11 to $9 means exactly fucking that - wages for those positions will go down. you think a company would willingly pay $11 when they only have to pay $9?


 
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This is the way the world ends. Not with a bang but a whimper.
lower the wage: people cant eat or live anyway
Are you forgetting the EITC, y'know, exists?


 
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This is the way the world ends. Not with a bang but a whimper.
there's no shortage of housing here. there's fucktons of new houses and apartment buildings, both finished and being built, all over the city.
Can't find any data on this at the moment, so I can't comment.

Quote
you think a company would willingly pay $11 when they only have to pay $9?
Depends on the kind of company, level of turnover, et cetera. But it wouldn't surprise me, given the downward-stickiness of nominal wages.


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there's no shortage of housing here. there's fucktons of new houses and apartment buildings, both finished and being built, all over the city.
Can't find any data on this at the moment, so I can't comment.
it's not exactly scientific research, but this is the listings on zillow of all homes and apartments newer than 2010 currently on the market or recently sold. almost 750 new homes and apartments in the last 5 years.

http://www.zillow.com/homes/for_sale/Irvine-CA/fsba,new_lt/52650_rid/2010-_built/days_sort/33.841905,-117.439384,33.531665,-118.10955_rect/10_zm/1_rs/1_fr/


we've been growing pretty quickly for years now


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Last Edit: June 03, 2015, 03:57:31 PM by Madman Mordo


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?
Because, as I said, businesses need to compensate for the increase in expenses when minimum wage is increased, whether that be cutting down jobs (increasing unemployment), or raising the price of goods and services (increasing the cost of living).

Raising the minimum wage is literally the worst solution I can think of when the cost of property is at an all time high.


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?
Because, as I said, businesses need to compensate for the increase in expenses when minimum wage is increased, whether that be cutting down jobs (increasing unemployment), or raising the price of goods and services (increasing the cost of living).

Raising the minimum wage is literally the worst solution I can think of when the cost of property is at an all time high.
but keeping minimum wage at $X wont keep costs from rising, businesses will do that anyway. How are these people supposed to participate in the marketplace when they can't put a roof over their head? The economy thrives when more people participate in it.
Last Edit: June 03, 2015, 05:53:21 PM by Mad Max


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?
Because, as I said, businesses need to compensate for the increase in expenses when minimum wage is increased, whether that be cutting down jobs (increasing unemployment), or raising the price of goods and services (increasing the cost of living).

Raising the minimum wage is literally the worst solution I can think of when the cost of property is at an all time high.
but keeping minimum wage at $X wont keep costs from rising, businesses will do that anyway. How are these people supposed to participate in the marketplace when they can't put a roof over their head? The economy thrives when more people participate in it.
That's the thing, I don't want to maintain wages at anything. Let the market fix the wages itself. Businesses will only reduce costs when necessary, such as an artificially altered wage.

The Scandinavian countries are a prime example of this. Literally none have a fixed minimum wage and their cost of living is exemplary.


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?
Because, as I said, businesses need to compensate for the increase in expenses when minimum wage is increased, whether that be cutting down jobs (increasing unemployment), or raising the price of goods and services (increasing the cost of living).

Raising the minimum wage is literally the worst solution I can think of when the cost of property is at an all time high.
but keeping minimum wage at $X wont keep costs from rising, businesses will do that anyway. How are these people supposed to participate in the marketplace when they can't put a roof over their head? The economy thrives when more people participate in it.
That's the thing, I don't want to maintain wages at anything. Let the market fix the wages itself. Businesses will only reduce costs when necessary, such as an artificially altered wage.

The Scandinavian countries are a prime example of this. Literally none have a fixed minimum wage and their cost of living is exemplary.
How would the market fix itself? Why would a company ever charge less for a good or service than they do now, when they could charge the same [or more] as wages go down in order to increase profit?


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The astronomical cost of living is precisely because of the minimum wage.

BUT MUH GOODS AND SERVICES ARE 2 HIGH

Yeah no shit. You mandate companies to pay a required amount and they have to compensate all of the excess expense. Here's a novel concept. How about you let the market fix the wage rates so people aren't out of employment and paying $10 for a loaf of bread?
Yeah, but not cost of living like this. The median income is just shy of $100,000 here. A 3-bedroom single family home is a million dollars. Even if minimum wage was $20, that wouldn't pay enough to live here. A minimum wage for $11 isn't what's hurting us.
There's probably nuance as to why that is. I doubt the market magically came to the conclusion of a million dollars for a family home.

Is government heavily involved in the housing scheme where you're from? Because I wouldn't be surprised if it was.
No, it wasn't magically overnight. Over the last 20 years home prices have skyrocketed because of the location and schools here. My parents bought their 4-bed, 4-bath, 3 car garage, and a tiny-ass <100sqft yard for $250,000 in 1994. Last year it was appraised for $1.4m and it isn't even that nice of a house, comparatively.

It's a great investment for them, but you're fucked if you try to move here now.

I coudln't comment on govt involvement,
Shortages of housing seems more likely, then.

Regardless, I don't think artificially raising the minimum wage is the most viable answer. All it really does is just pour salt on the wound at this point.
But why not raise the minimum wage? Cost of living is going up. Even if they stay at the same wage, it's worth less. Regular jobs get a cost of living increase of a couple % every year, why shouldn't minimum wage?
Because, as I said, businesses need to compensate for the increase in expenses when minimum wage is increased, whether that be cutting down jobs (increasing unemployment), or raising the price of goods and services (increasing the cost of living).

Raising the minimum wage is literally the worst solution I can think of when the cost of property is at an all time high.
but keeping minimum wage at $X wont keep costs from rising, businesses will do that anyway. How are these people supposed to participate in the marketplace when they can't put a roof over their head? The economy thrives when more people participate in it.
That's the thing, I don't want to maintain wages at anything. Let the market fix the wages itself. Businesses will only reduce costs when necessary, such as an artificially altered wage.

The Scandinavian countries are a prime example of this. Literally none have a fixed minimum wage and their cost of living is exemplary.
How would the market fix itself? Why would a company ever charge less for a good or service than they do now, when they could charge the same [or more] as wages go down in order to increase profit?
Consumer sovereignty.

When the minimum wage is eliminated, businesses have more leeway to charge prices that satisfy more consumers. When you arbitrarily set wages and demand businesses to pay those wages, they lose the autonomy to run the business however they like and satisfy consumers. This causes them to set prices to make ends meet. Without a minimum wage, the labour and goods/services market will equilibrate at a natural rate.

Of course, privatisation of the labour market is useless without competition. That's why I advocate little to no government involvement that have a tendency to entrench monopolies.