http://www.bloombergview.com/articles/2014-10-03/l-a-s-minimum-wage-experiment?hootPostID=59d16236154b7c3b1bd4a3544c07013f

TEH SKY IS FALLING AGAIN

Can't stop progress.

Is artificially raising the minimum wage going to help?

Is it really though?

Minimum wage needs to be tied to inflation or cost of living. We cannot have this debate again and again.

Quote from: Risay117 on October 06, 2014, 03:34:12 PM

Minimum wage needs to be tied to inflation or cost of living. We cannot have this debate again and again.

Or we could just abolish it and choose something which actually alleviates poverty?

With Bureaucracy, the flexibility a government needs to adapt to the changing landscape plus how hard it is for people to reeducate themselves, you will be left with a bunch of people with skills not required and too few people with the required skills. Honestly Universal Basic Income would be my choice or something similar but that will require a huge change in thought process. So min wage related to inflation may be a temporary band aid till we get to Universal Basic Income.

Fucking lol

Now companies will just increase prices to compensate. The oroblem is fighting an inflated market. That difficult for people to understand? No womder why outsourcing is all too common also

Now companies will just increase prices to compensate.

That just isn't true.

Inflation is, always and everywhere, a monetary phenomenon.

Well it comes down to the inefficiency of governemnt.  Notably the ammount of money it prints. The concept of more=less value is what economics are. Why did Germany spiral out of control after WWI? Because it printed off money to pay it's debts, resulting in people needing a car full of money to buy a loaf of bread. A return to a economy backed by something of actual value is the best hope

Quote from: Mad Max on October 06, 2014, 04:02:07 PM

If raising the minimum wage isn't the answer, what is? It's not like we can just *poof* make money worth more, or make goods and services cost less.

That's exactly our point. You can't just artificially make something more valuable or reduce the cost of living by demanding companies shell out more money. It doesn't work like that. At least not beneficially in the long run.

Have you even factored in what this will do to small businesses? I imagine not. All you really have in mind is the poor destitute workers. 2sad6me. #cut4ourworkers

Well we can't just let them make less and less money each year...

Normally, people see ~3% increase in their wages annually to make up for inflation and cost of living. Why shouldn't minimum wage people get an increase?

Well we can't just let them make less and less money each year...

Normally, people see ~3% increase in their wages annually to make up for inflation and cost of living. Why shouldn't minimum wage people get an increase?

When we hit economic downturns, firms will overwhelmingly prefer to cut jobs as opposed to wages.

Raising the price floor, by this logic, will hit those at the bottom hardest. The only people who benefit are those who keep their job. Which is why social security is eminently better than minimum wage at poverty alleviation.

Putting a dirty bandage on a severed arm. It will eventually make things even worse because it's not addressing the actual problem.

Haha

Quote from: DAS B00T x2 on October 06, 2014, 04:17:43 PM

Quote from: Kinder_ on October 06, 2014, 04:10:22 PM

A return to a economy backed by something of actual value is the best hope

Going back to the gold standard? Do we even have 15.6 trillion dollars worth of gold to make sure that our economy doesn't suddenly and drastically deflate?

Maybe another asset, like bitcoin or something else.

Didn't a group of douchebags in china prove that you can crash the bitcoin market with nominal effort?

Quote from: Kinder_ on October 06, 2014, 04:10:22 PM

A return to a economy backed by something of actual value is the best hope

Going back to the gold standard? Do we even have 15.6 trillion dollars worth of gold to make sure that our economy doesn't suddenly and drastically deflate?

That's why it's a process. A long process for that manner. But the way our society is, we focus too much on ourselves and not the future generations

Meanwhile.. in the same location.. cost of all goods/living goes up $5 more dollars. I know.. Let's raise it some more!

Not true.