A poor minimum drags on the median wage rate.

Supposn · Feb 9, 2020

A poor minimum drags on the median wage rate.

the overwhelming majority of both USA's low and middle-income persons are employees, retirees, or those receiving benefits as surviving family members of such persons, or dependents of all these afore mentioned persons.

Due to employers’ wage differential practices, the minimum wage rate’s effects upon USA’s lowest earning 40 percentile of employees’ wage rates, range from a critical to a substantial portion of their jobs’ wage rates.

Minimum wage’s insufficient purchasing power is detrimental to the purchasing power of the median rate. Our middle-income bracket’s economy cannot be robust, if our minimum wage rate’s purchasing power’s poor. Respectfully, Supposn

Supposn said:
H.R. 582, “Raise the wage act” is a good bill, but opponents of the bill will refrain from mentioning the minimum hourly rate will not attain $15 until 7th year after the bill's passage. Its method for retaining the minimum rate's purchasing power is to monitor and annually (when necessary), adjusted to be changed in the same proportion as the the proportional change of USA's average wage rate.

In the likely case that it's not passed through and added to our federal statutes, I urge U.S. Congressional members to continue striving and pass a bill that would increase the minimum wage rate by 12.5% of its purchasing power until it attains 125% of its February-1968 purchasing power. Thereafter the rate should be monitored and annually adjusted to retain that purchasing power or to retain its proportional relationship to USA's average wage rate. …

Southern Dad · Feb 11, 2020

If raising minimum wage is the answer to poverty, why is it that California, which has a higher state minimum wage, spends more per capita on welfare, and still has a homeless problem that is growing?

Supposn · Feb 11, 2020

Southern Dad said:
If raising minimum wage is the answer to poverty, why is it that California, which has a higher state minimum wage, spends more per capita on welfare, and still has a homeless problem that is growing?

Southern Dad, we agree states economies differ. Differences between their effective their minimum wage rates affect each other’s economies. Those effects are particularly apparent where those differences are near each other government’s jurisdictions.

Paradoxically, the poorer economies, (which are of those states more opposed to the federal minimum laws, derive more than other states net benefits due to those law.

To the extent of its purchasing power, a minimum wage rate reduces the extent of poverty among the working poor. Reducing California’s or the federal minimum rate would be net detrimental to California’s economy. Respectfully, Supposn

Kode · Feb 11, 2020

Southern Dad said:
If raising minimum wage is the answer to poverty, why is it that California, which has a higher state minimum wage, spends more per capita on welfare, and still has a homeless problem that is growing?

And you think it should all be solved by raising the minimum wage IF raising it is a legitimate thing to do. Solving those problems would prove it, eh? It's really that simple?

Kode · Feb 11, 2020

Supposn said:
Southern Dad, we agree states economies differ. Differences between their effective their minimum wage rates affect each other’s economies. Those effects are particularly apparent where those differences are near each other government’s jurisdictions.

Paradoxically, the poorer economies, (which are of those states more opposed to the federal minimum laws, derive more than other states net benefits due to those law.

To the extent of its purchasing power, a minimum wage rate reduces the extent of poverty among the working poor. Reducing California’s or the federal minimum rate would be net detrimental to California’s economy. Respectfully, Supposn

We can also choose to see the logic in keeping a minimum wage in step with inflation..... REAL inflation. The CPI doesn't actually measure inflation.

Supposn · Feb 11, 2020

Kode said:
We can also choose to see the logic in keeping a minimum wage in step with inflation..... REAL inflation. The CPI doesn't actually measure inflation.

Southern Dad and Kode, you guys aren’t aware of any single remedy that would entirely “solve” all of USA’s problems due to poverty in our nation?
To the extent of its purchasing power, the federal minimum wage rate reduces poverty among USA’s lower wage rate employees and their dependents. This in turn net reduces poverty in the USA and is net beneficial to our economy. These all are justifications for a minimum wage rate.

There have been proposals to increase the federal minimum wage rate to some higher value, and thereafter retain that value.

All such credible proposals I’ve encountered, would monitor and (if adjustment is required), that adjustment would be performed on an annual basis and the adjustments would correspond to the annual changes of the statistic the rate would be “pegged” to. Among those suggested statistics have been, a federal consumer price index, or the USA’s average wage rate, or the U.S. average income.

I’m not opposed to these proposals. Respectfully, Supposn

Southern Dad · Feb 12, 2020

Kode said:
And you think it should all be solved by raising the minimum wage IF raising it is a legitimate thing to do. Solving those problems would prove it, eh? It's really that simple?

No, I do not believe the federal minimum wage needs to go up. If the states want to raise their minimum wage so be it. But in truth, most employers pay in excess of federal minimum wage, any way. We are talking about under 3% of the wage earners.

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Kode · Feb 12, 2020

Southern Dad said:
No, I do not believe the federal minimum wage needs to go up. If the states want to raise their minimum wage so be it. But in truth, most employers pay in excess of federal minimum wage, any way. We are talking about under 3% of the wage earners.

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You're either all for corporate profits and screw the worker, or you're not thinking clearly. The minimum wage has not kept up with inflation since about 1968. If it had kept up, it would be a bit over $12 now.

Supposn · Feb 12, 2020

Southern Dad said:
… But in truth, most employers pay in excess of federal minimum wage, any way. We are talking about under 3% of the wage earners. …

Southern Dad, We are talking about under 40% of USA's wage earners.

Transcript of the thread, "Minimum wage rate and wage differentials":

Supposn said:
… Participants in discussions may thoughtlessly limit their remarks to only to only those employees earning precisely the federal minimum wage rate of $7.25 per hour, rather than to some lowest bracket or percentile of wage rates. Due to employers’ common wage differential practices, the minimum rate affects the wage rates of the lowest earning 40 percent of U.S. employees, to extents ranging from critical to substantial.

Wage differentials are driven from the lower rather than higher wage rates.

Employers increasing a crew’s wage rates, are generally impelled to also increase their supervisor’s rate. Increasing their supervisors’ wage rates does not necessarily impel them to increase rates for the entire crews. …

Respectfully, Supposn

Southern Dad · Feb 18, 2020

Kode said:
You're either all for corporate profits and screw the worker, or you're not thinking clearly. The minimum wage has not kept up with inflation since about 1968. If it had kept up, it would be a bit over $12 now.

Corporate profits aren’t going to change. If wages increase, corporations will simply reduce the amount of labor. They’ll outsource, offshore, or automate. If they can’t do that, then they’ll pass the increase on to the customers.

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Southern Dad · Feb 18, 2020

Supposn said:
Southern Dad, We are talking about under 40% of USA's wage earners.

Transcript of the thread, "Minimum wage rate and wage differentials": Respectfully, Supposn

Hence the problem with minimum wage increases. Those wage differentials get expensive quick. Like ordering your food from a kiosk?

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Kode · Feb 18, 2020

Southern Dad said:
Corporate profits aren’t going to change. If wages increase, corporations will simply reduce the amount of labor. They’ll outsource, offshore, or automate. If they can’t do that, then they’ll pass the increase on to the customers.

Prove it. Historically they just pay the higher wage without layoffs.

Supposn · Feb 19, 2020

Southern Dad said:
Hence the problem with minimum wage increases. Those wage differentials get expensive quick. Like ordering your food from a kiosk? …

Southern Dad, for the 40% of USA employees earning the lowest wage rates, extents of the minimum wage rates’ proportional effects upon their jobs’ rates, range from critical to substantial.

Although the minimum affects other job rates, it doesn’t determine wage rate differentials. Eliminating governments’ minimum wage rates would not eliminate or proportionally reduce wage rate differentials.

Respectfully, Supposn

Supposn · Feb 27, 2020

Supposn said:
Southern Dad, for the 40% of USA employees earning the lowest wage rates, extents of the minimum wage rates’ proportional effects upon their jobs’ rates, range from critical to substantial.

Although the minimum affects other job rates, it doesn’t determine wage rate differentials. Eliminating governments’ minimum wage rates would not eliminate or proportionally reduce wage rate differentials.

Respectfully, Supposn

Correction: Minimum wage rate affects upon the wage rates of 60% rather than the remaining 40% of USA employees, range from critical to substantial. USA employees earning lower rates, far outnumber those earning middle or higher rates. Respectfully, Supposn

Supposn · Feb 27, 2020

Southern Dad said:
If raising minimum wage is the answer to poverty, why is it that California, which has a higher state minimum wage, spends more per capita on welfare, and still has a homeless problem that is growing?

Supposn said:
Southern Dad, we agree states economies differ. Differences between their effective their minimum wage rates affect each other’s economies. Those effects are particularly apparent where those differences are near each other government’s jurisdictions.
Paradoxically, the poorer economies, (which are of those states more opposed to the federal minimum laws, derive more than other states net benefits due to those law.
To the extent of its purchasing power, a minimum wage rate reduces the extent of poverty among the working poor. Reducing California’s or the federal minimum rate would be net detrimental to California’s economy. …

Southern Dad, To the extent of its purchasing power, the federal minimum wage rate only reduces the extent of poverty among the working poor and their dependents.
It doesn't address other causes of poverty in the USA, or entirely eliminate poverty among the working poor and their dependents. But it is of net economic and social benefit to all the states in our union and our federal courts uphold its legality. Why would you wish it to eliminate it?

Respectfully, Supposn

Southern Dad · Mar 7, 2020

Supposn said:
Southern Dad, To the extent of its purchasing power, the federal minimum wage rate only reduces the extent of poverty among the working poor and their dependents.
It doesn't address other causes of poverty in the USA, or entirely eliminate poverty among the working poor and their dependents. But it is of net economic and social benefit to all the states in our union and our federal courts uphold its legality. Why would you wish it to eliminate it?

Respectfully, Supposn

What raising minimum wage does is put more people out of work. As labor costs increase, it makes the ROI on technology/automation look better. It causes employers to outsource or offshore. As I said, look at the states with the highest state minimum wages, then explain why they are not just bastions of successful people living high on the hog. California has a higher minimum wage, San Francisco really has high wages. So many homeless in the streets. Something doesn't add up.

Supposn · Mar 8, 2020

Southern Dad said:
What raising minimum wage does is put more people out of work. ... As labor costs increase, it makes the ROI on technology/automation look better. It causes employers to outsource or offshore. …

Southern Dad, reduction or elimination of the minimum wage rate’s purchasing power’s net detrimental to our economic and social wellbeing.

To the extent of its purchasing power, the minimum wage rate reduces incidences and extents of poverty among the working-poor and their dependents. But the minimum rate does discourage creation of jobs that do not at least justify the minimum rate.

Reduced purchasing power, (i.e. the “real value”) of the minimum wage enables commercial performance of tasks that previously did not justify minimum rate wage’s cost.
Although reducing the minimum’s purchasing power may promote creation of more jobs of lesser purchasing powers, pools of employees and unemployed workers will also be increased. Paradoxically, percentages of those unemployed are not reduced; but percentages and numbers of unemployed seekers of lower wage rate jobs may be particularly increased.
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Both automation and the federal minimum wage rate are, and I consider will always continue to be to our nation’s net economic benefit.
USA’s higher median wage rates are contributing factors to our chronic annual trade deficits. They’re net detrimental to our GDP and particularly to our numbers of jobs and their wages’ purchasing powers. Although minimum wage rates bolster median rates, permitting USA’s reductions of minimum wage rates’ purchasing powers are net detrimental to our nation's economic and our social well being. [I am among the proponents of the improved trade policy described within Wikipedia’s “Import Certificates” article.]
Respectfully, Supposn

A poor minimum drags on the median wage rate.

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