Monday, September 5, 2016

Minneapolis Minimum Wage Discussion

MP Mpls $15/Hr Pros / Cons
"Poverty, government subsidies and income disparity

This discussion ignores a number of critical issues. First, the shrinking of the middle class in terms of the race to the bottom with wages. If you look at the minimum wage of 30-40 years ago and applied the inflation rate, the minimum wage worker would be making closer to $15 per hour than the current minimum. Likewise wages of middle class workers as the investor manager class has shifted money into their pockets. 
Second, the level of poverty in our prosperous society is appalling and the children of low wage workers have little chance to get out of poverty as long as their parents don't earn enough to support a family. Single parent households - often a result of who adults who cannot have a decent lifestyle with both parents working. $3000 per year more income, chump change for most Americans, make poor families more whole. 
Third, in essence government by providing social benefits to low wage adults are providing business subsidies. When a highly profitable company like Walmart force the government to support its workers, that money goes right to the company bottom line. In other words, middle class people pay for social benefits, allowing executives and stock holders to pocket bigger checks. 
Finally, this dynamic fuels income disparity and creates problems through society. When people have education and good paying jobs, they are better family members, neighbors and citizens. Why should government tolerate greedy people expecting subsidies, when it creates social dysfunction. Trump supporters, you are not getting screwed by government, but by businessmen like Trump who care about nothing other than their personal bottom line. Only government action can set things right." Joel Stegner

"Same Old Story
1. A large majority of American Consumers want the best quality, features, performance, etc for the best price. Therefore many jobs went overseas and wages dropped. (ie the first Datsuns, Hondas, Nissans, etc)

2.Single parent households are poor because there is one adult and one or more kids. And unfortunately often the one Parent is low skilled or has low academic capability.

3. The subsidies go to those low skilled / low academically capable parents to reduce the natural consequences of their poor choices. They are better for our society than raising the minimum wage. Rationale: a higher minimum wage will increases prices for everyone, and put more pressure to off shore more jobs. Where as work credit, child credit, food stamps, etc are paid for by the wealthy and given to the poor.

4. Currently we encourage single parent households and all the societal problems they cause by paying them with medical care, food, cash, etc. This unfortunately promotes the behavior, children failing in school, generational poverty, etc. I understand your desire to double down on the "war on poverty, however I am not sure the poor or our country will be able to survive it." G2A
It will be interesting to see where the minimum wage discussion goes from here.  Thoughts? 

1 comment:

jerrye92002 said...

It may seem odd to start the discussion with the comment that usually stops it, but "why not $200/hr?" BTW, that is the last reduction ad absurdum figure I heard, it was usually $100/hr, but I suppose indexed for inflation...