On 12/5/2013 11:29 AM, Rudy Canoza wrote:
[excessive cross-posted NGs trimmed]
> On 12/5/2013 9:11 AM, M.I.Wakefield wrote:
>> groups snipped due to providers limitations on crossposting:
>> rec.crafts.metalworking,rec.bicycles.tech
>>
>>
>> "Rudy Canoza" wrote in message
>> news:d47cb$52a09b14$414e828e$10...@EVERESTKC.NET...
>>
>>> On 12/4/2013 7:18 PM, Dhu on Gate wrote:
>>> > On Wed, 04 Dec 2013 13:30:39 -0800, Rudy Canoza wrote:
>>> >
>>> >>
>>> >> Finally, the NJ min. wage increase was $.80 per hour, from $4.25 to
>>> >> $5.05,
>>> >> or just under 19%. The "wages strike" is calling for an increase in
>> So what's your solution, given that more than half of fast food workers
>> make so little that they qualify for federal aid (medicaid, food stamps,
>> welfare)?
>
> Bullshit.
Nope, it's a FACT:
"More than half of fast food workers have to rely on public assistance
programs since their wages aren't enough to support them, a new report
found.
According to a University of California Berkeley Labor Center and
University of Illinois study out Tuesday, 52% of families of fast food
workers receive assistance from a public program like Medicaid, food
stamps, the Earned Income Tax Credit and Temporary Assistance for Needy
Families. That's compared to 25% of families in the workforce as a whole.
The report estimated that this public aid carries a $7 billion price tag
for taxpayers each year.
The numbers are based on publicly available data on public assistance
programs from 2007-2011.
"Because pay is low and weekly work hours are limited, the families of
more than half of the workers in the fast-food industry are unable to
make ends meet," the report said."
http://money.cnn.com/2013/10/15/news/economy/fast-food-worker-public-assistance/
> No matter how you try to manipulate it, raising the minimum wage is
> going to throw some people out of work. Raising it to double its
> current level is going to throw a *LOT* of people out of work. Prior
> hikes in the minimum wage, on the order of 15%-20%, had measurable
> disemployment effects - some people saw their jobs disappear, others
> lost their jobs altogether. A hike of 107% would be that much worse.
"In a perfectly competitive market, anything that raises the wage above
a level at which the supply of workers equals the demand for them will
create unemployment. But a perfectly competitive labor market requires
that neither workers nor firms have bargaining power; that everyone has
all the necessary information; that workers are a commodity, rather than
different people with different skills and a need to be motivated; and
that there are no frictions preventing supply from matching demand.
Although everyone I know who teaches introductory economics presents
this model to students, few believe that it describes the real world. In
fact, in a survey of 40 leading economists through the Initiative on
Global Markets, a diverse group including both prominent liberals and
conservatives, only about a third agreed that raising the minimum wage
would make it harder for low-skilled workers to find employment. Because
only about one in 10 thought the costs of hiring probably would be
bigger than the benefits of higher wages for low-skilled workers, even
that number overstates how concerned these economists are about the
potential negative effects of raising the minimum wage.
So what’s the discrepancy between theory and what so many economists
think? When economists have analyzed the data, many have found few, if
any, negative effects of a minimum wage on employment. This has shifted
some of the thinking in the profession — and pointed to flaws in a
perfectly competitive model.
Paying workers more often leads them to feel better about their work and
reduces stress, both of which increase productivity. And when workers
produce more, employers’ labor costs fall. Companies such as Costco have
figured this out, and voluntarily pay higher wages. Other firms may not
care whether they pay less and get less from their workers, or pay more
and get more.
But workers aren’t indifferent to this choice. A family trying to
survive on the minimum wage can find itself living deep in poverty.
Raising the minimum wage would not only lift some families out of
poverty, but their additional earnings would contribute to the overall
economy by raising demand and job growth as they spend more in their
communities."
http://articles.washingtonpost.com/2013-04-05/opinions/38300337_1_minimum-wage-fair-labor-standards-act-workers
-----
"Increasing the minimum wage helps ensure employees are rewarded for
their hard work and boosts the incomes of low-wage workers—something
that is sorely needed to increase consumption and get the economy going.
It reduces turnover and helps employers compete on a more level playing
field, forcing firms away from a low-road, low-human capital investment
model to one where workers stay attached to the workforce and employers
make stronger investments in training. Taxpayers are better off because
they have to bear fewer of the negative externalities from low-road
employers—such as the costs of food stamps and Medicaid.
There is also a growing consensus among economists and academics that
raising the minimum wage does not kill jobs even during periods of
recession.
We reviewed academic research that examines the effects of minimum wage
increases during a recession or stretch of time with high unemployment
and found significant evidence that even during hard economic times,
raising the minimum wage is likely to have no adverse effect on employment.
Two key articles released in the past year provide definitive evidence
on the overall effects of the minimum wage on wages and employment.
Additionally, they provide compelling evidence about the impact of
raising the minimum wage during hard economic times.
The first study, published in November 2010 in the Review of Economics
and Statistics by Arindrajit Dube of the University of Massachusetts,
Amherst; T. William Lester of the University of North Carolina, Chapel
Hill; and Michael Reich of the University of California, Berkeley,
compared all of the adjacent counties that touch a state border where
there is a difference in the mandated minimum wage in each state.
Overall, the authors found that minimum wage increases raise wages for
low-wage workers but do not reduce employment. Critically, this paper
also demonstrated how previous research detected an erroneous
“disemployment” effect by failing to control for broad regional growth
trends.
Though the authors did not specifically focus on the minimum wage’s
impact during economic contractions, their period of analysis spanned
1990 to 2006, during which there were several recessions. In addition,
subsequent analysis by one of the co-authors finds that the overall
results hold when only recession periods are considered.
The second recent study, published in April in Industrial Relations by
Sylvia A. Allegretto of the University of California, Berkeley;
Arindrajit Dube; and Michael Reich, focused on state-level data. The
authors replicated the models of researchers whose studies of teen
employment found that increases in the minimum wage create job losses
and are often cited by minimum wage opponents. (Teen employment is often
viewed by minimum wage scholars as an indicator of the impact on the
lowest-skilled workers.)
Again, however, when the authors added appropriate variables to control
for regional differences—variables that previous researchers had
omitted—they found that minimum wage increases do not reduce teen
employment levels. Allegretto, Dube, and Reich specifically included an
analysis of the effect of the minimum wage during the recessions of
1990–1991, 2001, and 2007–2009 and again found no impact on hours worked
or employment levels.
Our review covered studies from as far back as the early 1990s and
included research based on state and local case studies as well as
nationally representative data. While some of these studies were not
focused on separating out whether the effect of a minimum wage increase
was different during a recession, their analysis covered minimum wage
increases during hard economic times.
University of California, Berkeley, economist David Card and Princeton
economist Alan Krueger’s seminal study of the effect of the New Jersey
1992 minimum wage increase comparing fast food industry employment in
New Jersey and Pennsylvania found no negative employment effect. In
fact, it found stronger employment growth in New Jersey. While there was
no national recession at the time, New Jersey’s unemployment rate was
8.7 percent in parts of 1992.
Similarly, Lawrence F. Katz, a Harvard economist, and Alan Krueger
studied fast food employment in Texas from 1990 to 1991 and found that
employment slightly increased when the minimum wage was raised. The
study included a 1990 minimum wage increase that occurred just before
the 1990–1991 recession and a second increase that occurred just after
the recession officially ended.
Moreover, David Card’s study of the impacts on teen employment of the
1990 federal minimum wage increase using state-level data found no
effect on teen employment. Most of the time period he studied included
the 1990–1991 recession.
A more recent study by Arindrajit Dube, T. William Lester, and Michael
Reich examines the impact of minimum wage changes on county-level
employment and labor turnover from 2001 through 2008. Specifically, the
authors’ analysis covered a period when there were two increases in the
federal minimum wage during a recession, one in 2007 and one in 2008.
This study’s finding of significantly reduced turnover among low-wage
sections of the labor market offers a clear explanation for why they
observed that employment does not fall in response to a minimum wage
hike. Further, because their data was at the county level, there were
numerous counties suffering high unemployment when minimum wage
increases went into effect.
In short, the academic research suggests that even during hard economic
times, raising the minimum wage doesn’t reduce employment.
http://www.americanprogressaction.org/issues/labor/news/2011/06/07/9747/an-increased-minimum-wage-is-good-policy-even-during-hard-times/
--
“The modern conservative is engaged in one of man's oldest exercises in
moral philosophy; that is, the search for a superior moral justification
for selfishness.” - John Kenneth Galbraith