[QUOTE=Antdawg;44638504]To be fair, not even economists know economics. Un-like other sciences, experiments cannot be so easily isolated. It is not as easy to assume ceteris paribus, so there is more subjectivity. Which makes sense, most (if not all) reasonable scientists believe in the Big Bang theory, but you won't find such a consensus between economists on may things. There is still a massive divide between economists of the Keynesian school (and related schools), and economists of the Monetarist schools.[/QUOTE]
Considering all the data we have is based on previous experience that may or may not even be relevant anymore, and the fact that the past has shown time and time again that the economy completely subverts the predictions of the economists.
This wouldn't be so bad were it not for the fatalistic approach most economists adopt where [I]they must be right[/I] because they spent 4 years of college to learn this shit. My own econ teacher thinks this way, and it is frustrating to no end because, as a historian, I know of many times where the self-assured economists' predictions fell completely flat.
The point is that there is no honest telling as to what a minimum wage increase will do in broad terms. There are massive political, social, and cultural influences on that outcome not just between countries but between towns and counties. For some areas it could be good, for some bad. I think it is best to simply let the states test the waters and find out what minimum wage works best for them, much like what Connecticut is doing.
We can learn from examples, but even that doesn't give us a direct answer. There is no telling how this will effect the cost of living for certain (well, it most likely WILL go up, but the question remains as to whether or not it proves to be more sustainable), we can only guess based on past examples.
When it gets incresed. Then more people want to go to Switzerland.
[QUOTE=avincent;44638793]Because raising minimum wage doesn't increase the cost of living... You can't just raise the minimum wage so people can afford more stuff. As you artificially push the lowest payed citizens higher the general cost of living goes up... Look at San Francisco.. Minimum wage is like $15.00 and you still couldn't live there...
[editline]25th April 2014[/editline]
Seriously.. It's like "Oh durr! Just give minimum wagers more money! That'll solve all the issues!"[/QUOTE]
So what's the alternative? Is there even an alternative? Or are you going to say that we [I]need[/I] a poor class with their heads barely above the water so the rest of the economy can rest on them?
[QUOTE=avincent;44638793]Because raising minimum wage doesn't increase the cost of living... You can't just raise the minimum wage so people can afford more stuff. As you artificially push the lowest payed citizens higher the general cost of living goes up... Look at San Francisco.. Minimum wage is like $15.00 and you still couldn't live there...[/QUOTE]
I know everyone loves their San Francisco stereotypes, but the current minimum wage there is actually $10.74, not $15. There is a proposal at the moment to raise it to $15 by 2016, in which companies with fewer than 100 employees would get an extra year to make the adjustment.
[QUOTE=Hamsteronfire;44633977]explain why?
inflation?[/QUOTE]
Probably because of this [MEDIA]http://www.youtube.com/watch?v=Ct1Moeaa-W8[/MEDIA]
I'd still rather earn more money and live in a more expensive country(but expenses are generally higher only in property/rent, food in a place like switzerland and norway, But you'd buy a car or a phone etc with the same price because of the free market and globalisation. You could also afford a longer and better quality vacation for instance.The pros outweigh the cons.
[QUOTE=rctplayer8;44647451]When it gets incresed. Then more people want to go to Switzerland.[/QUOTE]
We just had a vote to limit immigration, so that it will be even harder to move to Switzerland. So that will probably not be a huge factor.
[QUOTE=JohnnyMo1;44642548]The reasons you'll generally be given in a basic econ class are that pricing labor away from the market value creates deadweight loss (in which a chunk of economic efficiency basically disappears from the economy) and some jobs which employers are not willing to pay the minimum wage for will just be removed, increasing unemployment.[/QUOTE]
the many credible economic studies on the subject have determined that the minimum wage causes an increase in unemployment, yes. the important distinction to make is that, in many of these studies, the job loss is in negligible amounts.
meanwhile, a minimum wage can be good when applied intelligently in the sense that a greater amount of disposable income leads to increased consumption and thus the greater success of businesses.
this is the kind of issue that i try to remain on the fence about, however. i'm not an economist, just a highschooler.
Anybody who says minimum wage in the US is fine has never worked minimum wage, or works a minimum wage job while having no financial responsibility. 7 or 8 goddamn dollars is laughably bad.
[QUOTE=milkandcooki;44652754]Anybody who says minimum wage in the US is fine has never worked minimum wage, or works a minimum wage job while having no financial responsibility. 7 or 8 goddamn dollars is laughably bad.[/QUOTE]
Worked min wage for nearly 6 years to live on my own and work through college. You can do it.
The minimum wage here is like $3, then again, everything is much cheaper.
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