09-21-2020, 05:26 PM
(09-21-2020 03:50 PM)RiceLad15 Wrote: [ -> ](09-21-2020 01:37 PM)Hambone10 Wrote: [ -> ]Those arguing that you should be able to 'earn a living' working a minimum wage job are quite literally asking for a participation trophy.
I’m someone arguing that, and I am arguing that someone who is willing and able to work 40 hours a week in a productive manner should be able to live in an equally productive manner - afford housing, save money to build wealth, not live paycheck to paycheck if they are responsible with their spending.
It isn’t a participation trophy, but rather appropriate compensation for their labor and time.
Do you believe that someone working 40 hours a week in a productive manner is undeserving of living like this?
What is a participation trophy, except the same idea of 'appropriate compensation' for their effort and time?
In such a short response, you have numerous words with nebulous definitions.... words like productive work and productive life, responsible with their spending and appropriate compensation.... now, adapt that to quite literally thousands of locations and value judgements... and those words have almost no generally accepted definition. That's not a knock, it's just a reality.
2.3% of American earn Minimum Wage... about the lowest that number has been since the BLS started reporting it. The highest number is 15.1% back in 1981. Hasn't been above 6% since 1998.
Compare that to 70% of Americans that have less than $1,000 in savings. And you want to set wages so high that the bottom 2.3% of earners can save enough to become investors while earning 0.3% in interest from the bank? What kind of incentive is THAT to save? People will spend it. They're already doing it earning vastly more than $15/hr. How 'productive' does someone have to be to save money?
How about instead we eliminate payroll taxes which primarily serve as 'forced savings' and fund it instead with a 20% VAT and a prefund up to say $50,000. If that min wage worker spends everything he earns, he's still ahead because of the payroll taxes. If he saves even a dollar, he earns a 20% rate of return on that saving, PLUS the 0.3% from the bank, lol. THAT'S investor returns and an incentive to keep the 40 inch LCD as opposed to buying the new 65' 4k OLED. Just a thought.
The problem with your theory is that you're pushing on a string. That's a really good metaphor for the situation. There is no way to engage in a thorough analysis of the various possibilities on this forum. For simplicity, I'll defer to the CBO here as they have a cute tool showing various possibilities. It's not accurate, but it's not horrible.
https://www.cbo.gov/publication/55681#:~...20workers.
How does increasing the minimum wage affect family income? By boosting the income of low-wage workers who keep their jobs, a higher minimum wage raises their families’ real income, lifting some of those families out of poverty. However, income falls for some families because other workers lose their jobs and business owners must absorb at least some of the higher costs of labor. For those reasons, the net effect of a minimum-wage increase is to reduce average family income.
As they also say, there are some jobs and some situations where that won't be the case... an example would be if an area like SF established a $15 wage, but people could move to Oakland and commute.
But I digress. My point is that because we can't define those terms, we can't define all sorts of things. My son earns double the min wage you suggest and lives in 300sf in NY without a car or car insurance. I know guys in Houston who earn 8/hr and live such that they can send hundreds, sometimes over $1,000 to their families every month. They're 'saving' on $8/hr and lots of people can't on 4 times that.
Minimum wage jobs are not designed for people to live alone much less become an investor and raise a family on. They are designed for people to develop skills and gain experience so that they can get a better paying job. When the percentage of people earning min wage is low, I believe that to be true. I can't tell you what percentage of the population has minimal skills, but I 3-4% wouldn't surprise me.... especially when you consider places like Buc-ees who start people out at $10-11/hr, but they require smiles and a great attitude... which are qualities some people have, but others can acquire as skills without having to learn them on the job.
Of course, there are people who for numerous reasons and in numerous situations (the major employer in a small town closes) where experienced people are forced into min wage jobs, but that is not who they are designed for... so we shouldn't build fiscal policy around exceptions. Let the government (both local AND Federal as appropriate) address the exceptions. If you build the policy for the exception, then you will find that lots of people will simply expand their baseline as their income grows. See the 70% with <$1,000 in savings but only 2.3% earning min wage.
Bottom line, a wage where you need zero experience or skills and yet you can not only live, but save money and become an investor without skills or experience is a participation trophy. Everyone wins! It's also IMO a pipe dream according to the data on saving.