Consequences of eliminating the federal minimum wage.

[Supposn]

http://www.cato.org/publications/pol...imum-wage-laws

On 8:12 AM, June 4, 2013, Robo posted a response to my June 3, 12:45 PM post.
Robo’s response was a link too CATO’s policy analysis paper #701, (The negative effects of minimum wage laws, written by mark Wilson. and dated June 21, 2012). The link is:http://www.cato.org/publications/pol...imum-wage-laws .
This is a posted response to one of the negative effects that Mark Wilson attributes to the federal minimum wage laws.

Within that analysis paper Mr. Wilson wrote: “Minimum wages particularly stifle job opportunities for low-skill workers, youth, and minorities, which are the groups that policymakers are often trying to help with these policies”.

Robo, [refer to “Fact Sheet #32: Youth Minimum Wage - Fair Labor Standards Act”,
http://www.dol.gov/whd/regs/compliance/whdfs32.pdf ].
The 1996 Amendments to the FLSA allow employers to pay a youth minimum wage of not less than $4.25 an hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment.

This provision of law grants preference for youth and thus indirectly is of some disadvantage to all other job seekers.
The law’s explicitly drafted to prohibit displacement of any or all others to enable hiring youths at cheaper wage rates; but I think that will be difficult to shield persons already employed at higher than sub-minimum wage rates.

I don’t believe that the application of the $4.25 rate is applicable to all affiliated employers of the same worker. If that’s the case, I foresee possibilities for the same youth working directly for a series of affiliated employers or enterprises can legally be paid sub -minimum wage rates for durations exceeding 90 days.

Eliminating the federal minimum wage rate to reduce youths' high rate of unemployment would reduce the purchasing power of all wages and salary earners and increase poverty among wage earning families currently and for the remainder of their lives.
Thus far I suspect that this change of regulations will to some extent reduce median wage rates for all, more significantly reduce median wage rates for youths and I doubt if has or will (more than otherwise) significantly decrease unemployment rates of youths.

Respectfully, Supposn

[canceled.2021.1]

I love America, I do not know why or at what legally mandated minimum rate of labor compensation applicable without regard for quality of the labor or the task to be performed would be so excessive as to be net detrimental to the nation’s economy.
I do not doubt that at some point an additional increase of the federal minimum wage would be of little or no net benefit to our economy and any increase beyond that point may be net detrimental to our nation; but I do not know why that is so or how that point could be predicted.

All increases of the FMW rate have been (more than otherwise) of net economic benefit to our nation; (otherwise being if the rate had not been increased). The purchasing power, (i.e. the “real” value) of the FMW rate peaked in 1968 and it’s not unreasonable to believe that further increases would have a continued to increase the minimum rate’s beneficial effects upon our economy.

The consequences due of our permitting the minimum rate’s purchasing power to decrease have been few durations of little growth and sometimes decreases of our median wage rate’s purchasing power.

We should eventually increase the FMW rate to some point beyond its 1968 purchasing power and after it has reached that point we should continue to annually peg the FMW rate to the purchasing power of the U.S. dollar.

Respectfully, Supposn

How about $35,000 a year?

[Asoka]

Get rid of the minimum wage and watch effective demand tank.

[Asoka]

And that's from a strictly economic perspective, it would likely also cause a humanitarian crisis.

[canceled.2021.1]

And that's from a strictly economic perspective, it would likely also cause a humanitarian crisis.

So how high should it be? Let's make it $50 K a year. Quit fucking around with it. Raise the butch once and for all

Or why can't the gubmint just print two million a piece for everyone? Wouldn't that eliminate poverty?

[Supposn]

How about [a federal minimum wage rate of] $35,000 a year?

I love America, it’s reasonable to assume that any sudden change of the federal minimum wage, (FMW) rate would be of some detriment to our economy. Sudden radical changes are generally more upsetting to markets and economies; modifications the FMW rate has always been and should always be enacted gradually.

If we were to attempt to attain an excessive minimum rate in gradual incremental stages, I would suppose that we’d encounter a point where the increased rate did little or nothing to improve our economy; thereafter the reasonable and logical policy would be to retain the minimum’s purchasing power. This could be accomplished by monitoring and annually adjusting the minimum rate (when necessary) to keep it in tandem with the cost-price index number.

How about that?

Respectfully, Supposn

[Asoka]

15/hr is a reasonable minimum wage, I think. It obviously needs to be continually raised or its real value will quickly be eroded by inflation.

So how high should it be? Let's make it $50 K a year. Quit fucking around with it. Raise the butch once and for all

Or why can't the gubmint just print two million a piece for everyone? Wouldn't that eliminate poverty?

This is a silly strawman. The minimum wage does not improve things by increasing the nominal value of wages...rather it puts more disposable income in the hands of people who generally have a high marginal propensity to consume, which increases demand, thereby increasing investment and production.

This is fairly simple macroeconomics. Obviously wealth is generated by real output not money. But money is the tool society has chosen to actuate control over resources, so the way money is distributed certainly has an effect on real output.

[evince]

but that makes it hard for the wealthy right wing masters to level the American worker with the third world worker.



the sociopathic party doesn't care about actual human lives

[Robo]

Consequences of eliminating the federal minimum wage.

Elimination of the Federal Minimum Wage, (i.e. FMW) rate would be the ultimate reduction of that rate. In that case states with their own minimum wage laws would be denied a significant economic shield.
If the FMW were eliminated, the purchasing powers of all states legally enforced or market determined minimum wage rates would soon be reduced.
Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and most other wages and salaries.


Based only upon our current FMW rate of $7.25/Hr., my guesstimate is the local labor markets’ will drive their state governments’ or their markets’ determined variable legally unenforceable minimum wage rates down to a range (expressed in U.S. dollars of current purchasing power) from less than $2 and will rarely exceed $5.

There are many job tasks that (in the employers’ opinions) do not justify the minimum rate but they now exist because their performance is necessary and/or is net profitable for the employers’ enterprises. These jobs will continue to exist but their wages purchasing powers will be substantially reduced.

Although we’ve induced the creation of more jobs (with wages of much lesser purchasing powers), the less demanding tasks of these additional jobs and their wages lesser purchasing powers would increase our labor pool for such jobs. The increased labor pool will exceed the increased numbers of jobs. Our unemployment rate would (on paper) indicate increased rates of unemployment. In actuality, the nation’s unemployment rates will not decrease.

Eliminating the FMW would reduce the proportion of our employees’ population’s middle income earners and increase the proportion of our employees’ lower income earners.
Currently a good portion, if not the majority of USA’s working poor are recipients of little or no public assistance. The reduction of employee earnings’ purchasing powers would increase public assistance rolls. Due to the reduction of wages and salaries purchasing powers, there’ll be more working poor and they will all require more public assistance.

Eliminating the FMW laws would be net economically detrimental to our nation.

I’m a proponent of annually pegging the federal minimum wage to the purchasing power of the U.S. dollar. Social Security retirement benefits have for many years been annually adjusted to a federal cost price index; it been working exactly as it was intended to.

Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and mopst other wages and salaries.


Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and most other wages and salaries.




Respectfully, Supposn

There's no constitutional authority for a federal minimum wage. If you think there is, guide me to it in the text of the Constitution.

[evince]

the scotus says your full of shit

[Robo]

the scotus says your full of shit

Who did the scotus say was "full of shit?" When did they say it? Can you produce a video of them saying it? Can you produce a court ruling of them saying it? "ill wait for you to produce your evidence.

[evince]

minimum wage is perfectly legal you lying sack of shit

[Robo]

minimum wage is perfectly legal you lying sack of shit

Who are you talking to

[USFREEDOM911]

but that makes it hard for the wealthy right wing masters to level the American worker with the third world worker.



the sociopathic party doesn't care about actual human lives

But didn't wealthy Hillary "outsource" one of the jobs she didn't want to do, to an intern?

[evince]

it was not a job


what Vitter got while wearing diaper was a job


money changed hands


his dick is deadly


his prostitute turned up DEAD