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Big minimum wage hikes will hurt those that need the jobs the most , unskilled workers.
"Moreover, when businesses start firing employees, unskilled workers will be the first to go. A recent report by the Heritage Foundation encapsulates this idea. “Employers will not pay workers more than the value they produce,” it states. “Employers would respond [to a $15 minimum wage] by reducing employment of affected workers by approximately one-fifth, eliminating roughly seven million FTE jobs.” The experience of African American economist Thomas Lowell also validates the destructive impact that minimum wage hikes can have on unskilled or disadvantaged workers. In a 2015 article for Townhall, Sowell describes his experience of working as a black teenager. When he first started working, he says, the unemployment rate for black 17-year-old males was still in the single-digits, but liberals soon began pushing for increases in the minimum wage rate. The result? “Ten years later, the unemployment rate for black 17-year-old males was 27.5 percent -- and it has never been less than 20 percent in all the years since then.” Clearly, increases in the minimum wage can have negative effects on unskilled and disadvantaged workers. In the words of renowned economist Milton Friedman, minimum wage hikes “assure that people whose skills are not sufficient to justify that kind of a wage will be unemployed.”
Big minimum wage hikes will hurt those that need the jobs the most , unskilled workers.
"Moreover, when businesses start firing employees, unskilled workers will be the first to go. A recent report by the Heritage Foundation encapsulates this idea. “Employers will not pay workers more than the value they produce,” it states. “Employers would respond [to a $15 minimum wage] by reducing employment of affected workers by approximately one-fifth, eliminating roughly seven million FTE jobs.” The experience of African American economist Thomas Lowell also validates the destructive impact that minimum wage hikes can have on unskilled or disadvantaged workers. In a 2015 article for Townhall, Sowell describes his experience of working as a black teenager. When he first started working, he says, the unemployment rate for black 17-year-old males was still in the single-digits, but liberals soon began pushing for increases in the minimum wage rate. The result? “Ten years later, the unemployment rate for black 17-year-old males was 27.5 percent -- and it has never been less than 20 percent in all the years since then.” Clearly, increases in the minimum wage can have negative effects on unskilled and disadvantaged workers. In the words of renowned economist Milton Friedman, minimum wage hikes “assure that people whose skills are not sufficient to justify that kind of a wage will be unemployed.”
Did you read the bio of the author of that article? "Christopher Kuo is a high school student and this his first contribution to Enter Stage Right. (c) 2016"
"In a nutshell, we're going to see three major things,” said Steve Chucri, president and chief executive officer for the Arizona Restaurant Association. “First, we're going to see jobs eliminated, and with the job eliminations we'll see more technology-based applications, like kiosks. Third, we're going to see increased prices." Minimum wage hike will cost local consumers, workers | Local News Stories | gvnews.com
I can't imagine why the head of a restaurant organization which exists to lobby for low wages would ever criticize a wage increase
I have a son on the high-functioning end of the autism spectrum. He is at a college adapted to his needs. When he finishes these kinds of developments may doom any already limited employment prospects he has. I rue this day.
Perhaps now is the time to guide him towards a few industries that are likely to stay put, and for which there will be increasing labor demand. Specifically, I'm thinking about the aging Boomer generation. We will have surging demand for aids for all sorts of things to allow us boomers to age better in place. Everything from home health aids to home concierges to dog walkers to home-visiting physical therapists & occupational therapists too... well... you get the idea.
At the other end, there is increasing demand for estate planners, wealth managers, accountants, tax attorneys, tax preparers, etc. These things are not likely to be automated away, nor offshored to India.
Even demand for patent attorneys is booming and not subject to offshoring.
Depending on the nature of his autism, perhaps one of these areas might be a good place to think about.
they move operations overseas simply to increase profits. It's not like they can't afford to pay US wages ( which have been stagnant for decades) while executive and CEO compensation continues to soar.
Moving operations offshore can be driven by wage differential, but it is usually driven by tax differential. For example, when Intel looks at building a new semiconductor wafer fabrication factory ("Fab"), the site selection team looks at many factors including transportation infrastructure, access to lots of water (needed in the manufacturing process), access to lots of stable electricity, a stable political environment, an educated workforce, etc. A site that is acceptable on those dimensions can make the shortlist, and then it is all about tax incentives. Ireland offers a custom low income tax rate of 12% to Intel. China offers a 10-year tax holiday with zero taxes. India says it cannot do a complete tax holiday due to local laws, but it will match the benefit by providing all the water & electricity needed at the Fab for free. Israel counters it will not only provide a complete tax holiday, but will give $350 Million cash to Intel if Intel builds the fab in Israel (and, of course, the USA gives about $5 Billion in cash to Israel, so Israel is incentivizing Intel with US dollars), etc etc etc.
Why are countries willing to grant such tax subsidies? Unlike the USA, these countries correctly see a $5 Billion semiconductor fab as a springboard to economic development. Heck, Vietnam offered to move a river -- literally move a river -- to get attract a Fab. In contrast, the USA sees a Fab as a societal burden that must spend years wading through bureaucratic red tape at every level... and of course most importantly as a source of tax revenue and campaign contributions.
Last edited by SportyandMisty; 12-05-2016 at 09:58 AM..
while executive and CEO compensation continues to soar.
a lot of that isn't because they get "paid" more...
CEOs might get 100,000 shares as compensation. Because stocks have a trend of going up, even if they keep getting 100,000 shares, the monetary value will increase year after year. Even though they aren't "paid" more.
board directors/shareholders don't adjust the shares they compensate to a monetary value, they just keep giving the same number of shares regardless of price per share.
your argument of they could afford to pay everyone more would make more sense if you said they could afford to give everyone a stock share. But when you need money for food on the table, a piece of paper doesn't look as good.
At the other end, there is increasing demand for estate planners, wealth managers, accountants, tax attorneys, tax preparers, etc. These things are not likely to be automated away, nor offshored to India.
Even demand for patent attorneys is booming and not subject to offshoring.
Depending on the nature of his autism, perhaps one of these areas might be a good place to think about.
A lot of legal work is outsourced now to India, especially document review type work.
You will have to be more specific if you want to counter me. The cite, like your claim, just states ideas without being able to back them up with examples or economic science. If you wish to dispute my idea, please present more. Your cite also just concentrates on LA, are we talking city to city, state, or fed?
You will have to be more specific if you want to counter me. The cite, like your claim, just states ideas without being able to back them up with examples or economic science. If you wish to dispute my idea, please present more. Your cite also just concentrates on LA, are we talking city to city, state, or fed?
The source I provided you with is adequate for purposes of this discussion, and it was not just "ideas", but if you think it was then you really should read it again. But, if you have evidence that contradicts it, then the burden is on you to present it
I have a son on the high-functioning end of the autism spectrum. He is at a college adapted to his needs. When he finishes these kinds of developments may doom any already limited employment prospects he has. I rue this day.
He will be ok, I think his career choices should be based on whether he is a visual or non-visual thinker. I have a cousin who has autism and he's an auto mechanic, he has an amazing talent for 'seeing' how components relate to each other. My neighbor has a grandson who is autistic and he's a lab technician for an oil refinery, he does have very good fine motor skills which if not present might preclude one from that job. Is there a special needs career counselor at his college? That is who directed my friend's grandson into chemistry.
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