I'm looking for some perspective on this argument I've been hearing against raising the minimum wage. Some of my family think that raising the wage will devalue higher wage jobs. So because a grocery store clerk is suddenly valued at $15/hour, a tech job that pays $20 or $30 per hour will no longer mean as much.
...I know this is bs and it reminds me that equality feels like oppression for the privileged... but I have not found an effective way to counter it. People in my family don't like being laughed at or outright dismissed/ignored đ
I'm never going to convince these people of anything that doesn't fit in their bubble, but I'd like to have a clearer understanding of this.
Perhaps all those $20/hour jobs are undervalued and underpaid. Most people need raises in their pay.
@@@teaching profession
$15/hr comes to $31,200 a year. Thatâs more than I made in my first year in 2009 as a teacher with an advanced degree. The problem isnât the grocery store clerk making $31,200 a year. Itâs the teacher who is, too. Itâs one of the reasons I supported Harris originally - she wanted to close the teacher pay gap.
Yes, we already know that professions like teachers and nurses are vastly underpaid. The inequities that we are seeing and the shrinking middle class are not soley due to CEOs only paying their employees minimum wage, but rather from a systemic issue of underpaying many undervalued professions. No one with a masters in education should only be making $30,000 either.
Our university system is dealing with this. They raised the minimum salary to $31,xxx. So housekeepers and some facilities workers got this bump. But the admins and support staff that were at $31-32,000 didnât. Itâs salary compression and itâs hard to fix without bumping up everyone. There are also academic advisors with master degrees making $35k
It comes from the thought that the other field will never raise their wage. So the income gap is less. Of course, this is not going to be true in practice especially in college-educated fields because while there is stress in low-income jobs there is no "homework." So if you are getting paid the same, unless it is your passion, you might switch fields to have more free time.
There is a lot of fear-mongering when it comes to minimum wage talks. That there will be inflation, undervaluing of other services, etc. It is done on purpose because fear is a primal response and it is hard to get someone to listen to logic after they were scared.
I am a social worker...no person should be working 40+ hours a week and not making enough to put food on the table. The average working class person is earning far less than they would have during a prior generation based on inflation, rising health costs, housing, etc.
Paying a basic livable wage ensures fewer people need to take advantage of social safety net programs like SNAP and Medicaid which* news flash* are not free. The more people who need these programs the higher our taxes need to be to help cover them.
In the argument your relative is making...yes then for others who are slightly higher paid but still under paid their employers should also take note and adjust pay. Iâll give myself as an example, Iâve been in my field for close to 20 years, have a masterâs degree, state license to practice, and have to pay for annual CEUs, etc. I am in an area most social workers would consider more secure, but I donât even make 50k and an not in a low cost of living area.
Right now in many fields the pay is just completely out of whack with the current cost of living. Trickle down economics do not work. The people benefiting from keeping the minimum wage low are the CEOs and company owners who get rich while everyone else is breaking their back.
Post by susquehanna on Jan 23, 2021 9:18:58 GMT -5
I've worked fast food jobs and I've also worked jobs that required a college degree.
In my experience, generally I was treated shittier and I had shittier working conditions at those jobs where I earned minimum wage or close to minimum wage than I did at the jobs that required my college degree and paid more.
Post by chickadee77 on Jan 23, 2021 9:22:38 GMT -5
Here's my question - let me preface by saying I'm all for raising minimum wage. Also that I have no knowledge of economics other than what I've picked up in everyday life.
However, in light of the conversation above, if minimum wage is raised, and then, praise be, other wages are ALSO raised (again, I'm totally in favor), doesn't that then also drive up the cost of food/cost of living/etc.? So don't we just end up in the same place we are now, but with higher numbers across the board? I guess my thought is that while raising minimum wage would be amazing, I would rather (if it's an either/or, which I get that it isn't) work on building and solidifying safety nets for those that need them so that no matter what they're making, and no matter what the price of bread ends up being, everyone can put food on the table.
I'm honestly trying to learn, so please be gentle. I don't claim to understand this - also, I was raised VERY politically conservative (and also very poor, if that matters), so I hope I don't sound dismissive/elitist/whatever.
Here's my question - let me preface by saying I'm all for raising minimum wage. Also that I have no knowledge of economics other than what I've picked up in everyday life.
However, in light of the conversation above, if minimum wage is raised, and then, praise be, other wages are ALSO raised (again, I'm totally in favor), doesn't that then also drive up the cost of food/cost of living/etc.? So don't we just end up in the same place we are now, but with higher numbers across the board? I guess my thought is that while raising minimum wage would be amazing, I would rather (if it's an either/or, which I get that it isn't) work on building and solidifying safety nets for those that need them so that no matter what they're making, and no matter what the price of bread ends up being, everyone can put food on the table.
I'm honestly trying to learn, so please be gentle. I don't claim to understand this - also, I was raised VERY politically conservative (and also very poor, if that matters), so I hope I don't sound dismissive/elitist/whatever.
Iâll let someone who is better at explaining economics answer the first part, but in terms of the safety net which is my area of expertise, really no one who works full time should need government assistance to afford necessities. Not only is that pushing the responsibility of private employers to pay a livable wage onto the government (even worse when you consider how little most large corporations pay in taxes), itâs also politically non-viable.
Here's my question - let me preface by saying I'm all for raising minimum wage. Also that I have no knowledge of economics other than what I've picked up in everyday life.
However, in light of the conversation above, if minimum wage is raised, and then, praise be, other wages are ALSO raised (again, I'm totally in favor), doesn't that then also drive up the cost of food/cost of living/etc.? So don't we just end up in the same place we are now, but with higher numbers across the board? I guess my thought is that while raising minimum wage would be amazing, I would rather (if it's an either/or, which I get that it isn't) work on building and solidifying safety nets for those that need them so that no matter what they're making, and no matter what the price of bread ends up being, everyone can put food on the table.
I'm honestly trying to learn, so please be gentle. I don't claim to understand this - also, I was raised VERY politically conservative (and also very poor, if that matters), so I hope I don't sound dismissive/elitist/whatever.
This sounds accurate which is why it is so prevalent. The reality is that businesses charge "what the market will bear." There is always a price point as to what people are willing to spend. There is a function based on income, but it is not straight correlation. Labor is a portion of costs, but not the entire picture, there is also lease, electricity, wrap, etc.
I will take the ever popular hamburger option lol. So say McDonalds is currently charging $5/burger. If there is higher income they could feasibly increase the price. But, no one is going to be willing to go from paying $5 to paying $10 (since we are basically doubling min wage with the $15/hr). People will instead decide to go make their own hamburger (which was already cheaper but convenience is something we pay for). So they could probably get away with changing it to $7.50 but even that is a risk.
Yes, we already know that professions like teachers and nurses are vastly underpaid. The inequities that we are seeing and the shrinking middle class are not soley due to CEOs only paying their employees minimum wage, but rather from a systemic issue of underpaying many undervalued professions. No one with a masters in education should only be making $30,000 either.
I remember looking at public health jobs a few years ago. Minimum Master's required; starting salary $13/hour. Fucking bullshit.
Here's my question - let me preface by saying I'm all for raising minimum wage. Also that I have no knowledge of economics other than what I've picked up in everyday life.
However, in light of the conversation above, if minimum wage is raised, and then, praise be, other wages are ALSO raised (again, I'm totally in favor), doesn't that then also drive up the cost of food/cost of living/etc.? So don't we just end up in the same place we are now, but with higher numbers across the board? I guess my thought is that while raising minimum wage would be amazing, I would rather (if it's an either/or, which I get that it isn't) work on building and solidifying safety nets for those that need them so that no matter what they're making, and no matter what the price of bread ends up being, everyone can put food on the table.
I'm honestly trying to learn, so please be gentle. I don't claim to understand this - also, I was raised VERY politically conservative (and also very poor, if that matters), so I hope I don't sound dismissive/elitist/whatever.
This is what someone on another message board said. They also said if salaries were inflated because of increasing everyoneâs salary that would devalue the dollar. This person actually voted for Biden, but does have some very "interesting" views.
I did tell them Iâm not an economics major, so donât know all the details. I did point out that making sure people make a living wage like going from $20,000 to $30,000 doesnât mean that people making $100,000 also get a raise to $120,000.
So overall I donât think all other wages would go up.
Also, on a micro level thereâs that CEO that took a pay cut so all his employees made 70k, I believe. As far as what I read I donât think the cost of their products went up. There are certainly large companies that make so much money and pay their upper staff so much money, that they likely wouldnât have the raise the price on their goods if their million and billionaire leaders took a small pay cut to make sure all their employees had a living wage.
This argument is silly to me for many of the reasons pointed out here and also because the value of a job is about more than money. It's a LOT about money, but I work in the law and not in business management or the music industry or food service because...I like the law and am better suited to it. Other people making more money than they did before or making more money than me doesn't change that.
Here's my question - let me preface by saying I'm all for raising minimum wage. Also that I have no knowledge of economics other than what I've picked up in everyday life.
However, in light of the conversation above, if minimum wage is raised, and then, praise be, other wages are ALSO raised (again, I'm totally in favor), doesn't that then also drive up the cost of food/cost of living/etc.? So don't we just end up in the same place we are now, but with higher numbers across the board? I guess my thought is that while raising minimum wage would be amazing, I would rather (if it's an either/or, which I get that it isn't) work on building and solidifying safety nets for those that need them so that no matter what they're making, and no matter what the price of bread ends up being, everyone can put food on the table.
I'm honestly trying to learn, so please be gentle. I don't claim to understand this - also, I was raised VERY politically conservative (and also very poor, if that matters), so I hope I don't sound dismissive/elitist/whatever.
This is what someone on another message board said. They also said if salaries were inflated because of increasing everyoneâs salary that would devalue the dollar. This person actually voted for Biden, but does have some very "interesting" views.
I did tell them Iâm not an economics major, so donât know all the details. I did point out that making sure people make a living wage like going from $20,000 to $30,000 doesnât mean that people making $100,000 also get a raise to $120,000.
So overall I donât think all other wages would go up.
Also, on a micro level thereâs that CEO that took a pay cut so all his employees made 70k, I believe. As far as what I read I donât think the cost of their products went up. There are certainly large companies that make so much money and pay their upper staff so much money, that they likely wouldnât have the raise the price on their goods if their million and billionaire leaders took a small pay cut to make sure all their employees had a living wage.
This is where the true problem lies. Raising the minimum wage and even the "middle" wages, doesn't necessarily HAVE to raise the price of the products. But, it will necessitate the 1% to make less and the profit margins to lower, which will anger the shareholders, and heaven forbid we do that. That's why the stock market is booming still. Corporations care more about the shareholders than the employees that generate those revenues. And unfortunately, I don't see a way out of it. Because if the lower paid get the raises, they won't do the "right" thing explained above, they'll raise prices and piss off the working and middle class and blame socialism.
This argument is silly to me for many of the reasons pointed out here and also because the value of a job is about more than money. It's a LOT about money, but I work in the law and not in business management or the music industry or food service because...I like the law and am better suited to it. Other people making more money than they did before or making more money than me doesn't change that.
Not to mention that people making higher wages generally have more control over their professional path and job choices.
While I know it's more complicated that this, the argument that works the best for me with folks like this is, essentially, "capitalism." If an EMT currently earns, say, $17/hr and the grocery store starts paying $15/hr, some folks will keep the EMT job because they love it, but others will say, "Why the heck am I putting my life on the line? I'll just go get a job at the grocery." That doesn't mean we won't have EMTs- it means that companies will have to pay EMTs more to attract and retain the best talent.
ETA: Even if my salary as a professor doesn't increase in the way that my administrative assistant's does (and it shouldn't) my job security actually goes up because more people can afford to go to college (and buy cars, and travel, and purchase more widgets...)
Itâs also not just about wages. Most minimum wage jobs donât offer sick leave or PTO. They also often are not respected or treated well. And maby are not 9-5 jobs, there are weekend shifts they must work, not to mention no paid holidays.
Post by thelurkylulu on Jan 23, 2021 10:36:30 GMT -5
Thanks SwimDeep for posting this thread because I too struggle with this. Also, one thing I see and hear a lot is that these minimum wage jobs arenât meant to be lifetime jobs. A lot of people think they should just be stepping stones for growth. Obviously, I find that mindset to be quite privileged and out of touch, but I struggle with how to respond with fact based information in a way that might make someone change their thoughts.
Post by formerlyak on Jan 23, 2021 10:42:59 GMT -5
Related question that falls into the âsomeone smarter than me in economicsâ can hopefully explain category. All the given examples are related to large companies where inflated executive salaries could and should shrink a bit to allow for better pay for the minimum wage or lower wage workers. But how does this work with a small business, say a privately owned restaurant or clothing store, that is operating on a very small margin? If they are currently paying their employees federal minimum wage of $11 and need to increase that across the board to $15 per hour, where does that come from if the shop owner is already barely making rent, utilities and basic shop expenses? Unless there are accompanying regulations on rent increases for commercial properties (which is actually the thing that causes a lot of businesses in my city to close - big, one time rent hikes) and other âfixedâ costs, how is it not passed on to the consumer?
Itâs also not just about wages. Most minimum wage jobs donât offer sick leave or PTO. They also often are not respected or treated well. And maby are not 9-5 jobs, there are weekend shifts they must work, not to mention no paid holidays.
This is a good point and I thought of this as well with my own situation. Yes, I have a salary but I also have pretty decent benefits including health insurance. That is a huge out of pocket expense if you choose to pay for it or you go without and risk potentially incurring more debt for a medical emergency.
Not even remotely close to knowing enough about economics, but I think what bothers me is the inequity. Would I like more money? Sure. But I picture my life if I made lets say $500k a year. I don't know what I would do with it all..sure vacations, houses, cars, but....I just don't see why the 1% can't be taxed more or make less. I know, capitalism and everything. Maybe I am crabby this week about working my ass off so rich white guys can get richer :/
While I know it's more complicated that this, the argument that works the best for me with folks like this is, essentially, "capitalism." If an EMT currently earns, say, $17/hr and the grocery store starts paying $15/hr, some folks will keep the EMT job because they love it, but others will say, "Why the heck am I putting my life on the line? I'll just go get a job at the grocery." That doesn't mean we won't have EMTs- it means that companies will have to pay EMTs more to attract and retain the best talent.
ETA: Even if my salary as a professor doesn't increase in the way that my administrative assistant's does (and it shouldn't) my job security actually goes up because more people can afford to go to college (and buy cars, and travel, and purchase more widgets...)
@@ This is what we hear in my field (early childhood) all the time. âI could go work at Target and make more money.â Yes, you could, and if thatâs what you feel you need to do, weâre not going to stop you. So, our management team has spent months/years trying to reconfigure our pay structure and just recently (Jan 1) started paying employees with a degree more than the minimum wage discussed in this thread. (We never paid anyone the actual minimum wage, I believe our starting pay is $11-12 for people with no experience.) Our margins are slim and we certainly cannot pass the costs on to families who are already paying top dollar for care. We are certainly going to feel the pinch, however we believe it is essential to invest in our staff. Iâm really curious to see how this all impacts what weâve just put in motion. I firmly believe that people working a full time job, especially those with a degree, should be able to cover their monthly expenses.
Here's the best answer to "won't the cost of living just increase if we raise the minimum wage?"
The cost of living is ALREADY increasing, whether we raise minimum wage or not. It's gone up 20% since the last time we raised the federal minimum wage in 2009. Costs like housing and health insurance have gone up even faster.
And if you're worried about the cost of burgers doubling, don't. In Denmark McDonald's pays its employees $20/hr. Their Big Mac costs 35 CENTS more.
This is like when Papa John refused to pay health insurance to his employees because the cost of a pizza would go up 14 CENTS.
It's absolutely criminal to pay poverty wages and force full time employees to rely on the social safety net for basic needs like housing and food. That's a massive government subsidy of capitalism. And to people making $20/hr worried about raising minimum wages to $15, go complain to your bosses about being underpaid. The problem isn't minimum wage workers, it's the people underpaying them.
Related question that falls into the âsomeone smarter than me in economicsâ can hopefully explain category. All the given examples are related to large companies where inflated executive salaries could and should shrink a bit to allow for better pay for the minimum wage or lower wage workers. But how does this work with a small business, say a privately owned restaurant or clothing store, that is operating on a very small margin? If they are currently paying their employees federal minimum wage of $11 and need to increase that across the board to $15 per hour, where does that come from if the shop owner is already barely making rent, utilities and basic shop expenses? Unless there are accompanying regulations on rent increases for commercial properties (which is actually the thing that causes a lot of businesses in my city to close - big, one time rent hikes) and other âfixedâ costs, how is it not passed on to the consumer?
Overall I think as a business owner theyâd have to make tough decisions. Can the price increase on an item 25 cents? What does the data say about how much people are willing to pay for X item? Can the owner take a pay cut? Can they renegotiate any of their contracts? I do think letting someone go might also be a possibility until things re-calibrate.
Right before Covid I went to a panel of local restaurant owners in neighborhoods of people of color. There was lots of talk about gentrification. 1 owner did say he tried to increase the price of drinks at his bar but long time loyal customers got mad. Ultimately I think he came up with a compromise like having lunch special deals and extending happy hour but drink prices were still increased, but that was a happy medium for customers and his business expenses. So thatâs just a small example.
Cost of living is already going up and there are thresholds that are to be expected. A Big Mac isnât going to all of a sudden need to be $25, thatâs not how it works.
Related question that falls into the âsomeone smarter than me in economicsâ can hopefully explain category. All the given examples are related to large companies where inflated executive salaries could and should shrink a bit to allow for better pay for the minimum wage or lower wage workers. But how does this work with a small business, say a privately owned restaurant or clothing store, that is operating on a very small margin? If they are currently paying their employees federal minimum wage of $11 and need to increase that across the board to $15 per hour, where does that come from if the shop owner is already barely making rent, utilities and basic shop expenses? Unless there are accompanying regulations on rent increases for commercial properties (which is actually the thing that causes a lot of businesses in my city to close - big, one time rent hikes) and other âfixedâ costs, how is it not passed on to the consumer?
Iâm just going to say it: if you canât afford to pay your employees a living wage (and benefits) you cannot afford to be in business.
I know that isnât popular. I know it isnât fair. But thatâs capitalism. If we have an issue with that we need to change the system. The answer is not for business owners to continue exploiting low wage workers in order for their small businesses to stay open.
Related question that falls into the âsomeone smarter than me in economicsâ can hopefully explain category. All the given examples are related to large companies where inflated executive salaries could and should shrink a bit to allow for better pay for the minimum wage or lower wage workers. But how does this work with a small business, say a privately owned restaurant or clothing store, that is operating on a very small margin? If they are currently paying their employees federal minimum wage of $11 and need to increase that across the board to $15 per hour, where does that come from if the shop owner is already barely making rent, utilities and basic shop expenses? Unless there are accompanying regulations on rent increases for commercial properties (which is actually the thing that causes a lot of businesses in my city to close - big, one time rent hikes) and other âfixedâ costs, how is it not passed on to the consumer?
Iâm just going to say it: if you canât afford to pay your employees a living wage (and benefits) you cannot afford to be in business.
I know that isnât popular. I know it isnât fair. But thatâs capitalism. If we have an issue with that we need to change the system. The answer is not for business owners to continue exploiting low wage workers in order for their small businesses to stay open.
This is such a problem in healthcare, ugh.
I get paid through my organization which is a non profit but the rest of the support staff has union representation. I recently found out they were asking for a 3% raise which was denied. They all do make a so called living wage, but it is low especially for a high cost of living area.
So here I am feeling guilty making 6 figures. My salary is low-ish for my profession in general and also why I have 3 other per-diem jobs to now support myself (and my partner thanks to COVID). But obviously itâd be better if my salary were lower so that the rest of the staff could get paid more, but if I quit I donât think there are many doctors thatâd take the job for the "low" salary.
It really is a moral dilemma for me and youâre absolutely right that places shouldnât exist that canât pay people better salaries, which happens all the time in healthcare.
Iâm just going to say it: if you canât afford to pay your employees a living wage (and benefits) you cannot afford to be in business.
I know that isnât popular. I know it isnât fair. But thatâs capitalism. If we have an issue with that we need to change the system. The answer is not for business owners to continue exploiting low wage workers in order for their small businesses to stay open.
This is such a problem in healthcare, ugh.
I get paid through my organization which is a non profit but the rest of the support staff has union representation. I recently found out they were asking for a 3% raise which was denied. They all do make a so called living wage, but it is low especially for a high cost of living area.
So here I am feeling guilty making 6 figures. My salary is low-ish for my profession in general and also why I have 3 other per-diem jobs to now support myself (and my partner thanks to COVID). But obviously itâd be better if my salary were lower so that the rest of the staff could get paid more, but if I quit I donât think there are many doctors thatâd take the job for the "low" salary.
It really is a moral dilemma for me and youâre absolutely right that places shouldnât exist that canât pay people better salaries, which happens all the time in healthcare.
As always, youâre an extremely conscientious person. â¤ď¸ So many interconnected issues here - starting with the cost of medical education, continuing through the abysmal insurance reimbursement rates (especially for Medicaid and mental health writ large...), on to what the role of government should be in supporting industries that need to exist because they are a public good. All things that need to be addressed and I think my point is much more that we should raise the minimum wage/pay living wages/pay better in general AND also address those other things than that anyone should go without.
I think thereâs a much bigger moral dilemma at play when we allow for-profit companies or even small businesses making widgets that arenât necessary for life to do the same. If your tea company or whatever canât afford to pay employees fairly it needs to not exist. If your medical office that provides necessary services canât afford to pay employees fairly we need to look at why that is and fix those problems.
Keep wages the same and give everyone UBI by taxing the super rich.
Walla! #yanggang
Omg can you even imagine all of the âbut I donât even need this government stimulus money and our children will be paying for this forever!!!!!111â people. đđ
While I know it's more complicated that this, the argument that works the best for me with folks like this is, essentially, "capitalism." If an EMT currently earns, say, $17/hr and the grocery store starts paying $15/hr, some folks will keep the EMT job because they love it, but others will say, "Why the heck am I putting my life on the line? I'll just go get a job at the grocery." That doesn't mean we won't have EMTs- it means that companies will have to pay EMTs more to attract and retain the best talent.
ETA: Even if my salary as a professor doesn't increase in the way that my administrative assistant's does (and it shouldn't) my job security actually goes up because more people can afford to go to college (and buy cars, and travel, and purchase more widgets...)
@@ This is what we hear in my field (early childhood) all the time. âI could go work at Target and make more money.â Yes, you could, and if thatâs what you feel you need to do, weâre not going to stop you. So, our management team has spent months/years trying to reconfigure our pay structure and just recently (Jan 1) started paying employees with a degree more than the minimum wage discussed in this thread. (We never paid anyone the actual minimum wage, I believe our starting pay is $11-12 for people with no experience.) Our margins are slim and we certainly cannot pass the costs on to families who are already paying top dollar for care. We are certainly going to feel the pinch, however we believe it is essential to invest in our staff. Iâm really curious to see how this all impacts what weâve just put in motion. I firmly believe that people working a full time job, especially those with a degree, should be able to cover their monthly expenses.
I have an education degree and used to work in ECE as well. I stopped searching out jobs because they required 3 years of experience, certifications and paid minimum wage here. So I could have continued working at a preschool and earning $7.50 an hour, or I could work at the grocery store for $12 (at the time now $15) or I could work in a call center for $16. It made no sense to continue to seek out a job that paid less and had more responsibilities.
I had a classroom position, which technically paid more, but I ended up taking home 20% more by working at the call center because of health benefits, which I can not afford to skimp on because I have 3 chronic conditions, plus a strong family history of pretty much every cancer. Of course, there was more respect in a degreed field, but I can not continue to live with the inability to save any money.
It is because as a society we value people who earn money over those in more people fields. It is not sustainable.