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Re: ignorant of basic economics, eh?
Mon Oct 09, 2006 at 06:10:33 PM EST
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Ah, I see. Support for a higher minimum wage = Ignorance of basic economics. I'd like to see you make that case.
tnt needs to track moderation. stats page!
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Re: ignorant of basic economics, eh?
Tue Oct 10, 2006 at 12:09:33 AM EST
2.33 (illiterate, obnoxious, astute)
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I'd like to see you go buy a book on economics and read it.
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Re: ignorant of basic economics, eh?
Thu Oct 12, 2006 at 02:31:26 PM EST
5.00 (informative)
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Well, it isn't a book, but this article might surprise you, SU.
Of course, 650 economists (including five Nobel Prize winners in the same field) could be wrong, and you could be right.
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Re: ignorant of basic economics, eh?
Thu Oct 12, 2006 at 04:44:29 PM EST
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Did you see me QL on the sidebar titled "Sad"? It should be noted that the overwhelming majority of economists don't support raising the minimum wage.
In all seriousness, it is sad. If these economists think they are right, that must mean they believe the Neumark paper (to take just one example) I linked to above is flawed or mistaken. So they should publish a paper on this. I suspect they haven't because they can't, but if the majority of economists are wrong and they are right they have an even greater obligation to publish on this, so it's sad they haven't. And because they haven't and because Klein, Solow and Stiglitz worked for Carter, LBJ, and Clinton, respectively, they open themselves to charges of bias.
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LOL
Tue Oct 10, 2006 at 08:18:06 AM EST
3.00 (astute, obnoxious, obnoxious)
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That's what I thought.
You sure you don't want to play? I mean, if your position is so superior that you'd have to be 'ignorant of basic economics' to disagree it should be real easy, right? Like you could just link to all those empirical studies demonstrating a link between minimum wage increases and market-wide wage inflation, general inflation, or job loss. And you'd certainly have a hard time finding studies demonstrating the opposite. I mean, unless your shallow understanding of the issue was based on some oversimplified general macroeconomic principles that don't actually bear out in practice.
Right?
tnt needs to track moderation. stats page!
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Re: LOL
Tue Oct 10, 2006 at 12:32:50 PM EST
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Like you could just link to all those empirical studies demonstrating a link between minimum wage increases and market-wide wage inflation, general inflation, or job loss.
If raising the minimum wage doesn't increase inflation or job losses why are the Democrats being so stingy and only wanting to raise it to $7.25? Why not make it $100 an hour and well all be rich! Rich I tell you, rich!
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Nice Strawman
Tue Oct 10, 2006 at 12:45:04 PM EST
3.80 (astute, funny, obnoxious)
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If breathing is so great why don't you inject liquid oxygen into your lungs under pressure?
tnt needs to track moderation. stats page!
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Re: Nice Strawman
Tue Oct 10, 2006 at 01:05:25 PM EST
1.00 (obnoxious, obnoxious)
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So are you saying if they raised the minimum wage too much we'd all die of Pulmonary Oxygen Toxicity?
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Re: Nice Strawman
Tue Oct 10, 2006 at 03:08:27 PM EST
1.00 (offtopic)
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It's kinda lame to argue with my points and then go and downmod them all as well. Couldya pick one or the other?
Or maybe join me in asking the site coders to force people to choose one or the other?
You have to admit it's pretty cheesy.
tnt needs to track moderation. stats page!
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Re: Nice Strawman
Tue Oct 10, 2006 at 03:21:47 PM EST
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Sorry about that, actually... I was kinda playing around with the moderation system and was seeing what it let you do and didn't do. Apparently its way more liberal than I thought possible. The "rate all" button doesn't seem to do what I thought it did either. I went back and tried to fix things though.
It does seem kinda messed up overall though. I'm not sure there are enough comments on this site to need moderation...
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Re: Nice Strawman
Tue Oct 10, 2006 at 03:37:15 PM EST
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Well good, that's why I waited to hear from you before downmodding all your comments myself. No problem.
tnt needs to track moderation. stats page!
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Re: LOL
Tue Oct 10, 2006 at 01:18:17 PM EST
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"Like you could just link to all those empirical studies demonstrating a link between minimum wage increases and market-wide wage inflation, general inflation, or job loss."
There are so many empirical studies you could easily look them up yourself if you actually cared about the facts of this matter.
I don't know what you mean by "market-wide wage inflation".
Minimum wage increases don't cause inflation.
The employment effect of minimum wage increases is not just job losses, it's reduced hours, as well as under appreciated longer term effects.
If the desire is to improve the lot of the poor, let employers hire them at market wages, and subsidize those that make less than a certain amount using remedies like the EITC. It would also help if steps were taken to reduce the supply of unskilled labor.
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Re: LOL
Tue Oct 10, 2006 at 02:47:48 PM EST
3.00 (interesting)
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If the desire is to improve the lot of the poor, let employers hire them at market wages
I know little about economic theory, but on the face of it, this sounds like a terrible idea to me. I'm going to follow this up with an anecdote, which I know is something of a faux pas, but please bear with me.
Wal-Mart just opened up a store on the South Side of Chicago. I forget the number of jobs available, but as I recall something like 5,000 people applied for a job there, and there couldn't have been more than, say 500 jobs available. They interviewed some of the new employees, and one sticks out in my mind, a mother (single, I believe) who took an entry level job. She's not a skilled worker. Her hourly wage is measly (I can't imagine how she could provide for herself and a child, or children, on that one job), and she said as much, but said it was the best she'd been able to get in her area. Now, given the glut of people who were willing to work at Wal-Mart, willing to do this woman's job, Wal-Mart could have easily filled that position by paying someone else less. Here's a woman already working for less than she would like, less money, it sounded like, than she would need to actually do well by her family, and the only reason her pay isn't lower is that she's not competing on the open market.
I did a brief stint at a part-time job recently. They paid me peanuts. I got health benefits though. There were people working the same job who needed the money much more than I did, but I was in an OK financial position. I could have, and probably would have, done the job for even less. There's millions of teens out there who just need to make a little spending money who would do the same.
Of course, it would be different around the country, but I get the feeling that the open market could only make things worse for people already working in low- or un-skilled positions. There are enough people not working, or enough people who only need some money, that many of those most in need would be working for nothing, simply because they have to in order to get the job. This is already the case for many. Look at immigrants and how little they are willing to work for. I'm sure there are hundreds of thousands, if not millions of natives-born who would do the same. It sounds to me like this would make the number of people in that position go up, not down.
Now with caps!
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Re: LOL
Tue Oct 10, 2006 at 03:27:26 PM EST
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Only about 2% of workers earn the minimum wage. It doesn't prop up anyones wages, it merely excludes the lowest productive workers. You use Wal-Mart as an example, Wal-Mart already pays most of it's employees more than minimum wage. Force them to pay more, and they will alter who and how many people they employ.
"Look at immigrants and how little they are willing to work for"
Illegal aliens illustrate an aspect of the senselesness of minimum wage laws, as many of them earn more than the minimum wage (the ones in construction), even though employers who are hiring illegal workers obviously are not constrained by minimum wage laws.
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Re: LOL
Tue Oct 10, 2006 at 04:09:08 PM EST
4.00 (interesting)
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Only about 2% of workers earn the minimum wage.
I'm not sure what the numbers are, but that could be between thousands and millions of people, couldn't it?
It doesn't prop up anyones wages, it merely excludes the lowest productive workers.
So, you're saying that if wages at the bottom were lower, more people would be working? (Although, presumably, more people working for less than $5 an hour)
You use Wal-Mart as an example, Wal-Mart already pays most of it's employees more than minimum wage. Force them to pay more, and they will alter who and how many people they employ.
Doesn't a Wal-Mart store have a certain minimum of people they need to work their to meet the needs of their customers? Are you saying that if they had to pay another dollar an hour, suddenly there would be a few less check-out people, or the bathrooms would get dirtier because there wouldn't be enough janitors?
Illegal aliens illustrate an aspect of the senselesness of minimum wage laws, as many of them earn more than the minimum wage (the ones in construction), even though employers who are hiring illegal workers obviously are not constrained by minimum wage laws.
I don't see how that points to a hole in the minimum wage idea. The minimum wage is just that - the minimum. There will always be people who make more than that, either because they are more skilled than the lowest skilled worker (as I would think is the case in construction. There are so many illegal workers who know something about construction that, at this point, they can ask for more than the minimum wage. They are also saving the employer money compared to hiring a legal worker, so while they are not making less than the minimum in the country, they may be well below the average in the industry, though I don't know for sure).
I'm willing to believe that the minimum wage, or that raising it anyway, is a bad idea. But so far, I haven't seen convincing arguments (granted, I haven't read much about it). I've gone over a few websites, etc, but again, I'm not an economist. Alot this stuff is over my head. (As an example, one argument is that as the minimum wage rises, then employers will hire fewer workers. However, if the free market will supposedly raise the wages of those at the bottom, then why wouldn't the same thing happen? In both cases, employers would have to pay their bottom-rung workers more, so why would they not also hire fewer people?)
Is there no simple explanation for the problem with the minimum wage? Because it seems there's simple evidence for why it's a good thing, and why it may seem too low. If you want to win the argument on the minimum wage, you have to figure out how to convince people who are far less willing or likely to read more about it than I am.
Now with caps!
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Re: LOL
Tue Oct 10, 2006 at 04:19:46 PM EST
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Whoops.. I left off a small portion of my comment somehow in the cut and paste... Anyway, there was supposed to be an "or" after the "either because they are more skilled" part. "Or" being simply that there are employers out there who believe in paying all of their workers above the minimum wage. That is all.
By the way, these nested comments get reeeeeally thin after the thread runs for more than a few comments. It really sucks.
:D
Now with caps!
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Re: LOL
Tue Oct 10, 2006 at 05:55:54 PM EST
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"if wages at the bottom were lower, more people would be working"
At least some of them, yes. There are some workers employers would be willing to hire if allowed to pay them less than minimum wage, and there are some jobs that would exist that don't as well.
"I don't see how that points to a hole in the minimum wage idea"
It illustrates the fallacy that without a minum wage everyone would be working for 10 cents an hour.
"Alot this stuff is over my head"
It's not, though. Labor is a good like any other. Raise the price, less of it's purchased. From the employer standpint, the minimum wage is a tax on hiring the least skilled workers.
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Re: LOL
Tue Oct 10, 2006 at 07:15:47 PM EST
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It illustrates the fallacy that without a minum wage everyone would be working for 10 cents an hour.
I don't believe that would happen without minimum wage, and I don't think the Democratic party believes that either. On the other hand, I do think they believe, as do I at the moment, that without that minimum, a great many people would be taken advantage of and the number of "working poor" might increase, not decrease.
Labor is a good like any other.
I can't just take your word for that.
Raise the price, less of it's purchased. From the employer standpint
Again, earlier you argued that if there were no minimum wage, the free market would raise the wages of some of the less skilled workers. Wouldn't then, by your own argument, fewer workers be hired, hence, more unemployment?
the minimum wage is a tax on hiring the least skilled workers.
That sounds like a sound-byte. I don't mean to harp on you, and I appreciate your responses to my questions, but I'm not feeling alot of persuasive argument here yet. If there were no minimum wage, how do we know that there wouldn't be alot more people making alot less money?
Now with caps!
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Re: LOL
Tue Oct 10, 2006 at 08:52:43 PM EST
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"earlier you argued that if there were no minimum wage, the free market would raise the wages of some of the less skilled workers. Wouldn't then, by your own argument, fewer workers be hired, hence, more unemployment?"
You misunderstood what I said. If there were no minimum wage, some workers that as of now are priced out of the labor market would get hired.
"If there were no minimum wage, how do we know that there wouldn't be alot more people making alot less money"
In part because so few people make minimum wage now.
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FYI
Tue Oct 10, 2006 at 10:47:18 PM EST
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I'd read this, but your arguments are too thin.
It's the end of the world as we know it, and I feel fine
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Re: LOL
Wed Oct 11, 2006 at 09:33:59 AM EST
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You misunderstood what I said. If there were no minimum wage, some workers that as of now are priced out of the labor market would get hired.
I looked back and you're right, it could have been taken that way. I was kind of mixing your point with one I'd read elsewhere. My bad.
Now with caps!
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Re: LOL
Tue Oct 10, 2006 at 01:47:28 PM EST
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There are so many empirical studies you could easily look them up yourself if you actually cared about the facts of this matter.
Indeed, and I did, which is why I asked you to present your argument. There are a variety of reasons people claim raising the minimum wage is counterproductive and I can't address your claim unless you tell me which one you believe.
I don't know what you mean by "market-wide wage inflation".
That would be the argument that raising the minum wage "trickles up" and causes wage inflation at all levels of the economy.
The employment effect of minimum wage increases is not just job losses, it's reduced hours, as well as under appreciated longer term effects.
While I can't respond to the abstract you linked to as the paper itself is unavailable, your other claims (job losses, reduced hours) are quite controversial and dependent upon the specifics of the wage rate and other economic factors in the subject area. See the UK Low Pay Commission's work for instance.
tnt needs to track moderation. stats page!
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Re: LOL
Tue Oct 10, 2006 at 02:04:34 PM EST
1.00 (illiterate)
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"That would be the argument that raising the minum wage "trickles up" and causes wage inflation at all levels of the economy."
I would hope no economists are making that argument.
" your other claims (job losses, reduced hours) are quite controversial "
No, they are widely supported by loads of research.
"See the UK Low Pay Commission's work for instance"
I might, if you provided a link.
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Re: LOL
Tue Oct 10, 2006 at 06:57:21 PM EST
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One example (pdf), the low pay commission's analysis of the UK's 2003 NMW increase and its effects on employment.
Obviously the minimum wage can't be set arbitrarily but it has economic effects that are both negative and stimulative and it's entirely possible for the stimulative effects to outweigh the negative ones. You rightie pseudoeconomists love the Laffer curve. Think of the economic effects of the minimum wage as falling on a laffer curve.
Of course the reality is more complex. Macroeconomics are more hueristics than laws of nature. But in the macro picture the fact is that as long as you have unemployment marginal workers are at a competitive disadvantage bargaining for wages. Failure to account for the wages of the unemployed creates a de-facto Oligopsony over marginal jobs.
Somewhat like yourself, I think that a blend between earned income credit and negative income tax is a better approach to the problem of sub-poverty wages. Because frankly I've worked with people that should have been paid to sit at home on their asses because they would have done less economic damage that way. But I don't think the economic merits of the minimum wage are anywhere near as simple and wrong as you'd like to pretend. To claim that only the economically ignorant would support a higher minimum wage in the US is simply slanderous when many economists do in fact believe the minimum wage can be a useful tool in improving general standard of living without substantial impact on employment or productivity.
tnt needs to track moderation. stats page!
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Re: LOL
Tue Oct 10, 2006 at 07:27:25 PM EST
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Forgive me for not considering that paper enough to overturn the consenus.
Is the unskilled labor market subject to significant oligopsony effects? I don't think that it is. Minimum wage laws could increase an oligopsony effect, as larger employers are more able to adjust to them than smaller ones.
"many economists do in fact believe"
A few believe so, with qualifications.
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Re: I was interuppted...
Tue Oct 10, 2006 at 09:01:43 PM EST
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"To claim that only the economically ignorant would support a higher minimum wage in the US is simply slanderous "
Given the general consensus, isn't the burden of modesty on those that advocate raising the minimum wage? But you never hear them admit to the overwhelming evidence against their position. Because they aren't aware of it, and because advocating raising the MW more readily lends itself better to demogoging opponents as greedy misers who dislike the poor than advocating increasing the EITC.