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alansmithee · 11-17-2004, 01:40 AM

[QUOTE=smooth
So we need to do a couple of things:

1. Raise the minimum wage commensurate with inflation

2. Raise the poverty threshhold

3. Develop a plan to get these workers some preventive health care.[/QUOTE]

Actually, that's 3 things

But seriously, the impact of a wage raise like that is quite substantial. For every economist that says wage increase would not impact jobs, there is one who says it will. Also, if it doesn't impact jobs, it will impact prices. What does it matter if everyone makes $10 per hour if now a loaf of bread is $6? The problem isn't the monentary value, it's real wage. And real wage won't rise unless you desire some mandated cap on profits of a company, because the increase in cost of providing labor for that company will be offset by dropping the labor force and/or increasing prices.

And for raising the poverty threshhold, I don't see that as being a big deal. All that is doing is changing the framework of a problem, but it won't go anywhere to solving a problem. For one, there are already many current metrics that would point out the poor lifestyle of many working poor (some of which you pointed out). Statistics are rarely enough to get the average person to care about an issue. Case in point: in 2003, many economists were actually saying that a RISE in the unemployment rate would point to an improving economy, versus a lowering. This is due to the way the unemployment rate is figured, and that the higher rate would show an increase in people looking for jobs again after losing confidence in the economy.

Rather than just raising minimum wage, I would prefer to see a shift in the way schools are run toward a model closer to Germany's. In Germany, many businesses invest in high schools, and also provide pseudo-apprenticeships for students. Not only does this give businesses a vested intrest in its future employees (staving off outsourcing), but it provides the businesses with highly trained employees with company loyalty. It won't help many of the people now, but something like this, IMO, would go a long way toward helping the development of a future middle class. Plus, the economic impact wouldn't be as unpredictable as just a blanket minimum wage increase.

As an aside, California is just an extremely expensive place to live if a bad apartment is $1,600. I live in Michigan, and a very nice 2 bedroom apartment can easily be had most places for around $700 (and that's for a fairly high-end place).

11-17-2004, 01:40 AM	#8 (permalink)
alansmithee Junkie	[QUOTE=smooth So we need to do a couple of things: 1. Raise the minimum wage commensurate with inflation 2. Raise the poverty threshhold 3. Develop a plan to get these workers some preventive health care.[/QUOTE] Actually, that's 3 things But seriously, the impact of a wage raise like that is quite substantial. For every economist that says wage increase would not impact jobs, there is one who says it will. Also, if it doesn't impact jobs, it will impact prices. What does it matter if everyone makes $10 per hour if now a loaf of bread is $6? The problem isn't the monentary value, it's real wage. And real wage won't rise unless you desire some mandated cap on profits of a company, because the increase in cost of providing labor for that company will be offset by dropping the labor force and/or increasing prices. And for raising the poverty threshhold, I don't see that as being a big deal. All that is doing is changing the framework of a problem, but it won't go anywhere to solving a problem. For one, there are already many current metrics that would point out the poor lifestyle of many working poor (some of which you pointed out). Statistics are rarely enough to get the average person to care about an issue. Case in point: in 2003, many economists were actually saying that a RISE in the unemployment rate would point to an improving economy, versus a lowering. This is due to the way the unemployment rate is figured, and that the higher rate would show an increase in people looking for jobs again after losing confidence in the economy. Rather than just raising minimum wage, I would prefer to see a shift in the way schools are run toward a model closer to Germany's. In Germany, many businesses invest in high schools, and also provide pseudo-apprenticeships for students. Not only does this give businesses a vested intrest in its future employees (staving off outsourcing), but it provides the businesses with highly trained employees with company loyalty. It won't help many of the people now, but something like this, IMO, would go a long way toward helping the development of a future middle class. Plus, the economic impact wouldn't be as unpredictable as just a blanket minimum wage increase. As an aside, California is just an extremely expensive place to live if a bad apartment is $1,600. I live in Michigan, and a very nice 2 bedroom apartment can easily be had most places for around $700 (and that's for a fairly high-end place).