The minimum wage: does it hurt workers?
ฝัง
- เผยแพร่เมื่อ 4 ก.พ. 2021
- Joe Biden has pledged to raise America's national minimum wage to $15 an hour. Economists traditionally believed that minimum wages actually hurt workers, but recent research has led to a rethink.
Sign up to The Economist’s newsletter to stay up to date: econ.st/3tgaHl5
Find all of our finance and economics coverage: econ.st/3pujLQM
Why does low unemployment no longer lift inflation? econ.st/3j8sWEj
Why a surge in inflation looks unlikely: econ.st/3oHqMg7
What the Big Mac index tells you about currency wars: econ.st/3as0ysH
Read our special report on the world economy: econ.st/3j78Qdy
Economists are turning to culture to explain wealth and poverty: econ.st/3oGhu3Y
What is the economic impact of the latest round of lockdowns? econ.st/3j77Aak
Could the pandemic cause economists to rethink welfare? econ.st/36AgoR7
Why governments can borrow more than was once believed: econ.st/3oKO6cG
Why Joe Biden’s proposed stimulus is too big: econ.st/2YMyMSl
Will President Biden’s fiscal stimulus overheat the American economy? econ.st/36zXLfP
How quickly will America’s labour market recover? econ.st/3tkg5n1
How wage gains for low earners helped to sustain America’s economic expansion: econ.st/3aqwBsX
![บุษบา - มอส รัศมี [COVER VERSION]](http://i.ytimg.com/vi/_n0yENSl8d8/mqdefault.jpg)
I worked minimum wage jobs in Seattle from about 2012-2018, and in my experience they don't cut your hours because of the wage--they cut your hours so they can keep you part time and not pay for health insurance.
Since employers contribute money towards insurance, that suggests that companies would rather use loopholes to avoid compensating their employees. So if there were no minimum wage, employers would have a field day.
That is a real issue, one that should also be addressed!!
Affordable healthcare for all -
Independent contractors, for example real estate agents, are dependent on irregular earnings, similarly many in the arts - actors, musicians, are mostly in similar positions (I'm not sure if organizations like SAG offer/provide any help here, but suspect vast majority haven't got more security in terns of healthcare than than the independent RE agent.)
Dude, you seem to think it's just a matter of greed on the part of the Employer. If it's really that easy, if you really know so very much about it. Why did you spend so very long working for someone else? So far as that goes. If you are such a valuable Worker. How did you manage to ONLY make minimum wage for 6 whole years? With your obviously vast knowledge and skill, not to mention experience. Why aren't you running your own business and employing who knows how many hundreds, even thousands of people while paying them what they are worth?
Obama care did make a lot of people's full time job turn part time.
No matter how high or low we set our minimum wage, our wage should at least keep up with inflation
Have you seen an inflation, at the last decade?
Inflation is measured as being neglible, because while the price of basic goods and services continue to go up, the price of superficial and what were once considered luxury goods go down.
The problem with that is it breaks the markets ability to signal prices.
What if the reason why your wage can't keep up with inflation is because there is less demand for the product of your work? By keeping the wage where it is, other workers with your job that have opportunities outside of it will move to other jobs that produce products that are more in demand.
@@bradsubramaniam4429 what a horribly thought out opinion
@@bradsubramaniam4429 no idiot there should be a minimum wage otherwise employers could just mug of desperate people
Economics: when price goes up, people want less of it.
Apple inc: 🤣🤣🤣 You got me.
Apples dropping their prices wonder why 🤔
You know why? Because of scarcity. People have only two choices for phone: an iPhone or an Android. For labour, there are plenty to choose from. Same applied to jobs, companies are willing to pay higher for certain skills that are hard to find.
So what stops apple from charging $2000 per phone? Oh yeah when a price goes up people want less of it.
@@koboldhelper or 20,000 for that matter
@@HuyHoanghouston not just because of scarcity though- surely you'd have noticed that people like to show off their wealth with their apple products? or that people believe that by paying more t hey will get a better phone? i think thats a bigger reason because if apple dropped all of their prices they would be the more competitive of android and iphone, but the prestige people attach to iphones means that they dont really need to do that for people to buy it. sorry this was a bit convoluted! basically people are irrational and like to look rich
“Does the minimum wage hurt workers?”
Video: WE DON'T KNOW YET.
That's not the question that was asked. 😂
@@giogvarianashvili6309 it’s literally the title
This video was a wash. Reasonable minimum wages don't hurt workers and this whole conversation is business propaganda based on decades old thinking. Advanced economies around the world that have minimum wages that allow people to live well on one job are doing just fine.
It hurts whole economy.
@@flybefree, are you sure about that? There isn't a single place anywhere in the World where it is possible to live on the prevailing minimum wage without depending upon public assistance (welfare). Canada? nope. Netherlands? nope. Europe? nope. UK? nope. Australia? still nope.
Federal minimum wage is an impractical concept, 15 dollars an hour isn't the same in New York City compared to someone living in rural Alabama. The minimum wage needs to be adjusted to the cost of living of the area.
But $7.25/hr is still too little everywhere
stating the obvious
*Rich* U.S liberal socialists: "we want more money"
Companies: "No" *moves to Mexico*
Actual minimum wage workers: "spare change please"
What if the federal minimum wage was the minimum needed in the cheapest geographical region. And then states/cities could choose make their minimum higher than the federal minimum.
Would you support this system?
Try living off $15 an hour in New York. Wouldn’t it be better for a minimum wage to be too high rather than too low?we should be generous instead of stingy.
Instead of increasing the minimum wage, we need to work towards decreasing the cost of living.
@z zz Those things don't coexist very well. When you raise wages landlords will raise rents on their tenants, and then the price of goods also increase.
@@CalebFrezza Not true because rinse have been skyrocketing and the minimum wage is still the same
@@JohnJacobGarza Minimum wage isn't the only thing that affects the cost of living, it's just one thing. Rents could easily be skyrocketing because of other factors such as increased property taxes, utility fees/taxes, regulation compliance costs, skilled worker wages (especially in union areas where specialized labor costs are generally high), transportation costs to get goods to the area, etc.
@@CalebFrezza low interest on mortgages and savings have a much larger impact, its been low since the financial crisis and it means everyone can borrow more and offer more money for their houses. The 2 straightforward solutions are building more (increase supply) or slowly increase interest agian (reduce demand).
How? Decreasing minimum like decreasing the price of goods? It can also mean shrinking the economy
Summary:
I) Historical perspective: Economists feared that raising minimum wage would lead to job losses. Their belief was premised on the fundamental economic theory that increase in price (i.e. increase in wages) would lead to reduction in demand (i.e. reduced employment uptake/lower working hours/job loss).
II) Empirical verification: Krueger and Card, in their cross-State comparison between Pennsylvania and New Jersey found that the rise in minimum wage in New Jersey did not slow down its equivalent employment rate vis-à-vis Pennsylvania. So done debate? No!
III) Contradictory empirical evidence: There are multiple research papers that have arrived at contradictory conclusions. Some based on aggregated data have concluded that minimum wage meant loss of working hours , while others found that less working hours at one place did not mean that people were not taking up other jobs elsewhere.
ISOLATING THE IMPACT OF HIKE IN MINIMUM WAGE IS DIFFICULT.
IV) Suggestions: The methodology of enhancing minimum wage has to be empirically backed through research + be nuanced (different states may require different approaches + different sectors of the economy may require different minimum wages).
TAKE AWAY: Be more empirical, less theoretical.
So unions should be setting minimum wages, not the state.
Real take away - because it is difficult to measure effect, do not touch it and inflation will make it irrelevant anyway. Case closed unfortunately
@@anthavio
On difficulty of measuring effect: I agree with you. At least at the stage of policy framing, governments should be careful of measures whose impact may be ineffective at best and counter-productive at worst.
On inflation wiping off the benefits of a wage hike: Two things: low interest rates have not really translated into high inflation (usual expectation). Moreover, inflation can be controlled by improving supply chains and enhancing production (easier said than done).
@@jonathanrajan3439 unions logic: "we want more money"
Hostess (cupcake company): "we can't do that unless we close down some warehouses and factories"
Unions after the wage increase: "my job got closed down"
@@jonathanrajan3439 try to be more "empirically" up to date with information please that study was done four years ago and Seattle, Washington is another prime example of job loss as a result of wage increase
I just glad it comes back to policy debates, not petty things like twitwars and namecalling (though we still reeling with those) they're useless and unproductive, can we agree on that?
Agreed
Policy debates? You’re delusional if you think there are legitimate policy debates going on in DC.
No, that's not a debate
@@robroy7456 I think they jist meant these videos are more interesting than analyzing EVERY SINGLE word out of Trump's mouth
The video doesn't take into account price inflation, so it's very flawed.
I have a hard time understanding state/federal set minimum wage. With strong unions in Sweden we have negotiable minimum wages set in individual job sektors/markets. I am very confident that this makes sure that wages are set to what the market, for that particular sector, can agree on and that salaries increase at a rate that that market can support. By having a state set minimum wage it is too easy for employers to just enforce minimum wage without any debate, leading to higher than appropriate salaries for some jobs and too low for other. I understand that this system right now would be devastating for some countries with low to no unionzsation. It worries me though, that the EU is pushing for a EU set minimum wage since that would break down the systems, like Sweden's, that today function for both the employer and the employee, taking into account the market. Union-driven salaries would, in my opinion, make sure that wages stay closer to the market. Unionzsation doesn't break a functioning market as long as it is regulated.
I believe taxation policy should be revised in order to make impact, smth like tax on activity in particular industry, not a profit tax or VAT as they are easily avoided. f ex if amazon makes billions it should pay tripple of minimum wage. even dabate wouldnot be needed. why company can make loss on interest payments or bad contracts but not on workers.
But private sector unions in the US aren't really as powerful as they were decades ago and are the weakest they've been in years. I doubt workers have enough bargaining power to negotiate those market based salaries.Also the states are the ones that tend to set and increase minimum wage anyway
Two different countries with systems that won’t work with the conditions in the others. Try to think next time and get away from simplistic thinking.
@@Agtsmirnoff and that's why I said that our system wouldn't work in some countries so of course the US shouldn't all of a sudden adapt union-driven salaries. The problem though is that the US system doesn't work right now, neither for employers nor employees, so some reform has to be done. Other countries have better ways to mange state set minimum wage that could inspire a functioning US system.
if the wage set by union negotiation is basically what the market can/would do, than what is the point of a minimum wage instead of simply letting each employer and employee negotiate by themselves?
Joe Biden on $15 min: "I'M GONNA GET IT DONE". Let us see if that promise is anything more than an election year gimmick.
The only things in his way are Joe Manchin and the filibuster. If he can get all 50 Democrats to vote to overturn the filibuster we can get a lot of really important legislation passed.
Ask all those Georgia voters about that $2000 check that went out immediately after they voted in those two democrat senators.......oh, wait......
It takes a fool to believe politician's rethoric...
@@SuperMovieLvr933 yeah you would like that wouldn't you rainbow warrior
@ facts
In Alberta Canada, they raised it to 15 CAD/hour. And our part timers lost hours and when some people quit, they wouldn't replace them
The problem is economists ignore half the equation, they focus only on the demand and supply of labor, and forget that people with higher wages spend more
The standard of living in every class of people has rose including the lower class. The lower class is richer than the middle class a couple decades ago.
By increasing wages you increase prices/costs.
Keep minimum wage close to inflation otherwise a large majority and their families will be priced out of the market. Australia has a $19.84 minimum wage (for adults) and we are doing just fine
Simple as that
@@icemike1 yes it is
@@jlrob85 yes 👍
You’re only doing fine because China has been fueling your economy through natural resources purchases
Yep aussie here too works perfectly fine.. denmark, sweden and Switzerland also have high minimum wages. If you give money to those poorest they will spend it stimulating the economy and keeping others in jobs...
“Some economists still fear a federal minimum wage is too high to handle, and will lead to job losses” hmm whaddya think the economists at the Economist think
Take care of your people, your people will take care of you.
...PEOPLE PUT THEM IN AND ...PEOPLE CAN TAKE THEM OUT.
Make America great again
Fun fact Norway doesnt have a minimum wage we have a Tripartite system which means that both corporations and workers have unions
Yeah that only works if you have active worker's union. US has opposite of this.
Reagan neutered American labor unions in the 80's, only 10% of US workers are unionized. It's bad. People here are so brainwashed that people who currently make around $15 an hour are complaining about the minimum wage being raised, not realizing it will give them negotiating power with their employers if they and their co-workers collectively bargain (they don't even have to start a union which is ridiculously difficult here bc of draconian laws)
@Exanimationes Incidamus Not really. If you don't pay the federally mandated minimum wage you violate the law, thus can be prosecuted by the government. You aren't prosecuted if you don't listen to the unions, because they aren't a government-ran programm. The worst that can happen in countries without minimum wage is that the worker/workers that feels underpayed can leave the company. This motivates the company to pay their workers the highest wage they can if they want to sustain work of that particular worker. Unions and federally mandated laws are very different.
@@resugram_YT It only works well if you have a workers and corporation union, that are neutral 3rd parties.
Unions also,forced every big manufacturer to leave anerica and killed millions of jobs. So congrats on supporting that.
answer: kinda... we don’t know
answer: This video pretends we don't know. But we do know. Companies could afford to pay over $20 per hour ( in todays money ) back in the late 60s. No reason why we can't keep up with inflation and cost of living. No reason why a company has a right to exist to the point of paying their workers starvation wages. If your business can't compete unless its wages are starvation wages, then the free market says you should go bye bye.
@@Dennzer1 You conveniently forget that the vast majority of people arent employed by companies? The average small business has nowhere near the amount of wage capability that companies do
Minimum wage or not, a person doing a full-time job should be able to feed him/herself at the place they live in. Insurance, housing, food, commuting, reasonable amount of entertainment.
What if their job is entry level? Like a dishwasher or a janitor?
@@sharvenkevin1699 That should not matter. Contributing to society is what is important, and entry level workers are the backbone to our country.
Besides, nobody, regardless of education or work experience, should have to worry about keeping a roof over their head or food on the table. We are a first world country. How are they expected to climb up if they have to prioritize work over other things, such as furthering their education? They cant.
@@abcdefghijk6752 That seems horrible. So what is the solution?
@@sharvenkevin1699 mandate a living wage in the constitution.
@@scifirealism5943 But if you mandate a living wage, prices will still go up to deal with the rising costs of labour. Then, we'll be back at square one.
It’s almost as if the government could guarantee its citizens healthcare that wasn’t tied to our employers (because that shouldn’t matter in the first place), allowing our employers the ability to pay us more...
Like in Europe, Canada, Australia and New Zealand
And where is the Government going to get the money to pay for that guaranteed healthcare. Will they just plant a few more fields of those magical money trees? Or should those healthcare workers all be placed in chains as Slaves?
The people that fight this get insurance from their employers.
Which would than go to the government to pay for that healthcare resulting in the same base line.
@@draconusspiritus1037 they have the money already. You pay enough in insurance.... big pharma just needs regulation
A successful and financial free life is not anchored to a minimum wage.
The difference between average people and achieving people is their perception of and response to failure." invest today and have your money work for you while you go asleep.
lol...of course yes, i give all accolades to sir Elton's expert service over the years. His strategies and portfolio has helped me secure a lot in business, and I'm so open to more capital gains with him.
Investment are stepping stones for success...the best thing that should be on every wise individuals list at this point is investing into different streams of income that does not depend on the economic scrutiny of any nation. and only the coined can survive this.
The best thing that should be on every wise individuals list is diversifying into different streams of income that does not depend on the economic scrutiny of that nation.
@@ina-Marine902 Nice platform i must say, i have just been telling everyone how he(sir Elton) gave me a ray of hope after i thought i had lost it all, now i have not only learnt how to use signals but also how to make market analysis.
This is why I like the Swedish model, the people affected fight it out and politicians try to stay out of it
Yeah but they still make laws that benefit certain groups over others. People are perfectly capable of deciding for themselves if a wage is high enough for them. In the US, I am perfectly willing to learn a trade for below minimum wage but the government has taken that choice away from me. Government should stay out of so many things. Health care was just fine until socialist shitwits intervened. Now it is expensive and government has seen fit to intervene again and is just making it all worse.
The folks who complain about what happened to "Made in America" and the same people who care more about profits than Americans.
Made In America (for not enough to live on).
the economist = globalists
You evidence is your own antidotal experience or is there is a poll,study, survey you can cite because I think you’re making it up.
@@robroy7456 You must not have seen or read about the countless articles about America outsourcing the manufacturing of products. Most are interviews with someone of wealthy standing and cover many issues except the struggle of the working class. I forgot his name but there was recently someone who promised to bring back manufacturing and "made in America". He started a trade war that raised the price of these outsourced products and then gave tax cuts to the rich.
@@thaigerstyle that's not entirely true. There's small businesses starting up in America to try to keep manufacturing jobs alive in the country, corporate fat cats be wasted. Check out All American Clothing and Redland Cotton.
If you can't pay more, try 4-day work week.
Why stop there? Make it a 1-day week. And pay $800/hour.
How is your proposed 4-day work week going to work out for businesses open 7 days a week? Should McDonald’s and Burger King close Fri, Sat, and Sun? Should the police and fire dept and utility companies shut down and stay home 3 days a week?
States should set minimum wages according to their economic conditions and poverty level. This is not a federal issue.
Why should a worker in one state be paid less than another for the same work, just because poverty averages in that state may be different?
@@lunaucprobably7487 Cost of living, people are paid different for the same work in different states all the time.
yeah, but the issue is when you have extremely gerrymandered red states that think you should exploit workers without limits (weird to say this being a libertarian but it's true), and end then asking the federal govt for food stamps, public housing, etc. With huge amounts of poverty and in need of aid
@@kilougi You are no Libertarian. Libertarians believe in the free market, we don't believe in a minimum wage. It's because it's illogical. Libertarians have a foundation of knowledge in economics.
Workers are not being exploited. You have to understand prices/costs are set by supply and demand whether inflation has kept up or not. So when you increases wages you increase prices/costs. Increasing wages doesn't increase resources. For example, if we have 100 cows the cost of milk would be immense. How can 100 cows give 320 million people milk? A gallon of milk can be a 100 dollars. Saying "INCREASE WAGES SO WE CAN AFFORD IT!!!" is just childish thinking because that won't make 100 million cows appear on our lawns. Resources won't magically appear. So the milk will rise even higher in price to offset this. This is why raising minimum wage and artificially raising wages in general is terrible. Also, it devalues everyone's bank account since those dollars you currently have are worth much less now.
Saying workers in America are being exploited is ridiculous on even more levels. Our lower class is the upper class of the world. Our lower class is richer than our middle class a couple decades ago. Our standard of living is rising in every class of people including those in "poverty". Keep in mind how rich you are is determined by your standard of living. Washington creates the upper, middle, and lower class. They randomly defined poverty, there's no set definition. Tomorrow you can wake up and they say "any household making below 500k a year is now in poverty" and that will throw about 99 percent of people in poverty over night.
@@bane3991 momme is calling you kid, time to go to sleep. Let the grown up talk
As someone who struggled through apprenticeships to get into the market I'd like to ask if minimum wage has an impact on the increased difficulty of entering the labour market? It's possible that, even though minimum wage might not increase unemployment on pepper, it incentivises employers to get labour through schemes that allow them not to pay minimum wage and are actually worse than regular employment. Zero hour contracts could also be another byproduct of minimum wage
Why would zero hour contracts be due to a higher minimum wage? They’re about increased flexibility to meet higher/lower demands, but a higher minimum wage would also increase payments for zero hour contract employers.
Yes. Lol even internship is competitive enough
In Maryland, we have 2 diff. Minimum wages. Montgomery county is $14/hr and the rest is $10/hr.
Interesting, I'd love to have seen how that impacts equality. I'd imagine it's bad in one way or another but maybe it's something I'll need to look up.
@@dylreesYT kinda the same in Illinois Chicago is $13.50 a hr but just outside anywhere else it's $8.50
Why not raise them both to $24 and then everyone can just be rich? Easy...right?
@@koboldhelper only $24? That's not much of an increase for the median household. I'm thinking more like $51 (the one is to represent 2021). Then in 2022, it can be increased to $62 and just keep it going like that until everyone in a billionaire like Jeff Bezos and Elon Musk.
India's priminister, Modi, a few years ago promised a toilet in every home. I shall run for president and my slogan shall be "A space company for all" so Musk, Bezos and Branson don't feel so special.
If min wage should exist, it should be implemented in a decentralized manner (locally or by unions). Not every industry/location will see the same monopsony power the video mentions. Diff costs of living vary geographically. Painting a broad brush with a federal min wage can affect locations and industries differently.
Wealth is a function of your investment not your salary
Most intelligent words I've heard
Crypto is the new gold
Two years from now you will look back and say I'm glad I started trading
People are afraid of investing because of the high rate of scam in the business
I wanted to trade Crypto but got discouraged by the fluctuations in price
Can you please put these essentials in a playlist so we can go through them?
you can make ur own playlist..
They didn't mention one important detail about the Card and Kreuger study - although employment was not negatively affected in NJ, prices in fast food restaurants did go up.
Win-win
All prices went up. They always do when wages go up. Basic concept.
@@kathyyoung1774mostly prices where workers earned minimum wage, that doesn't affect employees salaries in executive positions.
@@ozymandias8523 True. It affects prices and potentially profits. Since no reasonable company is going to just lose money or settle for less profit with each pay raise, they have to raise prices, which wipes out the extra buying power of the minimum-wage earners but also negatively affects everybody else, too, --- those of us who are SKILLED workers, as opposed to UNSKILLED minimum-wage earners. Those of us who didn't get raises when minimun-wage earners did.
How about instead setting a maximum ratio of CEO pay to lowest pay in the company. For example, a CEO of a company cannot earn more than 100x the lowest paid worker in the company (including stock options). Keeps CEO pay in check, while likely raising the lowest earner's salaries. Kills two birds with one stone.
Wont work. CEO's needs a lot of money to pay assets such as rent, equipment, and marketing. The main issue are the franchisers refusing to employ more if the business is fast pace.
@@Mitaka-Asa CEOs don't use their personal incomes to fund the companies operations, and if they do then the CEO is being payed beyond what the company can reasonably afford.
In theory this sounds great, but in practice this doesn't really work. Recently read about how a company to avoid this taxation, just rehired their lowest employees as contractors to avoid paying the tax. There will always be a workaround unfortunately.
that sounds like a really bad idea you would basically accelerate automation by like 1000%, and people would think twice (more like 10 times) about starting a revolutionary company in the US, and even worse it doesn't even work, I can think of like 10 loopholes, why not just hire another company that is responsible for those workers so that low paid workers don't affect your fat paycheck. In fact, that already happens in companies like Nike and Apple, when they just hire Chinese companies to run human meat working machines so they can make big stacks. The sad reality is that there is no easy answer.
@@happypt2929 thats not gonna dissuade someone from starting a revolutionary company. If the CEO payed all his workers 15 an hour he would be entitled to up to 1500 an hour. If you're not content with 1500 an hour you've got something wrong with you
You guys need to do something called MATH! If you make $15 an hour you and work full time, you only make about $600 before TAXES! Depending on which state you live in, they will take most of your money. For example if you live in NYC would only take home about 491.09 after taxes every 2 weeks. You only make about $982.18 every month. Which isn’t even enough for rent in many parts of the country.
What do you think full time is?🤣🤣
@@joshlopez9056 anything more than 30 hours week is usually considered full time work
Great video and analytical look at the discussion
Plain and simple: If I have less, I spend less. If I have more I spend more.
Plain and simple: If minimum wage doubled, employer labor costs double, and prices double. Rampant inflation. Worker pays more taxes, too, and gains nothing.
@@kathyyoung1774 it doesn't need to double, it does need to rise to a certain number that is sustainable. Don't let the myth of higher wages means companies raise prices, companies will raise them regardless. However the dollar amount matters little it's the hours that mean just as much. Sure 20$ an hour is great, but if you only get one hour it's pointless.
@@GravaticBurst If you think raising wages does not result in raising prices, you don't understand economics. There is no such thing as a "sustainable" number. $15 an hour is MORE than double the current $7.25, and many Democrats are insisting it should be raised to $25 or $30. THEY don't understand economics either! When wages rise, prices have to rise. Companies normally do not raise prices unless they have to, because of competition. Each has calculated what they have to charge to meet their costs and make a calculated profit. They cannot double salaries, wipe out their profit, and stay in business. That's basic.
Based on your logic, if the rent is too expensive, then I should be homeless? If the food is too expensive, then I should be hungry?
I've been alive for a while now and I've seen the minimum wage go up many times and I have seen exactly what happens although people don't seem to be paying attention. Yes there are some job losses ....not as large as what people think... however what's more likely to happen is in order to pay the higher wage of an employee , the price of products that that company produce go up ....when that goes up other jobs around them also start paying more as well because face it no one's going to Weld if they can push a broom for the same amount of money. In short raising the minimum wage is like throwing a rock into a pond it makes a few ripples but later on it all even out... the poor still wind up poor ...the rich still wind up rich ...and the middle class are still midel class. All at higher wages. So someone who made 7.25 an hour can buy a nice steak for 7.25..... but once they make 15.00 and hour.. the same steak cost 15.00.
A higher tide raises all boats.
Increases in the minimum wage havent led to that high of inflation and rises in cost for products..
Also prices rise, because higher wages raise employer costs, and that cancels out the wage gain while increasing inflation. Minimum wage workers need to get more job skills to be worth more , not just yell that they need more money.
@@kathyyoung1774 employees need to stop having people work 10 to 15 hours a day for low wages that's the problem. Hate capitalism. Since 15 dollar minum wage passed I own my own business
@@starone2737 People who have any job skills don't work 10-15 hours a day for low wages. If someone can learn your job in a day, you surely aren't worth $15 an hour! Minimum wage of $15 doesn't enable you to own a business. It breaks businesses.
Try to find ANY country in which Socialism has worked.
@@kathyyoung1774 that's where your wrong there's many people in even high skill jobs being exploited by there bosses for there time and money. I worked as a plumber and barback for a restaurant made my boss 30000 dollars in sales for one day alone. And he decided to lower my wage. I had to quit and threatened to rob him in order for him to pay the money he owed me. Many people have capitalized off the 15 dollar minumum wage like myself. Your just angry because everyone is going to be of equal class and many European countries pay above the minum wage and they doing just fine. Nobody believing your bs.
Hi The economist your information , deep insight is awesome. Also your graphics is too 👌👌
Take a state like Georgia and implement a $15/hour minimum wage there for four years. Analyze the results after that time period and see what happened. If it works well, then implement it at the federal level. If it fails, then don't. We need a law that says any controversial federal bill needs to be enacted in the bill sponsor's home state for 2 or 4 years before it becomes national. That will contain a lot of unintended consequences.
Companys mught move away from Georgia.
@@sepmeulders3163 they might. And that my friend would be known as an unintended consequence. It's something politicians rarely consider when drafting their bills.
That is not necessarily a functional approach, unfortunately. Any implementations in the real world has to interact in the real world, and that means that there will be significant data contamination. There are a lot of potential changes that, if made on a federal level, would function completely differently in comparison to state level. Certain things you *need* to test on the same scale as it will be implemented on to get useful data.
Sadly, it would most likely work very well in Metro Atlanta; and perhaps some other areas like Macon and Savannah.
Everywhere else in the state, it would probably destroy more jobs than it creates. :( Too many low margin businesses that are just trying to get by paying what they can.
@@brymht precisely. If it doesn't work well everywhere, then they need to rethink the law. By testing it out in a smaller sample of the population, the damage, if any, can be contained and remedied.
Can you please give a clip explaining about Bitcon & Pay Pal profits forcast amidst this situation ??! Thank you lovely clip .
Bean counters know how to make money.
You increase the wage. The employee numbers decrease. Automation will start at much faster pace.
Increase minimum wage (cost to employer) results in higher prices, of course. So the unskilled worker loses. The solution is to get more job skills and education and leave the minimum wage jobs (entry level jobs) to teens and beginning workers. It’s outrageous to be 40 years old, have no job skills, and demand $15 an hour. That’s more than I made teaching math with a masters degree (I.e., WITH job skills!).
Automation is inevitable though, what's gonnna happen when companies go to that point anyways?
In Philippines, there is a minimum wage, but when I started working, I was able to get a job with less than the minimum wage. It enabled me to break the fears that I have as a fresh grad and understand being an employee. When I transferred to the a better company and paying job, I already have experience being on the work place and there are less adjustments I have to overcome. I don't think that minimum wage is working because not every business adheres to it. Because if they do, they will not be able to hire employees.
My experience. Im 39 yrs old. Coming from an electrician which is a labor intensive job. I make somewhat of a decent living but every time minimum wage goes up, which I feel causes the price of living to go up. My pay stays the same. I put in the time to learn a trade to have a better life. How is that fair to someone like me and everybody else that experience's the same thing?
Who's stopping you for asking for a raise? Or getting a different job that pays better? It's what you're asking minimum wage workers to do right? Besides, if you work for an organization that doesn't increase your wage with inflation (2 percent annual increase for example), then perhaps you should find a job that does. The only difference between them and you is their wages aren't enough to survive on. I mean, you are asking minimum wage workers to get better jobs to avoid poverty, so to keep your stature as "better than the minimum wage workers," you can also do that by finding a different job. And in your situation, if your wage stays the same, you won't be able to survive off it either when inflation reaches that point. Which is the root of the problem, the wealthy people simply hoarding money and making it difficult for you AND them. Eventually it will just be the 1 percent and everyone else if wages continually drop further and further into poverty wages. So don't get angry at minimum wage workers. They want to live and work and if they can't afford to do so, they'll become unemployed and your taxes will have to increase to pay for them on welfare because we know the 1 percent doesn't pay taxes. So... Yeah... Your choice.
@@jrcrules And you do realize that minimum wage causes inflation, right?
It'd be useful to see a more in-depth analysis about the impact of minimum wage increases in South Korea. I read that after the 16% increase of 2018, a substantial number of low-income jobs evaporated, which led to meagre increases for the next two years.
They weren't really trying to make a case for lowering min wage, simply cherry picking a narrow example (ignoring several other economic factors) to make a weak case for raising it.
Awesome video as always. I appreciate the work your team puts in to make these
"Despite the wage going up in New Jersey, employment actually increased."
What about the cost of living and prices? I'll bet that increased too.
In regards to cost-push inflation, this is unlikely to happen as empirical data findings evidence that the cost can be shared on such a large scale that the result on the consumer is negligible, take Denmarks Mcdonalds for instance, where workers are paid $22/hr and the price of a big mac differs from the USA by mere cents. In regards to demand-pull inflation, this inflation is a sign of a healthy economy and can be lowered by monetary policy such as highering interest rates to lower demand. And finally, regarding housing prices as a part of the cost of living, these prices are actually influenced more heavily by other factors than inflation and as such the result is negligible once again, this can be seen by how house prices have risen by 40% since 2009 whilst the minimum wage has had no change since that equal date.
Of course! When the minimum wage is increased, ALL prices rise because employers have to pay more, have higher costs. That is a basic concept few people seem to get.
Historically this has happened in a ratio of 0.36:10 ratio of goods increase to wage increase. You could raise the wage by 100% and would only see a 3.6% change in goods.
They're increasing regardless.
@@Aelcroyou forgot the cost of living there and high taxes.
What we need are employers who are willing and capable to pay said minimum wages at full time hours, and still profit and grow. Odds are most are "capable," but little to none are "willing" though. Think it's about time for new entrepreneurs to step up and pick up the workforce the big boys and girls are leaving behind for automation? 🤔
Better than minimum wage is enforcing laws that prevent businesses from making excessive profits blowing cost of living out of the water ( In the US this is: Anti-Trust, Profiteering, Racketeering ). If profits are not overinflated by greed then pay is more than enough to cover cost of living.
Does employment fall or are less productive workers substituted for more productive workers? As wages increase, more people, higher productive ones that would benefit least, are are drawn to those jobs. They then replace many minorities, low educated, etc.
People who get education and job skills make more money. Uneducated, unskilled workers don’t. The solution is NOT to pay more to the unskilled. They need to get more skills and be worth more.
For me personally as a business owner, I just won’t hire anymore maybe only 1 person who works 2x as hard
Someone capable of such productivity isn't going to settle for something like that. And if a business owner stopped hiring employees there is a high chance of bankruptcy depending on the industry. Things are far more complicated than you make it sound.
@@ttt5205 nah with my business I’ll go to China and buy their kiosk/robots. 😂
That is what small owners will all do. You either get employees who will work their fingers to the bone constantly or replace them with robots where possible. More people will be jobless then ever before XD.
@@ttt5205 *illegal immigrant has entered the chat* 😁 “I’ll do both there jobs for half!”
@@celiafrostborn We have minimum wages in Norway and strong unions that work to prevent this kind of exploitation of workers. Despite this small businesses thrive in Norway.
4:07 does not explain the other half of the supply/demand equation.
5:10 then uses the fact wages were artificially low to explain why you can raise wages. Actually if there was “freer” competition then this would’ve resolved itself.
And just for some final balance to the video... where’s the comparison in skills to wages? & Demand for skill vs wages in those areas? If you can’t contribute something of value, why should you earn $15 (or whatever)?
The biggest issue in the USA is the difference betweens urban/rural regions. Fifteen bucks an hour is not a lot of money in San Francisco or Seattle. Go to rural Kentucky or Mississippi and jack the minimum wage up to fifteen an hour. You are turning their economy on its head.
Thanks, The Economist. I had been wondering about this for a while but was unsatisfied by the incomplete answers I found. This is by far the best, most comprehensive explanation I've seen. 💯👌 👍👍 I will sleep easier tonight knowing I finally understand the answer to this question. 🙌
They didn’t answer the question...literally at the end they basically said “it’s complicated, we’re not sure”
@@Agtsmirnoff That is exactly the answer I was looking for. Now I know what we know 😌. We don't know.
Which is to say, we know a lot, but it's complicated. Sometimes, my friend, reality is complicated. If you want to truly understand something, then open your mind and breathe in The Truth. 🌬🧠 Whatever That Truth May Be.
@@Agtsmirnoff vastly complex socio-economic questions like this rarely have a clear-cut answer. The analysis always has to be nuanced and full of caveats. This video is not meant to lead to a clear conclusion, but to do a deep dive into the various aspects of the question.
I like your emojis
Where can I find a transcript for this?
Why does Joe Biden want the minimum Federal wage to be $15 an hour? Why not $14? Or $16? How did he come up with that specific number? As the article points out, we should base a decision like this on empirical data.
I think minimum wages should be set by industry and adjusted for cost of living for that region and inflation. A federal minimum wage is not a great idea imo. The USA is way to big and diverse to follow one system.
A minimum wage tied to inflation undoubtedly is essential though
@@memphisstef3808 Agreed
The minimum wage should be abolished
You're assuming that a federal minimum wage is required to be a static number, it's actually not. They could very easily make it a formula that's tied to both inflation and cost of living so the number would be different depending on location.
Underemployment is a serious problem that isn't looked at hard enough, nor is it brought to people's attention enough by the media
Trust me, next couple of years we'll hear from media about this subject a lot! We are living in very interesting times. main thing we all make it through it safe and well.
@@IIII...... that doesn't make sense. If you pay people low wages, they can't afford to live.
@@IIII...... you said the homeless population will decrease. If people can not afford to pay for housing due to being on such a low income. How will they afford a home? I'm not talking about being rich, I'm talking about being able to afford rent, bills, food and clothing.
@@IIII...... I'm not from the USA. I am from the UK. Here, when people get paid minimum wage they can't afford to pay for rent, bills, car expenses, food. I am surprised no one taught you to have understanding and empathy towards those who have been delt an unfortunate hand in this life, maybe they should have taught you that in school between your economics classes.
@@IIII...... you are right, but you know what don't waste your time, people will never understand and they will blame capitalism.
This video took me back to the courses in my junior year of university.
The wealthy elite are the single greatest strain on the economy. Ending poverty and putting the money back into the hands of middle class means putting money back into circulation. This also has the added affect of a naturally declining population because more people choose to live their lives in a far less fear-based-conservative manner. People start to spend time in other pursuits like invention, craftsmanship, philosophy, and art. People simply have more time to pursue a higher standard of living for humanity.
Exactly what we need more of, artists and philosophers, who haven't contributed anything important to society for half a century.
If a rising tide raises all boats, then maybe tie min. wage to the median wage of a handful of states. If it was set at 50% of the average median wage of the bottom 20% of states, it'd be about $11.30/hr.
Quite like the idea of that
But if you tie it to the bottom 20% then that leaves 80% of workers out in the cold. That makes no sense. Make it aggregate or it will always be inherently unfair to some.
@@PhokenKuul as the poorest 20% of states get richer, the minimum wage would increase. If for example Arkansas outgrew Maine then it wouldn't increase based on AK's growth but ME's growth. If it was based on 50% median wage of all of America then poorer states like Arkansas would lose it's comparative advantage compared to a middling state like Iowa and would disproportionately increase inflation hurting those on lower incomes.
The US is simply too big to have a sweeping minimum wage like Spain, for example. There's completely different economies with vast inequalities.
But at the same time, maybe you're right. Maybe it would be better in aggregate/individually. There just needs to be more research.
@@dylreesYT That was my thoughts on picking the lowest quintile of states. The resultant wage is a compromise minimum that can be ever-changing with the median wage and states at the bottom. Glad you picked up on that.
@@doug1124816 Yeah, haha. That's why I said I liked the idea xd In Singapore, they follow something slightly similar in which each year a government body works with businesses to increase workers pay by the increase in productivity. That's only possible because a lot (if not all/most) of people in Singapore are part of a trade/labour union.
A federal minimum wage system could work in a similar way by measuring economic output as you say. Even I think increasing minimum wage by double is a bad idea, especially when it's part of an evil plan by Amazon (they increased pay to $15 for all workers, their competitors are surviving by having lower wage costs and Amazon surviving on investor money. By making their minimum wage $15, it boosted political support but if the federal minimum wage is put to that then their competitors will struggle massively and increase Amazon dominance. An evil genius plan, although obviously just a theory since they would never confirm such a thing). I like the idea of matching to the peak from the 60s and then increasing with inflation but your idea seems more economically fair ;P
Because for our governments, maintaining an ever growing gap between rich and poor is more important.
yes. Unfair distribution.
me, at 5:28 being happy about the results, seeing that there was 4 whole minutes left for things to go wrong: -__-
What makes this worse is that it costs $1500 just to rent a two sometimes one bedroom apartment! This is a real problem! Rents should be lowered if you can't get a decent wage!
Rent will go up when people earn more.
@@clam4597 Prices of goods will go up with labor costs increase.
Sandra here seems to have forgotten that rent isn't meant to be flexible based on my personal situation. They're also forgetting that there's sometimes 6 bedroom apartments in some places. Sometimes 4 bedroom apartments exist and are great while being pretty cheap. My 1 bedroom I live in currently is under $700/month with utilities. My friends live in apartments with room mates and their rent + utilities has decreased to under $400. Granted, we are around 2 developing cities in my state, but you don't *need* to live in a city, do you?
@@dominat0r3600 Where i lived it was 2000
@@jhostintola3092 have you tried moving to a not so high cost of living place?
@@dominat0r3600 Business's should if they cant afford labor costs
how about letting the free market find the fair wage?
Free market does not care about "fair" :) it only cares about maximizing the bottom line
@@user-gc1wj8tt2p a minimum wage is needed for skilled workers so when they enter the workforce out of college or training thy can get that minimum wage, believe it or not but there are somepeople that are untrainable the only job they can hold is one that pays 4$ an hour.... by having a minimum wage laws for these low skilled workers immediately drives them out of the labor market
You sound like a greedy capitalist!
@@DavidEVogel and no body like greedy capitalist.
@Ryan Alex Great! That would be more jobs for me.
Advertisement after only 1 minute???? Seriously?
Welcome to TH-cam. It'll only get worse 👍
Well they need to earn their money somehow
"Yet decades of research has lead to a rethink". Can you point to some of the research? I would be interested to look at it myself. Normally the links to the sources cited in the piece would be in the comments; perhaps this channel could do that in the future. Thanks.
Regardless of opinion. The Govt should never set market wages.
No such thing as a free market.
Most workers have too little bargaining power.
We are small family restaurant business, I can’t imagine how can we survive with $15hr minimum wage except rising menu prices,cut portions largely which maybe really the deadly end of our decades of our restaurant business.
More people with expendable income means more people will come to your restaurant, why is it so hard to comprehend?
@@australienski6687 Higher minimum wage doesn't equate to more people with expendable income though. The bulk of the increase will goto the people living paycheck to paycheck who, by the way, will have to pay more for a lot of things because the increase in labor costs isn't going to be absorbed by the businesses it is going to be passed right on to consumers.
@@australienski6687 Not that simple.
Oh? Instead having no one that could afford to eat in your restaurant?
@@nfspbarrister5681 obviously people can afford it since they’ve been in business due decades. Nice straw man though.
Which link is the Inflation in the USA, Federal minimum wage chart?
FINALLY SOMONE WITH A BRAIN
Very disappointed that The Economist did not mention any of the studies showing that Kruger and Card's 1992 study had various methodology problems that invalidate its results.
This video is exceptional. Information pure and simple. This is why The Economist is an institute of its own.
The video never talks about increased prices due to more expensive labour. That should play a role in the equation I believe
... And an increase in spendable income, thus an increase in an individual's consumption/purchasing, generally a more active and healthy economy. I don't see the issue here. The video seems to just assume all the workers are stuffing their earnings under their mattress or something.
@@drshabink You’re right. I didn’t mean it as a negative side-effect, but it is definitely a thing and it is just totally overlooked in the video
@@drshabink It just changes the distribution of income between capital and labour it doesn’t necessarily change total spending. It might mean more purchases of big macs and less purchases of factory equipment
Prices skyrocket, of course, because labor costs to employers skyrocket. This is such a basic concept, but unskilled workers who want more money can’t seem to understand that! They act like they think prices won’t rise, but they will have twice as much money.
Raising salaries even if it means lowering working hours as the 2015 study found still means higher hourly value of labor. Means that you can still get a satisfactory amount of money and spare some hours to...live! Or in any other case do what it seems many people did - get a second job, since you now have the time to do so, and get more money. It's up to personal priorities. The value is in the freedom of choice!
or, they got the 2nd job because their first job was no longer providing enough to pay their needs...
@@brianbates212 which still translates to more hours and higher hourly labor value.
Raising labor costs raises prices, so there is no net gain for workers.
How do you see having to get a second job as a plus?
Up the minimum wage and prices go up but the increase in wage doesn’t match.
Minimum wage should be a percentage tied to living costs X 1.15 not a fixed number , so people can slowly stop falling and get ahead.
While we are on the topic, why don’t we discuss ‘maximum wage’?
Nothing called maximum wage no onecan control that , that is depend on your hirer argument and your value
US: raises minimum wage
China, Vietnam, Combodia..etc.: stonk
i am 17 and i live in new york with the minimum wage of $15/hr, I have been to other states and the price of food is way higher here in new york, and finding a jobs here is very very hard here compare to other state because the employer here wants to employ less and only employ the skilled workers (even at mcdonald). It took many tries from different places to finally find a job and sometimes, i just wish there is a wage that is under $15/hr so that it is easier get employed for summer
you politicians need to educate yourself first before you decided how our economy should run, plz don't mess with something you dont understand...
Nice video.
Other things remain constant Increase in minimum wage can also have an impact in inflation... Cost pull inflation
Nice video!! Nevertheless, businesses and investment are the easiest way to make money irrespective of which party makes it to the oval office.
I invested in both stock and crypto but currently I believe crypto is doing more better
Crypto is new gold
I think it’s a valid argument that the market is doing exceedingly well too for this week a relative to it’s past
Crypto is the future
Trading crypto has become a lucrative way of making money
Effect of a higher minimum of wage depends on the price elasticity of demand. For wages this is a very complex thing and what affects it the most isn't wage but ease of outsourcing. After that you have productivity.
In times of economic upturn (time, when the economy is steaming hot), there is usually(as a result) a lack of labor, thus the wages go up( employers must compete for available workers, hence have to pay more or they will go elsewhwere))...and there is no lower demand for anything...just the opposite! (what economic models do we talk about @ 1:26/9:31 ???? )
The median hourly wage in California is $20. The median hourly wage in West Virginia is $14. A $15 an hour minimum wage will have dramatically impacts in different parts of the country.
no it will impact both, it will rise the median hourly wages in cali into 25 range and raise west virgina into 20
@notyuu well yeah, thats exactly the kinda thing that will drive up wages for you too. If you can get similar money for less demanding work then your employer will have to pay you more or they won't be able to staff their buisness.
@notyuu Thats pretty condescending my guy 😅 Not if minimum wage is tied to inflation, then it'll just rise as prices do and still represent the same proportionate amount of wealth
@notyuu I get you, greed tends to lead to difficult problems. I just happen to believe that we can design systems to counter it. One example is child labour laws, they were pretty effective preventing rich greed from exploiting the working class in at least one way.
I would think that having an inflation based minimum wage would similarly reduce the ability of the rich to exploit the poor.
The Economist needs Thomas Sowell, he will set them straight
They showed the views of Thomas Sowell in the beginning. Old perfect competition labor markets. That's what the new studies showed to be wrong.
Wahington DC, Seattle, and California have some of the highest minimum wages, highest cost of living, and the most homeless... hmmm
Finally a video that provides both sides of the argument
heck, we have decades of information about the minimum wage and jobs. Even without the info from the study of neighboring states should have shown it. We have not had significant drops in employment from wage increases
Prices rise because rise in wages increases employer costs! So everybody loses. They solution is to get more job skills. Minimum wage jobs are unskilled labor and should be entry level jobs, not lifetime jobs. If you are flipping burgers or mopping floors your whole life, you have NO skills and aren’t worth more than $7.25 an hour because anybody can learn your job in a day or two.
@@kathyyoung1774 Hahahahhaha. Employers are firing highly skilled workers to cut costs, not paying them more. Also, "Unskilled Labor" is a VERY specific job title, and sure as heck don't pay minimum wage. Look it up on indeed, using those words. BTW, those jobs weren't considered "starting" jobs until the late 70's/early 80's when idiots like you started fighting to stop min wage increases. Adults were doing them for ages. Then newspapers stopped hiring teens to deliver papers, and started hiring adults who could do bigger routes in vehicles.
Additionally, your argument falls apart when you realize that many companies, when the min wage goes up, do a wage freeze on people already working for them.
Finally, when it was implemented, the minimum wage was supposed to be the minimum LIVABLE wage, regardless of job
@@jonathanwessner3456 Yes, they have to let people go when costs rise. No, "unskilled" labor is any job/person with no skills. English language. If all you know how to do is mop a floor or clean a motel room, then you are indeed needed, but there is no reason to pay you what a college educated skilled worker makes. I never fought minimum wage increases until now. But $15 an hour is absurd for no skills. Those jobs are entry level jobs that should have a great turnover. Young people. People who want to make a living wage (which should be everybody!) need to get skills and learn jobs above that level and move on, not stay at mopping floors for 50 years while complaining about their salary. Nobody has ever been guaranteed a "LIVABLE WAGE." The idea was to stabilize a post-depression economy and create a MINIMUM standard of living. What that is varies from person to person. You can live on minimum wage but not if you choose to have 6 kids and buy a new car and a big screen TV and an iPhone. Then you need to get more skills and a better job.
@@kathyyoung1774 The rest of your post is just you doubling down on your lack of knowledge. When the minimum wage goes up, ALL pay should go up. I work a skilled job, I make well over min wage. If minimum wage goes up, my pay goes up. So should yours.
People who used to mop floors actually used to be paid very well. Clean a motel room? Are you sure you could do that? Especially 20 rooms in a set amount of time so the boss can rent them out again?
Most of the jobs you think are unskilled require more skills than you think. Most of them also require dealing with people like you, who probably gets upset if they forget to leave off the onions on your fast food, because YOU are mor eimportant than the other 20 people they are cooking for at that time.
Tell you what, PROVE your point, Get one of those jobs you claim is "unskilled"
I wonder if that minimum wage increase referenced in this video lead to an increase in revenue for fast food restaurants.
Typically, if you give poor people more money, they spend it. This has the potential to create more jobs.
If you give wealthy people more money they invest it. Sometimes this creates jobs. Other times it simply leads to higher prices for stock, real estate and commodities.
Only problem being inflation will likely pick up, where spending power will be negated by price rises (for basic goods and services). But as inflation is a way for a hugely indebted county like the US to get out of trouble, maybe that's the intention.
So trickle economics?
@@herrop great reply.
If productivity grows at equal (or faster) rate than the growth of demand, then inflation won’t be a problem.
The growth in demand from a higher minimum wage would typically be higher demand for mass produced items. These items can be more efficiently made than bespoke items a billionaire might purchase (Eg a Picasso painting).
Selling more of some products might even make them cheaper because the fixed costs can be divided across more sales.
If you increase labor costs, you increase all prices and taxes, of course! Make the minimum wage $15, and a Big Mac will cost $10. Milk will be $9 a gallon. Rent will double. Gas will double. All prices will double, and you will have no net gain but will pay more taxes. Get more job skills, and you can make more money. A minimum wage job is an entry level job, not meant to be a lifetime job!
@@kathyyoung1774 Inflation does not work like that a Big Mac is not going to go up that much it may go up a $1 or 2. There are not enough higher paying jobs for everyone to move up to. You obviously know nothing about economics.
My boss makes $150,000 a month, He has around 6 employees , each work 40 hours a week or less. He pays everyone $14 an hour, and he thinks that’s too much ! After overhead, salary, and taxes , he clears $90,000 a month or more, and he don’t even give out bonuses but want us to push sales ! This is the new America 🇺🇸
thats most companies lol, why do you think lots of companies are making record profits?
Get rid of the welfare system and see what happens all these unemployable people and wages are too high for them to be worth hiring. Wages need to be lower to get these people working.
There were major problems with Card and Krueger's paper that the video doesn't address. There is also a paper that focused on the same scenario, but used non-survey data and found a negative employment response. Its an important paper, but I feel nobody provides context when they bring it up.
Do you have a link?
@@immanuelt613 weird I replied to you. Did it get deleted?
In Canada, we raised our minimum wage to 15 dollars an hour all across the provinces. Inflation? No. Nothing happened. Rent is still the same. Grocery cost hasn't gone up at all. It still costs the same to enjoy things that people used to do. For countries like USA, who claim one of the wealthiest nations on earth and still has minimum wage that low, is almost a crime.
Well the unemployment rate in Canada is actually higher. So that's just one metric and the price of goods has certainly increased so I think you need some data to back up your beliefs.
Prices do go up. I knew someone who worked at Wendy's and their menus got updated with new prices the same week that min wages go up.
Now I'm not saying I disagree or agree with minimum wages, but let's just not jump to thinking costs won't get absorbed somewhere.
I think those who live in Canada need to do some actual research on algorithms and how those correlate with cost of living and reminder we are in the early stages of AI which will either help or hinder but given that currently how our corrupt system works it does NOT bode well.
@@sleepy.bunneh You do realise one anecdote at Wendy’s doesn’t really mean much compared to the actual inflation rate of goods and services across the whole country?
Say I'm an employer willing to hire someone for 15 dollars an hour to clean glasses, make and serve drinks.
Someone applies for the job but doesn't know how to make drinks, I would hire him for 7 dollars an hour (current minimum wage) to clean glasses and serve drinks, and I could hire another person for 7 or 8 dollars an hour for making drinks.
But say now the government tells me I have to pay a 15 dollars an hour minimum wage. That means I will only hire the most experienced employee for doing all 3 things instead of giving a job to 2 people. The one who doesn't know how to make drinks could have even learned how to do it on the job. Now noone will hire him for 15 dollars an hour because they can get more skilled people for that much. Unemployment rises for the most vulnerable sector, the ones with less skills, which are also the poorest. Inequality keeps rising...
How dare you use logic to prove a point. You could be offending somebody.
In my first student job in Frankfurt I earned 15 Euros per hour. And it was barely enough to pay my bills. I lived probably in a cheapest shared flat in a dorm, paid just 9 percent taxes since I was a student, ate at reduced prices at uni cafeteria and had to pay less for public transport. I am just wondering how can anyone survive on this while paying much more taxes, pension contribution (which I consider to be a tax, I would rather invest it myself) and way more costs for health insurance. I did work part-time, but still even if I worked full time and got the same pay, I would probably never have an opportunity to travel or to raise children or have even a smallest apartment even in 50 years. Minimum wage of 10 $ is really a joke.
No one can afford it. That's why 140 million people in America are in poverty.
THERE IS NO WAY THAT A WORKING PERSON SHOULD EARN ENOUGH MONEY TO BE COMFORTABLE! NO WAY CAN WE EXPECT THAT IN THE UNITED STATES EVER AGAIN! Happiness and comfort are only for high achievers..
At some point robots and automated solutions become less expensive. Let’s ask this question: why do some very successful economies like Switzerland have NO minimum wage?
Maybe you don’t understand Switzerland?
That is an interesting question. If 90% of countries do have a minimum wage, what are those other 10% doing? What other ways are there to make sure workers can afford necessities, and how do things like socialized medicine and a stronger welfare state compare with minimum wage in terms of how they affect the economy? People always seem to argue from ideological positions as either for or against *all* forms of wealth redistribution, and don't often discuss how different strategies stack up against each other.
That is due to the unions the same happens in Denmark. Balance is the key
@@krumble104 educate us then. That’s all I’m asking Bloomberg to do
Automated solutions will be cheaper regardless of how low the minimum wage is as humans can't compete with robots when it comes to repetitive tasks.
Call center jobs are exported to countries where they get paid $3/hr and they're still in the process of automating such jobs because it's even cheaper to those companies than paying $3/hr.
Automation will happen regardless of minimum wage increases or not.
Henry Ford’s reasoning was best. The people must be able to afford to buy what you are selling. Employers should not be burdened with health insurance. There should be national health care for all. More power to those whose jobs choose to give them extra health insurance. Takeaway, minimum wage should rise with inflation, like the rising tide that raises all boats.
Employers are against raising the minimum wage because it may reduce profits. Employers can trot out all their bought-off "experts" to "explain" why raising the minimum wage is a bad idea.
It would only be such a "large" increase because it hasn't been raised in over a decade.
I guess I might as well start investing in automation machines for my business. I've been thinking to do it for w while but now I guess it's the best time. Automate and outsource, thats the way to go baby.
Automation yes but no to outsourcing since outsourcing reduces the quality of product.
@@hbarudi Minimum wage can reduce quality of product.
I run a business, if the government increased the cost for labor by 2x I’d fire most of the employees and downsize the business. Which in return will hurt tf out of me because cvs Walmart and etc can afford to keep prices the same and pay more for labor. Minimum wage hurts small businesses and reduces competition for bigger corporations
Keep screaming mate, it will take time before you realize these people don't live in reality and are chasing a make believe utopia
I just won’t hire anyone anymore. I’ll continue to work for myself.
Great work guys, this is a journalism I haven't seen for a while! Thank you! Subscribed!
Aren't the States mentioned all dying States (of America), people are leaving them? And, I put myself through varsity pumping fuel on the forecourt, those jobs don't exist any more.