Daroff I literally cringed at that. I mean I make 13/hr but I’m not affected by mim wage? Wtf? If the mim wage was set lower or removed, my wage could easily be lowered as well!
@@johnappleseed8146 Are you serious, you moron? You wage is currently way above the minimum wage and you seriously believe that if a price floor that has no effect on you was removed, it would somehow lower your wage? I regret that imbeciles like you can vote.
@@EricRogstad Couldn't agree more with this analysis. Seems like Daroff made a valid criticism, DA REAL tried to agree with him by saying that aspect of the video made him cringe (me too bud), Daroff misunderstood, and then David Major shows up and is just an asshole. It's genuinely disheartening how many people are upvoting his toxic bullshit.
Who speaks for the Americans put out of work due to minimum wage? If you cannot produce whatever minimum wage dictates you have to within a hour, you cannot find employment. Such is the reason illegal workers have more employment opportunities that inner city poors who have inadequate education.
If a higher minimum wage (reasonable) equals more unemployment, couldn’t it be said that those jobs technically wouldn’t exist anyway because if they are that easy to eliminate they would have been regardless? Who employs a surplus of unnecessary labor?
Not really. If an employer valued a low-skilled worker’s wage to be worth $8 an hour and the worker thought that it was worth $7 an hour, they can both have a mutually beneficial transaction. But if the minimum wage was increased to $9 an hour, the employer would think that it’s not worth it and the worker will be fired.
The thing is, our economy doesn't operate at the intersection of the labor supply and demand curves. Rather, it operates well above that. Otherwise we'd have like 50% unemployment as opposed to the 5%-15% unemployment we usually hover around. This is why the minimum wage is necessary.
I'm already seeing this before minimum wage goes up. Every new retail store being built has double the number of automated check out lines. The thing that no one talks about is that small businesses can't afford the automation, so they will just have to shut their doors.
I understand this is a basic, entry level video but I would have liked for them to just acknowledge the possibility that increased minimum wage may show a return in increased productivity, reduced turnaround and, by virtue of the increased purchasing power of those benefited, actual economic growth that may offset any loss in demand created by the increase. Similarly, the idea of letting wages float may lead to a race to the bottom (i.e. who's willing to do it for less, which leads to outsourcing, use of undocumented workers, etc) which in turn may actually lead to unemployment. Finally, I worry that they also didn't acknowledge the social component of the issue (i.e., low minimum wages disproportionately affect marginalized groups and increase inequality). I'm not saying all these arguments are true, I just would have liked for them to be contemplated...
That isn't what the graph's are saying... Can you prove that with data? I think minimum wages are harmful because people who might be less specialized are left out in the labor surplus. Businesses, even more so small businesses, will not hire someone who is not specialized with the same wage as someone who is; it would not be reasonable economically spealing. Not to mention that unemployment increases with minimum wage because workers reduce in marginal utility; meaning they no longer generate utility to the business because you have to pay them more. In summary, you are speaking with your heart and the men on the video are teaching economics unbiased by feelings whatsoever. Facts are facts, no matter how upset you feel about them.
Minimum wage increases unemployment because those that produce less (in dollar terms) than whatever minimum wage is cannot be profitably employed. If you produce 10 dollars an hour worth of goods and services and minimum wage is 15, who do you think would employ you? You also say that allowing wages to 'float' would cause a race to the bottom, but I ask you this in return: is there no demand for labor? Are there no employers willing to pay a higher wage than competition to attract workers? Of course not. You can observe in daily life differences in pay between companies that require the same criterion for employment with varying pay. The company that pays less will naturally find it more difficult to find workers. What is to be done to correct this? According to you; nothing.
Agreed! Except for one thing: That the minimum wage only affects a small percentage of workers. In fact, those people who are currently making above minimum wage take it in the shorts when the minimum wage is increased. If they don't get a corresponding increase in their pay, they might just end up making minimum wage themselves for their previously higher value of skills and experience.
@@Nellywellum most companies raise wages by 0.50 c per year, it isn't a juicy raise per se. I worked in sales I know how corporations operate, there is no way to keep up with inflation, it is a waste of life to work minimum wage job. In Seattle even 100K annual income considered not enough, if you account for mortgage, food, and other expenses.
@@vkrgfan I have worked in the corporate headquarters of some of the largest companies in the country, and not in sales. I know very well how corporations work. Everyone is just trying to justify their job, and the easiest way to do that is by adopting LEAN and trying to "trim the fat".
There are other positive effects of raising the minimum wage: 1. More low to mid tier goods and services are bought, increasing the demand for laborers in the production of those goods and services. 2. Corporations that pay below a living wage have a harder time pricing out local and well paying businesses, preserving higher paying jobs overall in those sectors. 3. Less tax money is needed for programs such as food stamps and welfare. 4. Workers are less economically distressed, being able to more easily pay for goods and services beneficial to their health, productivity, savings, and ability to invest time and money into making their own businesses if desired.
1) There is no increase in demand for mid and low tier goods or services. The only thing you've done is cut off everyone whose skill value is below the minimum wage, which means they're not working which means they're not being productive to any producer and they're not making money themselves, which means LESS disposable income, not more. That actually decreases the demand of elastic products. 2) Corporations aren't inherently bad, so stop operating under that assumption. In that same vein of thought, monopolies are an entirely different animal that the series hasn't touched on yet. In regards to pricing out small businesses, raising the minimum wage doesn't actually impede large businesses from providing their goods or services, it just entices them to go for the non-worker options. Have you seen the sudden boom in self-order fast food kiosks in Seattle where they spiked the minimum wage? That's directly in response to telling them they had to pay unskilled labor more for work they can buy a machine to do for them. Furthermore, by raising minimum wage, you've increased the cost burden for labor on small businesses that probably don't have the standing funds to access the same technology/tools to avoid said cost burden, so you're putting them at an economic disadvantage compared to the corporations. 3) You've raised unemployment, so you have MORE people applying for food stamps, so you've increased the bill, not reduced it. 4) You've actually increased the stress on both the minimum wage worker, as well as any of the workers who were just above minimum wage, since you've basically demoted everyone between the previous minimum wage and the new minimum wage to minimum wage. You've cut their buying power when prices swing up to account for the new minimum wage- this is a reflection that price isn't just some X value, it's a measurement of productivity and usefulness to other people you're trading with. With that inevitable upswing in prices, you've also devalued the standing and collected wealth, so you're butchering the buying power of those on fixed incomes, such as unemployment and the retired. So really, you haven't done anything useful and hurt the most vulnerable portions of the population. If you want to actually help people, find a niche, start a business, and start employing people yourself, don't tell the people who are already providing opportunities to foot the bill for your idealistic "this is how it should be" kind of crap.
Minimum is not a product and so you can't sell it. The workers are the one selling their time for money. Isn't that correct? So wouldn't that technically mean the workers are the sellers and the owners are the buyers in this particular circumstance? Scratch that last comment. Sorry, you explained it.
In addition to Bryans' contribution, it also results into increased unemployment since more people will be interested to join the labour force but on the contrary firms find it expensive to maintain or recruit more workers which may force them to lay-off people especially in times of poor economic condition.
The logic here seems very straightforward. How would an economist -- or someone else familiar with basic supply and demand economics -- who is calling for a higher minimum wage respond to this argument? Would they say that the benefit to the employed minimum wage workers would outweigh the detriment to the unemployed?
+BRYAN351 I understand what's bad about the minimum wage. I'm asking about what a proponent of the minimum wage would say.
9 лет назад+2
+Andrew Hohne They might say: "Screw those rich corporations, we need to help the poor!" "How can people raise a family on only $7.25/hour (even though they aren't supposed to at that wage level)!?" "Capitalism sucks! People before profits! blah blah blah" You haven't seen any of these intellectually bankrupt comments tossed around before?
+BRYAN351 It is not IMMORAL. That's just nonsense. Business doesn't have morals. Or Feelings. Or Good or bad. It just has numbers. Your taking it personally. Think of it as math not as a person. The Math is that the design of a min. wage is in best interest of unskilled workers not in the businesses best interest. If they could get rid of the humans all together no wages business would be 100% efficient. Wages are negative in every aspect to businesses bottom line. Now what you have to do is equate the value of productivity VS wage. Most of the time a worker lowest paid is highest value. Low cost lots of production. The CEO the top executives are where the waste is. Look at it as a machine say you have 50 gears. But the one gear uses 300% more fuel then the others does it produce 300% more. No. It's the waste. It needs cut. Reduce it to maybe 20% and then maybe your talking a good balance if it makes the other gears operate more efficiently. But 300% is just fat that needs cut.
If true isn't the company robbing you if they are paying people below there value? As well isn't the CEO and Excs stealing from the company over pricing themselves. Unless they are getting sales or coming up with the ideas which most of the time there not. They are supervising transactions, organizing the work flow. But not creating wealth just maintenance. So paying themselves 300% more then the ground floor employee would be creating a flaw in a capitalism market. If truly capitalism then everything would be closer to balanced. The most valuable assets obtain the highest place and receive the best compensation. If you make sprockets and you have a person who makes 10,000 sprockets a day vs other people who make 5,000 then that person should be worth twice as much. If your in charge you might make 1 1/2 times. But not twice as much as the 10,000 sprockets. Cause they keep the business with supply. Now the Sales agent selling 10,000 sprockets also deserves that compensation because they allow the demand to be found and realized. But no CEO is worth 10 times let alone 300 times the value of the 10,000 sprocket builder or seller. In no scenario is that a good capitalist market. It's as bad as a Utopian system bound to fail. It will cause unbalance and the system will eventually try to balance its self through collapse or revolution. It's history. Happens all the time. What should be done then to prevent that?
+Andrew Hohne , the usual tactic seems to be to try to lean on a somewhat-murky empirical record to claim that the the effects are outweighed by other aspects of the minimum wage. One -- very suspect, in my opinion -- argument is to try to claim that the workers who are still employed will spend more, and thus make grow the economy overall. This argument doesn't seem logical to me, since it's clear that every additional dollar that is paid to a still-employed worker must be at least equally offset by decreased spending from other economic actors.
It's always fascinating how these people talk about minimum wage affecting very few people without acknowledging state minimum wages below $11 or $15--or whatever the number of the day is. It's just disingenuous.
Price ceiling first.... Look up. The equilibrium price is a couple stories above you. We're trying to get up those couple floors to the equilibrium, but the government built a ceiling above your head preventing you from getting up there. For example, rent control. Now price floor...Look down. The equilibrium price is a few stories below you. Try to get down those few floors to the equilibrium. Just one problem. The government has built a floor preventing you from going any lower. Example - state minimum price on agricultural products, like milk
Why not raise minimum wage to $100 if it did in actuality increase pay? It has not been minimum wages that have increased salaries, rather increased productivity that underpins wages. And thus anything that aims to increase wages and not output will invariably cause increases in unemployment. To answer the question above; almost all currently employed would no longer be.
a surplus is when the quantity supplied exceeds the quantity demanded. in other words, it's when the price is high and producers make a large supply, but consumers also don’t wanna buy it because the price is high. i think.
I think the minimum wage must be a significant reason for the rise of zero hours contracts in the UK. These people still need to work, but aren't skilled enough to be paid above min wage, and those contracts get around the problem.
@@maxwelltoshach8208 If it isn't worth it, then why would anyone buy the product, and why would people prefer taking the job over begging or living on the dole? Why does a young African choose to leave the village to recycle poisonous electronic waste for less than $1 a day? It's because it is the best option they have, and if you imposed a minimum wage, they would have no job at all.
@@MUSTASCH1O Just because something is the best option available to someone doesn't mean it's a _good_ option. In many cases, it means that they're in a situation that people shouldn't be in, and that society is at fault for allowing people to end up in such a situation.
@@maxwelltoshach8208 How would a minimum wage present any better opportunities to this person? Imposing a minimum wage does not increase opportunities for the poor, it only reduces them. I see no justification for minimum wage, especially if there is a already ample charity and tax funded welfare. If a community has failed to provide charity to this person (assuming the community even has a moral duty to do so), it makes no sense to then prevent them from finding work by forcing a wage at which they are not sustainably employable.
The video says that the quantity of labor under min wage is QD. Moreover, that labor goes to the high value buyers and comes from the low cost sellers. By what miracle does that happen, without market-determined prices? i.e, the minimum wage does much more damage than they say, and most of that damage is not "unemployment."
Wouldn't a large increase in the minimum wage just cause inflation? Businesses would just adjust their prices accordingly, and everything moves up in nominal value cost.
+Brett Anon (TheBrett) > Wouldn't a large increase in the minimum wage just cause inflation? No, because any increase in the minimum wage causes people to make less money.
+dante daniel Lane actually doesn't matter so much is he a good candidate so much is he viable for nomination and could he hold up to the pressure. I would be afraid he could not. In my opinion getting elected is a hard hard job. Look at the GOP. 11 people and thats just some. But will be down to 1 in say 2 more months. Thats some hard pressure. In Dem side it's easy. 2 candidates two different sides. The reg and the underdog. I'm voting underdog in that fight. People are getting pretty fed up. But big money has a lot of pull who know.
+Brett Anon (TheBrett) Not really, because inflation is purely a monetary phenomena. It's determined by the ratio of money in circulation to amount of good and services in an economy. Since raising the minimum wage doesn't increase the amount of money, it can't cause the general level of prices to increase. It is possible that a minimum wage could cause inflation to increase slightly, by contracting the size of the economy relative to the amount of money in circulation. However, that diffuse effect unlikely to substantially compensate for the increased costs in either magnitude or focus.
Some of the premises presented in these videos completely disregard other factors that make their charts far from representing reality. Here's an example: "Some subsequent studies have generally supported aspects of Krueger/Card. A 2004 study of available literature, “The Effect of Minimum Wage on Prices,” analyzed a wide variety of research on the impact of changes in the minimum wage. The paper, from the University of Leicester, found that firms tend to respond to minimum wage increases not by reducing production or employment, but by raising prices. Overall, price increases are modest: For example, a 10 percent increase in the minimum wage would increase food prices by no more than 4 percent and overall prices by no more than 0.4 percent, significantly less than the minimum-wage increase." from journalistsresource.org/studies/economics/inequality/the-effects-of-raising-the-minimum-wage
A change in the minimum wage affects all workers because without raising EVERYONE's wage proportionally, the higher paying jobs get devalued. Let's say minimum wage is $7.50. Someone making $15 an hour has a skill that is valued at twice as much as the minimum wage. If we raise the minimum wage to $10 an hour, the person who earns $15 an hour now has a skill that is only 50% more valuable than the minimum. If we raised the person making $15 an hour to $17.50, or the same raise the minimum wage earner got, the person making $17.50 would see his or her skills now worth only 75% more than the unskilled minimum. The $15 an hour worker would need to get a raise to $20 an hour to keep the same value for his/her skill. Workers making $22.50 before the minimum wage hike would need to now earn $30 an hour to keep their skill value from eroding.
We are supposed to have a raise in the minimum wage to reflect inflation. Imagine if people were still making 25 cents an hour in 2019?! What a lunatic.
Gold and silver are hedges against inflation and that is why the dollar needs to be backed by precious metals to protect the worker from the ravages of inflation (dollar devaluation through the expansion of the money supply )
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Considering that 77% of the job market are services, I'd say that more than a few teenagers are affected by the minimum wage.
Daroff I literally cringed at that. I mean I make 13/hr but I’m not affected by mim wage? Wtf? If the mim wage was set lower or removed, my wage could easily be lowered as well!
@@johnappleseed8146 The fuck are you even talking about? I never said that you aren't affected by the minimum wage.
@@johnappleseed8146
Are you serious, you moron? You wage is currently way above the minimum wage and you seriously believe that if a price floor that has no effect on you was removed, it would somehow lower your wage? I regret that imbeciles like you can vote.
@@DaroffApFire I think DA REAL meant to be agreeing with you and criticizing the video. Not criticizing what you said.
@@EricRogstad Couldn't agree more with this analysis. Seems like Daroff made a valid criticism, DA REAL tried to agree with him by saying that aspect of the video made him cringe (me too bud), Daroff misunderstood, and then David Major shows up and is just an asshole. It's genuinely disheartening how many people are upvoting his toxic bullshit.
''Price Floors: The Minimum Wage but everytime he says minimum wage, the video will speed up by 5%.''
701,000 Americans currently make minimum wage. This also does not include people who are paid service salaries - $2.13 per hour.
Who speaks for the Americans put out of work due to minimum wage? If you cannot produce whatever minimum wage dictates you have to within a hour, you cannot find employment. Such is the reason illegal workers have more employment opportunities that inner city poors who have inadequate education.
If a higher minimum wage (reasonable) equals more unemployment, couldn’t it be said that those jobs technically wouldn’t exist anyway because if they are that easy to eliminate they would have been regardless? Who employs a surplus of unnecessary labor?
Not necessarily its usually due to employers hiring workers that are better skilled, since yhere is a minimum worth of labor they have to adhere to
Not really. If an employer valued a low-skilled worker’s wage to be worth $8 an hour and the worker thought that it was worth $7 an hour, they can both have a mutually beneficial transaction.
But if the minimum wage was increased to $9 an hour, the employer would think that it’s not worth it and the worker will be fired.
The thing is, our economy doesn't operate at the intersection of the labor supply and demand curves. Rather, it operates well above that. Otherwise we'd have like 50% unemployment as opposed to the 5%-15% unemployment we usually hover around. This is why the minimum wage is necessary.
I'm already seeing this before minimum wage goes up. Every new retail store being built has double the number of automated check out lines. The thing that no one talks about is that small businesses can't afford the automation, so they will just have to shut their doors.
I understand this is a basic, entry level video but I would have liked for them to just acknowledge the possibility that increased minimum wage may show a return in increased productivity, reduced turnaround and, by virtue of the increased purchasing power of those benefited, actual economic growth that may offset any loss in demand created by the increase. Similarly, the idea of letting wages float may lead to a race to the bottom (i.e. who's willing to do it for less, which leads to outsourcing, use of undocumented workers, etc) which in turn may actually lead to unemployment. Finally, I worry that they also didn't acknowledge the social component of the issue (i.e., low minimum wages disproportionately affect marginalized groups and increase inequality). I'm not saying all these arguments are true, I just would have liked for them to be contemplated...
That isn't what the graph's are saying... Can you prove that with data? I think minimum wages are harmful because people who might be less specialized are left out in the labor surplus. Businesses, even more so small businesses, will not hire someone who is not specialized with the same wage as someone who is; it would not be reasonable economically spealing. Not to mention that unemployment increases with minimum wage because workers reduce in marginal utility; meaning they no longer generate utility to the business because you have to pay them more. In summary, you are speaking with your heart and the men on the video are teaching economics unbiased by feelings whatsoever.
Facts are facts, no matter how upset you feel about them.
Minimum wage increases unemployment because those that produce less (in dollar terms) than whatever minimum wage is cannot be profitably employed. If you produce 10 dollars an hour worth of goods and services and minimum wage is 15, who do you think would employ you? You also say that allowing wages to 'float' would cause a race to the bottom, but I ask you this in return: is there no demand for labor? Are there no employers willing to pay a higher wage than competition to attract workers? Of course not. You can observe in daily life differences in pay between companies that require the same criterion for employment with varying pay. The company that pays less will naturally find it more difficult to find workers. What is to be done to correct this? According to you; nothing.
Shut up, commie trash.
Agreed! Except for one thing: That the minimum wage only affects a small percentage of workers. In fact, those people who are currently making above minimum wage take it in the shorts when the minimum wage is increased. If they don't get a corresponding increase in their pay, they might just end up making minimum wage themselves for their previously higher value of skills and experience.
Incorrect. To remain competitive, companies have historically raised wages up the ladder. That's what happened when I was a kid working at petsmart.
@@Nellywellum most companies raise wages by 0.50 c per year, it isn't a juicy raise per se. I worked in sales I know how corporations operate, there is no way to keep up with inflation, it is a waste of life to work minimum wage job.
In Seattle even 100K annual income considered not enough, if you account for mortgage, food, and other expenses.
@@vkrgfan I have worked in the corporate headquarters of some of the largest companies in the country, and not in sales. I know very well how corporations work. Everyone is just trying to justify their job, and the easiest way to do that is by adopting LEAN and trying to "trim the fat".
@@vkrgfan but all of that is operating under the misapprehension that unending economic growth is possible.
@@vkrgfan The truth is that the top 1% of earners in this country take home 85% of income growth currently.
There are other positive effects of raising the minimum wage:
1. More low to mid tier goods and services are bought, increasing the demand for laborers in the production of those goods and services.
2. Corporations that pay below a living wage have a harder time pricing out local and well paying businesses, preserving higher paying jobs overall in those sectors.
3. Less tax money is needed for programs such as food stamps and welfare.
4. Workers are less economically distressed, being able to more easily pay for goods and services beneficial to their health, productivity, savings, and ability to invest time and money into making their own businesses if desired.
Hello! Can you please provide the logic behind these conclusions??
1) There is no increase in demand for mid and low tier goods or services. The only thing you've done is cut off everyone whose skill value is below the minimum wage, which means they're not working which means they're not being productive to any producer and they're not making money themselves, which means LESS disposable income, not more. That actually decreases the demand of elastic products.
2) Corporations aren't inherently bad, so stop operating under that assumption. In that same vein of thought, monopolies are an entirely different animal that the series hasn't touched on yet. In regards to pricing out small businesses, raising the minimum wage doesn't actually impede large businesses from providing their goods or services, it just entices them to go for the non-worker options. Have you seen the sudden boom in self-order fast food kiosks in Seattle where they spiked the minimum wage? That's directly in response to telling them they had to pay unskilled labor more for work they can buy a machine to do for them. Furthermore, by raising minimum wage, you've increased the cost burden for labor on small businesses that probably don't have the standing funds to access the same technology/tools to avoid said cost burden, so you're putting them at an economic disadvantage compared to the corporations.
3) You've raised unemployment, so you have MORE people applying for food stamps, so you've increased the bill, not reduced it.
4) You've actually increased the stress on both the minimum wage worker, as well as any of the workers who were just above minimum wage, since you've basically demoted everyone between the previous minimum wage and the new minimum wage to minimum wage. You've cut their buying power when prices swing up to account for the new minimum wage- this is a reflection that price isn't just some X value, it's a measurement of productivity and usefulness to other people you're trading with. With that inevitable upswing in prices, you've also devalued the standing and collected wealth, so you're butchering the buying power of those on fixed incomes, such as unemployment and the retired.
So really, you haven't done anything useful and hurt the most vulnerable portions of the population. If you want to actually help people, find a niche, start a business, and start employing people yourself, don't tell the people who are already providing opportunities to foot the bill for your idealistic "this is how it should be" kind of crap.
Nice explanation!
Minimum is not a product and so you can't sell it. The workers are the one selling their time for money. Isn't that correct? So wouldn't that technically mean the workers are the sellers and the owners are the buyers in this particular circumstance?
Scratch that last comment. Sorry, you explained it.
In addition to Bryans' contribution, it also results into increased unemployment since more people will be interested to join the labour force but on the contrary firms find it expensive to maintain or recruit more workers which may force them to lay-off people especially in times of poor economic condition.
5:25 The keyword there is "most."
The logic here seems very straightforward. How would an economist -- or someone else familiar with basic supply and demand economics -- who is calling for a higher minimum wage respond to this argument? Would they say that the benefit to the employed minimum wage workers would outweigh the detriment to the unemployed?
+BRYAN351 I understand what's bad about the minimum wage. I'm asking about what a proponent of the minimum wage would say.
+Andrew Hohne
They might say:
"Screw those rich corporations, we need to help the poor!"
"How can people raise a family on only $7.25/hour (even though they aren't supposed to at that wage level)!?"
"Capitalism sucks! People before profits! blah blah blah"
You haven't seen any of these intellectually bankrupt comments tossed around before?
+BRYAN351 It is not IMMORAL. That's just nonsense. Business doesn't have morals. Or Feelings. Or Good or bad. It just has numbers. Your taking it personally. Think of it as math not as a person.
The Math is that the design of a min. wage is in best interest of unskilled workers not in the businesses best interest. If they could get rid of the humans all together no wages business would be 100% efficient. Wages are negative in every aspect to businesses bottom line. Now what you have to do is equate the value of productivity VS wage. Most of the time a worker lowest paid is highest value. Low cost lots of production. The CEO the top executives are where the waste is. Look at it as a machine say you have 50 gears. But the one gear uses 300% more fuel then the others does it produce 300% more. No. It's the waste. It needs cut. Reduce it to maybe 20% and then maybe your talking a good balance if it makes the other gears operate more efficiently. But 300% is just fat that needs cut.
If true isn't the company robbing you if they are paying people below there value? As well isn't the CEO and Excs stealing from the company over pricing themselves. Unless they are getting sales or coming up with the ideas which most of the time there not. They are supervising transactions, organizing the work flow. But not creating wealth just maintenance. So paying themselves 300% more then the ground floor employee would be creating a flaw in a capitalism market. If truly capitalism then everything would be closer to balanced. The most valuable assets obtain the highest place and receive the best compensation. If you make sprockets and you have a person who makes 10,000 sprockets a day vs other people who make 5,000 then that person should be worth twice as much. If your in charge you might make 1 1/2 times. But not twice as much as the 10,000 sprockets. Cause they keep the business with supply. Now the Sales agent selling 10,000 sprockets also deserves that compensation because they allow the demand to be found and realized. But no CEO is worth 10 times let alone 300 times the value of the 10,000 sprocket builder or seller. In no scenario is that a good capitalist market. It's as bad as a Utopian system bound to fail. It will cause unbalance and the system will eventually try to balance its self through collapse or revolution. It's history. Happens all the time. What should be done then to prevent that?
+Andrew Hohne , the usual tactic seems to be to try to lean on a somewhat-murky empirical record to claim that the the effects are outweighed by other aspects of the minimum wage. One -- very suspect, in my opinion -- argument is to try to claim that the workers who are still employed will spend more, and thus make grow the economy overall. This argument doesn't seem logical to me, since it's clear that every additional dollar that is paid to a still-employed worker must be at least equally offset by decreased spending from other economic actors.
What about Turkey? where almost %50 of labors work by the minimum wage? Wouldn't a change in percentage play ''a big role'' in that ?
50% of people making under ten dollars an hour are under the age of 30. The other 50% is 31 and older.
You naive little misogynistic child
It's always fascinating how these people talk about minimum wage affecting very few people without acknowledging state minimum wages below $11 or $15--or whatever the number of the day is. It's just disingenuous.
I'm confused as to why price ceiling lies below the equilibrium whereas price floor above that?
Price ceiling first.... Look up. The equilibrium price is a couple stories above you. We're trying to get up those couple floors to the equilibrium, but the government built a ceiling above your head preventing you from getting up there. For example, rent control.
Now price floor...Look down. The equilibrium price is a few stories below you. Try to get down those few floors to the equilibrium. Just one problem. The government has built a floor preventing you from going any lower. Example - state minimum price on agricultural products, like milk
@@aaronpatalune4363 Your explanation is so helpful!
Price ceiling is a maximum price you can't go above, and price floor is a minimum price you can't go below.
Does your economic philosophy also endorse trickle down? We know that there are many factors that you are excluding.
How do you explain Germany having high employment yet high minimum wage? It is also very difficult to get fired in Germany, just like in France.
Why not raise minimum wage to $100 if it did in actuality increase pay? It has not been minimum wages that have increased salaries, rather increased productivity that underpins wages. And thus anything that aims to increase wages and not output will invariably cause increases in unemployment. To answer the question above; almost all currently employed would no longer be.
What is a surplus
a surplus is when the quantity supplied exceeds the quantity demanded. in other words, it's when the price is high and producers make a large supply, but consumers also don’t wanna buy it because the price is high. i think.
i feel like this video needs an update after 2020...
I think the minimum wage must be a significant reason for the rise of zero hours contracts in the UK. These people still need to work, but aren't skilled enough to be paid above min wage, and those contracts get around the problem.
If a job isn't important enough to pay someone minimum wage or above to do it, it's not important enough to hire someone for.
@@maxwelltoshach8208 If it isn't worth it, then why would anyone buy the product, and why would people prefer taking the job over begging or living on the dole?
Why does a young African choose to leave the village to recycle poisonous electronic waste for less than $1 a day? It's because it is the best option they have, and if you imposed a minimum wage, they would have no job at all.
@@MUSTASCH1O Just because something is the best option available to someone doesn't mean it's a _good_ option. In many cases, it means that they're in a situation that people shouldn't be in, and that society is at fault for allowing people to end up in such a situation.
@@maxwelltoshach8208 How would a minimum wage present any better opportunities to this person? Imposing a minimum wage does not increase opportunities for the poor, it only reduces them. I see no justification for minimum wage, especially if there is a already ample charity and tax funded welfare.
If a community has failed to provide charity to this person (assuming the community even has a moral duty to do so), it makes no sense to then prevent them from finding work by forcing a wage at which they are not sustainably employable.
@@MUSTASCH1O It doesn't matter how employable you are if the pay isn't enough to live on.
Minimum wage should 0.
Were supposed to be living in a free society.
good
This was 9 years ago . We’ve got robot 🤖 now . Regardless of min wage , unemployment rate increased . What’s the graph for robots
The video says that the quantity of labor under min wage is QD. Moreover, that labor goes to the high value buyers and comes from the low cost sellers. By what miracle does that happen, without market-determined prices? i.e, the minimum wage does much more damage than they say, and most of that damage is not "unemployment."
There are eight forms of capital. Fiat paper currency is only one form.
What are the other seven, and how are they relevant to this discussion?
Wouldn't a large increase in the minimum wage just cause inflation? Businesses would just adjust their prices accordingly, and everything moves up in nominal value cost.
+Brett Anon (TheBrett)
> Wouldn't a large increase in the minimum wage just cause inflation?
No, because any increase in the minimum wage causes people to make less money.
+dante daniel Lane actually doesn't matter so much is he a good candidate so much is he viable for nomination and could he hold up to the pressure. I would be afraid he could not. In my opinion getting elected is a hard hard job. Look at the GOP. 11 people and thats just some. But will be down to 1 in say 2 more months. Thats some hard pressure. In Dem side it's easy. 2 candidates two different sides. The reg and the underdog. I'm voting underdog in that fight. People are getting pretty fed up. But big money has a lot of pull who know.
+Brett Anon (TheBrett) Not really, because inflation is purely a monetary phenomena. It's determined by the ratio of money in circulation to amount of good and services in an economy. Since raising the minimum wage doesn't increase the amount of money, it can't cause the general level of prices to increase.
It is possible that a minimum wage could cause inflation to increase slightly, by contracting the size of the economy relative to the amount of money in circulation. However, that diffuse effect unlikely to substantially compensate for the increased costs in either magnitude or focus.
@@ElGeecho :Great reply .Wage increases are a result of inflation and not the cause
Some of the premises presented in these videos completely disregard other factors that make their charts far from representing reality. Here's an example:
"Some subsequent studies have generally supported aspects of Krueger/Card. A 2004 study of available literature, “The Effect of Minimum Wage on Prices,” analyzed a wide variety of research on the impact of changes in the minimum wage. The paper, from the University of Leicester, found that firms tend to respond to minimum wage increases not by reducing production or employment, but by raising prices. Overall, price increases are modest: For example, a 10 percent increase in the minimum wage would increase food prices by no more than 4 percent and overall prices by no more than 0.4 percent, significantly less than the minimum-wage increase." from journalistsresource.org/studies/economics/inequality/the-effects-of-raising-the-minimum-wage
Bullshit.
That's not even what your source says, you sack of trash.
@@davidmajor1508 It literally does? Why so volatile?
Proof that it does:
i.imgur.com/PK8TUXE.png
If what said is true than would that not deter capital investment seeing as the return therefrom would lessen?
20.6 million Americans currently make under $10.10 per hour.
A change in the minimum wage affects all workers because without raising EVERYONE's wage proportionally, the higher paying jobs get devalued. Let's say minimum wage is $7.50. Someone making $15 an hour has a skill that is valued at twice as much as the minimum wage. If we raise the minimum wage to $10 an hour, the person who earns $15 an hour now has a skill that is only 50% more valuable than the minimum. If we raised the person making $15 an hour to $17.50, or the same raise the minimum wage earner got, the person making $17.50 would see his or her skills now worth only 75% more than the unskilled minimum. The $15 an hour worker would need to get a raise to $20 an hour to keep the same value for his/her skill. Workers making $22.50 before the minimum wage hike would need to now earn $30 an hour to keep their skill value from eroding.
Minimum wage should be tied to inflation. That used to be agreed on across the isle.
There shouldn't even be a minimum wage.
@@davidmajor1508
He's too based for his own good!!
This aged terribly
Pride of lions... Hahaha
We are supposed to have a raise in the minimum wage to reflect inflation. Imagine if people were still making 25 cents an hour in 2019?! What a lunatic.
Gold and silver are hedges against inflation and that is why the dollar needs to be backed by precious metals to protect the worker from the ravages of inflation (dollar devaluation through the expansion of the money supply )
Minimum wage should be 0 so yeah increasing it proportionally with inflation is fine, it will still be 0. :D
Why is all I see Helen rose blurting her fat mouth absolutely everywhere
He should tell Biden what he's doing with his $15 minimum wage.