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A Fascinating Minimum-Wage Experiment Is About to Unfold

36 pointsby stillsutalmost 10 years ago

10 comments

jgmmoalmost 10 years ago
&quot;Support a $15 minimum wage, support the future!&quot; <a href="https:&#x2F;&#x2F;www.facebook.com&#x2F;Robots4MinimumWage" rel="nofollow">https:&#x2F;&#x2F;www.facebook.com&#x2F;Robots4MinimumWage</a>
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vfroggeralmost 10 years ago
A few years ago I actually read the experiment regarding the NJ fast food workers and the PA fast food workers shortly after NJ passed a minimum wage. I saw it consistently being brought up in conversations regarding minimum wage, which is very interesting to me for some reason.<p>So this is the report that was supposed to show that minimum wage increases don&#x27;t affect employment rate (infact, they actually might improve it), however, when you look at the data presented within the study itself, you find that indeed, the NJ employment rate seemed to increase, and the PA employment rate seemed to decrease slightly. However, when you look at the number of employees per fast food restaurant, you&#x27;ll see that the NJ restaurants started at a much lower number per restaurant than the PA restaurants, and then that employees per restaurant metric raises up by the end of the study but it never reaches the same number as the PA restaurants.<p>What that study actually seemed to show to me, is given the ample notice that business owners had about the minimum wage increase, they thinned out their workforce. Then the minimum wage increase came (the study actually started shortly after the increase had already been put in place, I believe), and the business owners realized they over thinned out the workforce, hired a few more people to get to the right number which was still less than the PA number with lower labor costs.<p>And since we don&#x27;t exist in a vacuum, once a business owner realizes their store in NJ can run on 18 people, why should they run their store in PA with 20? It could probably make due with 19.<p>However, no one ever brings up the point that per restaurant, NJ never had as many employees as PA, essentially stating that PA was using more employees to accomplish the same job as NJ, which is exactly what you would expect to happen from an increase in labor cost.<p>Instead, everyone only focuses on the jobs added&#x2F;lost during the short time of the study. It&#x27;s like I&#x27;m the only person in the world who actually looked at the data in the report, instead of just reading the author&#x27;s findings. Very Frustrating to consistently seeing this study shown as proof that minimum wage doesn&#x27;t affect employment numbers.
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mattsfreyalmost 10 years ago
Anybody consider the plight of the skilled laborer who invested time and potentially money into being more marketable and is making $15, who is now brought down to the level of people working menial unskilled jobs? Is this fair? You can almost certainly be sure nobody will be given raises to maintain wage parity.
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Mister_Snugglesalmost 10 years ago
For another minimum wage experiment, the newly elected NDP government in Alberta has also promised a $15&#x2F;hr minimum wage.<p><a href="http:&#x2F;&#x2F;globalnews.ca&#x2F;news&#x2F;2008258&#x2F;ndp-will-move-forward-on-15-minimum-wage-plans&#x2F;" rel="nofollow">http:&#x2F;&#x2F;globalnews.ca&#x2F;news&#x2F;2008258&#x2F;ndp-will-move-forward-on-1...</a><p>It sounds like we will have a number of similar experiments to compare with each other.
outside1234almost 10 years ago
I&#x27;m surprised that two other outcomes are not posited by this article:<p>1) Rise in inflation (this is ultimately going to hit the price of goods and services)<p>2) Rise in cash under the table employment. People already can&#x27;t afford union work - this seems to push even more people to &quot;hire the guy standing at the corner outside Home Depot&quot;.
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gscottalmost 10 years ago
Due to the excessive amounts of labor in the market especially at the low end there was never a reason employers would need to pay more other then retention for business stability reasons. The minimum wage is just a needed correction for this oversupply of labor otherwise the market would have corrected itself already. Republicans argue for no minimum wage so more low end positions can be created but it is unlikely we have the infrastructure to compete with China or to turn ourselves back into a 3rd world nation.
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dismal2almost 10 years ago
This debate would be a lot simpler if we just agreed to eat the poor.
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naturalethicalmost 10 years ago
The fascinating part will be the emergence of a larger black market for labor.
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MrZongle2almost 10 years ago
I look forward to spending $14 on a Big Mac in Los Angeles in 2020.
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xacaxulualmost 10 years ago
How should the market reward minimum skills or minimum investment into marketable skills, or minimum effort in the work place?