PragerUniversity asked:
What’s the perfect minimum wage: is it $10 an hour? $15? $20? How about zero? That’s right. Zero. While Congress discusses a minimum wage hike, economist David Henderson shows that any …
What’s the perfect minimum wage: is it $10 an hour? $15? $20? How about zero? That’s right. Zero. While Congress discusses a minimum wage hike, economist David Henderson shows that any …
anonymous surfer
Soooooooo the right min. wage is Slavery?
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2:02 LOL “well, you won’t get the job” aka “i’m a greedy asshole who needs
to make dem big profits so i’m not gonna hire you, fuck off”. What a slimy
video. #downvote
I’m Hot
0 minimum wage? That’s the dumbest idea I’ve ever heard. Please don’t
reproduce.
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Fascinating that lefties here in the comments section still cannot grasp
basic economic concepts.
mac
And yet the CEO-to-employee wage gap gets wider and wider every day…
Minimum wages can and should be raised; those funds have to come from the
stratospheric CEO and elite wages. Companies can still be as profitable
when cutting CEO salaries by at least half.
Meow
When the government sets an artificial “minimum wage” it forces more people
toward the true minimum wage — $0.00/hr.
In the video below economist David Henderson explains the problems that
arise from an artificial minimum wage and why $0.00 is the right minimum
wage.
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how about like we have in the uk different minimum wages for different
ages. also if the workers are paid more then the higher prices wont
affecthem. also im sure companies like mcdonalds arent going to struggle
paying higher wages
Hydros
ok and what about all the people who do have job experience but still will
only be paid minimum wage even if they stay with the company several years
and do an exceptional job. That is what is going on. It’s because the big
guy doesn’t want to give more then he has to. there are a lot of jobs out
there which are above fast food service and do require some skills which
only pay minimum wage just for that reason.
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But if there is no minimum wage, aren’t greedy employers going to exploit
workers? Isn’t that the point of a minimum wage?
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No minimum wage will further reduce the value of the human worker, and make
it harder for workers to make wages they can live on. Employers will be
able to find employees desperate enough to work for next to nothing such
that those that need to work for more to pay for their family won’t be able
to work for anything at all, and no longer have the money to maintain buy
food or shelter. It would be like outsourcing but within the country!
Christian
Just make the minimum wage $50/hr then everybody will be rich and happy.
See, problem solved.
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Yes but the productivity of US workers WAS going up, even when the wage
stayed stagnant or barely ticked upwards. I mean, even when the minimum
wage didn’t budge, workers didn’t get a sudden wage jump because their
productivity improved, and if accounting for inflation their wages actually
went down.
I don’t see how companies would fairly compensate their workers for their
productivity if there wasn’t a baseline that workers should at least be
paid. If everyone is hiring at 5 dollars an hour, even if the cost of bread
is $1 and gas is $3-4 a gallon, if all anyone will offer is 5/hour that’s
what they are gonna have to take for their unskilled, or slightly skilled,
labor.
socks proxy
If I wanted anymore bullshit I’d watch FOX NEWS.
Zero of COURSE supports businesses, but BUSINESSES don’t represent all the
people. A minimum wage supports the people. People will have MORE
DISPOSABLE INCOME to spend ON BUSINESS that the U.S. is dependent on
CONSUMPTION.
You need a balance of both Republican and Democrat ideas, so both sides get
what they want. Trying to take out the minimum wage would NEVER HAPPEN. No
one would agree to it, because so many PEOPLE are dependent on it rather
than a 1000 companies compared to 28 million people.
Businesses can already HIRE a COMPUTER ENGINEER in INDIA for practically a
$0.00 minimum wage instead of paying someone locally $60k.
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Demand for goods and services is the engine that drives the economy and not
businesses ability to profit as this video would like you to believe. You
can pay all workers an insanely low minimum wage and offer your products
at super deal prices, but if the people then don’t have the money to buy
your products, your company will fail nonetheless.
Furthermore, hiring new people is a company’s last resort to cope with
increased demand for their product. If the company can meet the demand
while paying it’s employees $X.00, it will not hire twice as many employees
if you allow it to pay them half $X.00.
Also, a company will make you work as hard as possible in order to increase
productivity regardless of whether you are payed $1.00/hour, $10.00/hour or
$20.00/hour; so this video is completely incorrect and borderline
propaganda.
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Jeremiah 22:13 KJV
Woe unto him that buildeth his house by unrighteousness, and his chambers
by wrong; that useth his neighbour’s service WITHOUT WAGES, and GIVETH HIM
NOT FOR HIS WORK.
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I think the content in this video is on the right track, but I’m tentative
about certain elements– but most of those are issues related to inflation,
which is a government sourced problem, rather than a business sourced
problem. I should be up front and say I’m not dismissing such issues with
what I’ll be writing from here, but I will be putting that to the
back-burner because it’s a problem which will be solved by different
questions than the minimum wage question.
There’s another point here that actually wasn’t brought up, which may very
well make the argument against a minimum wage (or at least for a minimum
wage low enough that not even employers will be actively looking to pay
“at” minimum wage) more compelling. Minimum wage is an interesting concept
being that it tells employers “we should pay most of our staff at this
rate.” This means that even if it’s a wage rate so low we’re looking at
“just” enough for one person to get by on their own– maybe with a single
child, maybe not– then we’re looking at a politically endorsed system
which tolerates extortionist wages. They can just hold up their hands and
put on an innocent face and say “Hey, the government says it’s acceptable.
If you’ve got a problem with that, take it up with them.” Without a minimum
wage, an employer has no political endorsement level to look to. What they
would need to do is negotiate pay with a prospective employee at the time
of hiring– an employee who has likely worked out their own cost of living,
because they need to to get by. This is a pretty compelling reason to
oppose the minimum wage.
But, for obvious reasons this actually doesn’t settle the issue. One could
just as easy go from my point to “and that’s precisely why we need a
minimum wage that is higher– so that people will have that kind of money,
whether they successfully negotiate with their employer or not!”
One of the other interesting points to bear in mind is Fordism, which
another comment-er (+MihaiRUdeRO ) brought up in another conversation on
this video. It’s important to note that Fordism doesn’t lead to “and that’s
why we need a high minimum wage!” but rather, more broadly, that “paying
employees well is really good for the economy.” One could just as easily
take as the upshot of this that “this is precisely why employers will pay
well even without a minimum wage, obviously.”
I guess what I’m getting at is that there’s an extent to which this is an
open question: will raising the minimum wage hurt employment rates? Will
cutting the minimum wage lead to extortionate pay rates? Given the plethora
of examples between things such as Australia and the examples cited in this
video, the answer seems to be “maybe, but not necessarily” to both
questions.
In many ways, this is a hard one because it depends upon many other
contingencies (one being the inflation issue which I put on the
back-burner),some of which being serious questions of:
1. Company profit margins and how minimum wage increases would affect
profit margins. (Suppose in Australia, profit margins were high so it
worked, but in the States they’re– theoretically– lower and so a minimum
wage increase wouldn’t work.)
2. Intelligence of prospective employees. (Someone pretty stupid might walk
into a job thinking they can get by on $2 an hour, for example. This brings
in that whole convoluted and difficult issue of the education system, which
I won’t address at great length here.)
3. Population size. (If you’ve got a population too big for employers to
employ anyways, how are questions of what to do about the minimum wage
going to have any impact whatsoever on employment rates– other than
perhaps making them worse than before, in the case of an increase? This
brings in the whole question of new businesses and entrepreneurship, and
how to get more “overall” employers into the market rather than just “jobs
from the already present employers.”)
4. Company willingness to export labour to third-world countries. (Really
patriotic company? Then, “dammit, we’re employing locals no matter the
cost!” Not so patriotic company? “You know, that minimum wage increase
doesn’t look good for profits. I’d rather not bump up prices and hurt the
consumer end of my business, so… Better start another factory in Brazil,
or maybe get something going in China.”)
There’s a lot of nuance to this issue to bear in mind, and honestly
speaking you can’t really just outright say one solution or the other is
universally an objectively superior solution. Perhaps there’s an
objectively superior solution “for America’s situation” or “for Australia’s
situation,” though. It doesn’t necessarily need to be the same solution.
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I’m starting to see the conservative strategy. Just give american’s the
advantages progressives want one at the time, then remove it when it fails.
And keep telling the american public that the think didn’t work at all
because it didn’t work here. Instead of looking at other countries where
the strategies work, because you need more than one thing at the time.
Increase minimum wage
get the youth to free higher education
increase taxes
And stop spending all your money on weapons
+ a little more, and the system will start working. look at an other
countries where it works ad just try to copy
u pull u save
Why do wealthy, conservative Christians fight so hard to keep US poor
people poor?
As an argument against this nonsense: Walmart. When the minimum wage goes
up, they are not going to hire fewer people. They are not going to cut
hours. They are not going to jeopardize their insanely profitable business
model because of slightly increased costs. Instead, they will do what they
have always done – pay the least amount to their employees that they can
legally get away with and continue to make billions in profit every year.
But that’s not the real issue. The issue is that you even care enough to
make this video. Perhaps some people will have their hours cut. But now
they make the same money for less work. And you cannot really demand
increases in productivity or cut training to a burger flipper. This is
unproven nonsense to justify bigotry.
Anti Spy
I like this. But it’s so hard to trust sleazy businesses. I work at a fast
food franchise for a year in high school before moving up in life. That
time was bullsh*t. Just by how they ran. 7 hours without a break. That’s
cool. Work hard and put up with that for $7.25.
vacation rentals
you seem to be confused … take a look at Ontario, Canada. minimum wage
there was frozen for 10 years, and yet prices were still going up, and
people were still loosing jobs/getting hours cut. it wasn’t until just
recently that minimum wage started to rise to meet the minimum amount
required to buy the basic human needs (food, water, shelter). If you think
that’s an exaggeration, your wrong. many people in the fast food industry
had to live with their co-workers so that they could afford both food, and
an apartment. minimum wage does not dictate prices, prices dictate minimum
wage.
pizza
Looking through the comment section I see one fascinating trend. Apparently
people are of the opinion that no minimum wage means you are FORCED to work
for free. This is just simply not true. It just means that your worth as a
worker is up for debate instead of being fixed at a number that most likely
doesn’t represent your true worth as an employee.
Example: You go to your local deli and ask for a job. “Sure”, says the
manager, “I’ll start you off working for free. I won’t pay you a dime.”.
“Wait a minute!”, you reply, “Why would I work for free? I would be
devoting time, energy and resources of my own in hopes of making a
living.”. The manager gets angry and says “You have no choice! I’m your
boss now! So get to work!”
This is what people are thinking would happen as seen in many comments with
their use of the word “slavery”, which implies that the worker has no
choice but to work and receives no compensation. But what would really
happen would be something more along the lines of this:
You walk into your neighborhood deli and approach the manager. “Hello, I
would like to apply for a job if you have a position open.”, you announce.
The manager responds “Well we do have one, but first, what kind of
experience do you have working? Have you a work history? Education
perhaps?”. You think for a second and reply “Sorry to say, this would be my
first job. However, I’m currently a senior in high school and working
toward my diploma.”. The manager takes a minute to consider what you have
said and says “I would have no problem hiring a determined young lad such
as yourself. How does $5 per hour sound starting out?”. To which you reply
“$5 seems maybe a bit low. Could I get you to raise it to, say, $8?”. The
manager looks at you and says “My boy, you have no experience working and
therefore it would not be appropriate to start you off at such a high wage.
But you have spirit and I admire that in a youth such as yourself. What say
I raise my offer to $6.50 and depending on your work, we’ll talk about
further increases in wage at a later date?”. This excites you! You humbly
agree to his terms and begin work the next day.
But what if you weren’t happy with his offer? Is he forcing you to start
anyway? Of course not! You’re free to refuse and search for another job, or
take him up on his offer and search for a better paying job while receiving
your paychecks from the deli.
fast mortgages
Lol.
“If words appear on screen in a kinetic motion while I say them… it makes
my garbage sound more legitimate”
The problem is the system is set up to reward positions, rather than actual
market place value. This becomes abundantly obvious when you look at
various bail outs. Huge bonuses to CEOs, while the employees that made the
Fondation work go un rewarded. If the minimum wage were 0 dollars, entry
level jobs would pay less than 7 dollars an hour, and everyone would need
to work 80 hour work weeks to scrape out a meager existence.
As technology advances, each employee has become more valuable Over the
years, but their pay has not. Well why not find a different place in that
sector that pays more? Because it doesn’t exist. Higher minimum wage puts
more money into the hands of consumers which then spend the money back into
the economy. The current structure encourages bonuses to CEOs, who then
store the capital, rather than spend it back into the economy. Sorry if
this doesn’t fit your narrative of the free economy balancing itself. A
free market would, but with bail outs that’s no longer what we have. A
significant number of companies should have gone under by this point
because they failed in the market. And instead of competition coming in
that could have paid higher wages to non execs, and reduced the wage gap,
the government just pooled more money into the existing hands, so nothing
could change.
When this happens, capitalism gets murdered. Even an online game (eve
online) has a better working free market. Corperations fail if they do not
adjust to the market. There are no hand outs, and people can earn what they
are worth. That can’t happen when multi million dollar corperations get
bailed out for failing.
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I hate when people deal in absolutes there needs to be a minimum wage
obviously, it just doesn’t need to be crazy high…
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The concept that we’re raising the wage without profit or productivity
going up (that he argues at 1:05) is blatantly false. Profit and
productivity have both gone up continuously for quite some time now. The
problem people have is that real wages haven’t kept up, so you have all
that extra profit going to less than .1% of the population (for the most
part) while the poor get poorer and poorer, and a wage inequality gap
widens more and more. Now obviously minimum wage isn’t the only reason for
this, but to say that it minimum wage shouldn’t exist, or that it somehow
hurts people, is ridiculous. Without a minimum wage and some level of
government intervention, you would have employers who say “This is how much
we’re offering, take it or leave it” and employees who take it because if
they don’t, they will starve and someone else will take the job. Add in
deregulation of business practices and dissolution of unions, and workers
rights would resemble something like slavery.