Economy 52,877 Posted October 17, 2014 Share Posted October 17, 2014 http://m.huffpost.com/us/entry/6002774 Fed chairwomen "Janet Yellen" is sounding the alarm that as inequality keeps rising, it could cripple the US recovery. Inequality is at the highest levels in many decades ----------------------------------- Personally i dont support raising taxes on the rich or just increasing welfare. You need entreprenership, business investment which higher taxes discourage and try to make people take jobs even if its not to their liking rather than offering more welfare. But the minimum wage in the US is too low for starters. I think $9/h to $10/h is more reasonable. Here in Canada most provinces are at around $11/h (roughly US $10) and its worked fine for us I also liked her suggestion of more free daycare. It would make it less burdensome for single parents trying to make a living, help those trying to go back to school, and encourage both parents to stay working rather than having one quit! Link to post Share on other sites More sharing options...
LeoFameMonster 1,592 Posted October 17, 2014 Share Posted October 17, 2014 FYI when minimum wage increases so does the cost of living. companies raise their prices because minimum wage goes up. Making 6 dollars and paying 1 dollar for bread is the same as making 10$ and $5 for bread. Link to post Share on other sites More sharing options...
Economy 52,877 Posted October 17, 2014 Author Share Posted October 17, 2014 FYI when minimum wage increases so does the cost of living. companies raise their prices because minimum wage goes up. Making 6 dollars and paying 1 dollar for bread is the same as making 10$ and $5 for bread. i think u mean to say $6 and paying $1 for bread is the same as $60 and $10 for bread. In one scenario bread costs only 1/6 of ur income while in ir second scenario it costs a wooping 1/2 Anyway if that was the case, the purchasing power of the minimum wagers would always stay constant but it doesnt Lemme try to explain: For one, labor costs dont make up 100% of operating costs. Theres taxes, energy, supplies etc. so labor costs rising 10% doesnt mean over-all operating costs would. They may only rise 5% This is especially true in a globalized economy where trade is a major factor. Rise in minimum wage wont make any difference on imports for instance Secondly the effect many argue gets dilluded the further up the chain you go... If minimum wage is $8/h and its gets raised to $10/h u just got a $2/h raise. But maybe someone making $14/h might only get raised $1/h if at all And someone making $20/h theres a good chance their employer wont even pay attention to a $2/h increase in minimum wage and that person wont get a raise period If minimum wage was the sole determiner of inflation, then we should have 0% inflation considering minimum wage hasnt been rising with the exeption of a few States but thats not the case Since inflation isnt proportional to the minimum wage hike, its worth it for low incomers but not high incomers. So its a form of equalizing :yes: Link to post Share on other sites More sharing options...
Nein 508 Posted October 18, 2014 Share Posted October 18, 2014 Oh my god Link to post Share on other sites More sharing options...
Echo 327 Posted October 19, 2014 Share Posted October 19, 2014 I already knew the wealth gap in the US is horrible. The 1% holds SO much of the U.S. wealth. I'm no socialist but that's a bit ridiculous. Link to post Share on other sites More sharing options...
Economy 52,877 Posted October 19, 2014 Author Share Posted October 19, 2014 I already knew the wealth gap in the US is horrible. The 1% holds SO much of the U.S. wealth. I'm no socialist but that's a bit ridiculous.same. Im not socialist either. I dont think taxing the hell out of the rich or regulating everything a lot or giving lots of free welfare is the answer. That always backfires, weakens the economy by reducing business investment, entreprenuership, or encouraging people to not work as hard. But minimum wage is rediculously low. In most developed Nations its higher than in the US. If the US raised it to $9/h that wouldnt kill businesses or stop them from hiring necessairy labor Also the idea of free or cheap day care would not only make it easier for working parents, but also encourage both parents to keep working and staying productive Theres things that can be done to help the people at the bottom without killing business Most of u guys know im right winged and conservative with my economic ideals. Im not very socialist at all. But i dont believe in taking Capitalism to an extreme either :shrug: Link to post Share on other sites More sharing options...
Gagaloo911 12,959 Posted October 21, 2014 Share Posted October 21, 2014 A $1-2 minimum wage hike is NOT going to help matters at all. With minimum wage as it is right now, one has to have 2 or even 3 FULL-TIME jobs just to be able to afford a 2 bedroom apartment in any major city in the US, and sometimes not even then if you're considering NYC or other major city hubs. An extra couple dollars an hour will in no way allow us to better afford the cost of living, especially considering raising the minimum wage will cut some jobs, and raise costs as well. Obviously this system isn't working, and income inequality is only getting worse. Meanwhile the elite and rich keep gaining most if not all the income increases, getting ever richer while the rest of us get poorer and poorer. It was during times when the rich were taxed higher that this country was booming, and the middle class was prospering and getting bigger. Right now the middle class is DISAPPEARING in this country as wages stagnate, costs rise and only the elite and those on top receive any income hikes, just FYI. Link to post Share on other sites More sharing options...
Economy 52,877 Posted October 22, 2014 Author Share Posted October 22, 2014 A $1-2 minimum wage hike is NOT going to help matters at all. With minimum wage as it is right now, one has to have 2 or even 3 FULL-TIME jobs just to be able to afford a 2 bedroom apartment in any major city in the US, and sometimes not even then if you're considering NYC or other major city hubs. An extra couple dollars an hour will in no way allow us to better afford the cost of living, especially considering raising the minimum wage will cut some jobs, and raise costs as well. Obviously this system isn't working, and income inequality is only getting worse. Meanwhile the elite and rich keep gaining most if not all the income increases, getting ever richer while the rest of us get poorer and poorer. It was during times when the rich were taxed higher that this country was booming, and the middle class was prospering and getting bigger. Right now the middle class is DISAPPEARING in this country as wages stagnate, costs rise and only the elite and those on top receive any income hikes, just FYI. this seems to be an issue in most of the developed world right now, 1 year before elections here in Canada theres basically 2 hot topics how we will spend the surpluses forecast to begin this year (some parties want tax cuts, other spending etc etc etc) the other major issue is tackling income inequality seeing as when u adjust for inflation, income here in Canada for the middle class has virtually stalled in the past 30 years Link to post Share on other sites More sharing options...
zexion_armando 241 Posted October 22, 2014 Share Posted October 22, 2014 ITs even funnier, cause even if minimum wage was pushed up, the work hours aren't there. Most places are only hiring part time, and actively discourage or punish people from going over that, to the point that if someone hits overtime, they are liable for punishment and termination. Took me 3 months since I lost my last job to find something that actually wasn't 20 hours a week, which no one but a person living with their parents could live on. Link to post Share on other sites More sharing options...
Economy 52,877 Posted October 22, 2014 Author Share Posted October 22, 2014 ITs even funnier, cause even if minimum wage was pushed up, the work hours aren't there. Most places are only hiring part time, and actively discourage or punish people from going over that, to the point that if someone hits overtime, they are liable for punishment and termination. Took me 3 months since I lost my last job to find something that actually wasn't 20 hours a week, which no one but a person living with their parents could live on. thats another issue Obamacare doesnt help the part-time issue tho, cuz now employers have yet another incentive to not give anyone over 30 hours (or 28 hours i forget which it was) because then they have to cover socialism to help the poor often backfires... thats why when your trying to help the poor or the middle class you have to be selective of which policies you put in. Some have major side-effects and arent even worth it at the same time Capitalism to an extreme can be bad too and i think we need to do a bit more to help the middle class. but tis hard to come up with policies that dont do as much as good Link to post Share on other sites More sharing options...
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