The debate for a higher minimum wage
By xeno-precept
@stasis (91)
United States
April 29, 2017 11:17pm CST
I used to be amongst the crowd of folks who believe higher wages should be reserved for more skilled workers. But my opinion has changed over the years, especially in light of current events.
Logically, we must consider that as time passes, what once was considered a living wage no longer qualifies as such. No one in today's economy can survive on a measly wage of $7.25 an hour. That's fine and dandy for high-school students, maybe, with no, or very little, financial burdens. But for adults and families trying to survive while being drowned in pointless debt, it's not enough.
My husband shared a meme the other day on Facebook and it made me wish others thought the same way -- basically, it's message was this: why are we so set on keeping others down? Why do we oppose a decent, living wage for entry-level workers? Doing so doesn't advance us in our positions, and it only achieves the purpose corporate overlords are after -- turning us against each other and creating sympathizers for corporate profit.
Listen, the CEO's of major companies don't care about you, the little guy. And yes, certain professions require a higher wage based on the required skillset. But we must also remember that entry-level workers are also doing the jobs other people don't want -- they're our fast food cooks, miners, field hands, etc. They're literally the backbone of this nation.
In addition, the buying power of currency is constantly changing, and therefore requires the adjustment of wages and taxes to reflect those fluctuations. For example, $6.00 in 1980 had the same purchasing power as $17.48 in 2016. It doesn't work the same in reverse, though -- $7.25 in 2016 had the same purchasing power as $2.49 in 1980! And I think we all know $2.49 an hour is a ridiculous exchange for our hard labor.
What are your thoughts?
5 people like this
6 responses
@scheng1 (24649)
• Singapore
30 Apr 17
Over here, we do not have minimum wage.
The government works around this issue by subsidizing the wages of the poor.
We have a scheme known as the "Workfare". That means as long as your salary is below a certain, the government will subsidize by giving you cash, and contributes to your individual pension scheme.
The amount is about 2 months of the basic monthly salary spread over 12 months.
On top of that, those who are under Workfare scheme has subsidies for medical consultation, transport fare, and training courses.
I think that is a better idea.
It makes sure that the money is given directly to the poor, and their bosses will not use the increase in expenses to cut down on hours.
3 people like this
@scheng1 (24649)
• Singapore
30 Apr 17
@stasis Basic universal income won't work.
No matter what, people still have to work to make a living.
It is not right that some work to pay for those who are not working, but it is also not right that those who earn insane amount of money do not help those who are working hard but not earning enough.
Our government here at least has the foresight to tax the rich, and give the amount to the poor in the form of Workfare.
It requires that the poor go out and work.
If they really can't work because of health issue, then they can approach the charities.
The charities are partly funded by the government too.
The charities will help them to get free medical care, free schooling and food for their children, and a sum of money to help them live on.
2 people like this
@magnumopus (1644)
• Singapore
7 May 17
I complety agree with you. We must remember that a miminum wage does not necessarily mean its a living wage to cover the higher cost of living.
1 person likes this
@Taskr36 (13963)
• United States
1 May 17
I think the bigger problem is that people feel entitled to things they haven't earned. If you want to live like people did in the 80's, you can do that with minimum wage. I remember the 80's quite well. We didn't have the internet, cell phones, or cable television. These things existed, but no normal person had any of them. Those were for rich people. Now even homeless people feel entitled to such luxuries.Those 3 luxuries alone run people between $150-$200 a month.
Now you're saying that nobody can survive on that salary. Let's look at that. a full time job earning $7.25/hour gets you roughly $1,000/month after taxes. You need food to survive, and that'll run you around $150/month give or take. You'll need somewhere to live, so you should look for a studio apartment for around $500-$600 including utilities. Realistically though, you're poor so you should get a roommate and split expenses. That can get you under $500. So there you've got food and shelter for about $750/month, leaving you with $250 remaining for clothes, transportation, and other expenses. Of course, for this to work, you have to be willing to go without some of the luxuries that people feel entitled to as I listed above.
Getting past that though, think about what really happens when you raise the minimum wage. Most people are shortsighted and just imagine that extra money materialized and goes into the pockets of low wage workers. Nobody knows or cares where that money has to come from and people ignore what has happened every time they do raise minimum wage. Those low skill jobs don't just start paying more, they disappear. A small grocery store can't afford to pay kids bagging groceries $15/hour. Your local McDonald's can't afford it either. So when wages go up, staff gets cut with either layoffs, or reduced hours. When possible, workers are replaced with machines since kiosks don't get more expensive when minimum wage goes up, they're actually getting cheaper.
@stasis (91)
• United States
2 May 17
How do you mean, "haven't earned?" If you're working to make millions for a CEO, then you in turn should make a living wage. Maybe it's just me, but I'm a bit insulted when the work I put into a job is underpaid. I've always said everyone should have at least ONE job in retail and/or fast food -- once you've worked in those conditions, you appreciate the work they do much more.
The problem isn't entitlement. The problem is that the majority of this country THINKS it's about entitlement. America has a disturbing "if you don't work, you're worthless and burdensome" mentality and I can't understand why. Laborers simply want to earn a wage they can live on stably without worrying about getting by between paychecks. This is an economics issue, not an entitlement issue.
Furthermore, consider that even now, with the minimum wage as low as it is, the retail and fast food industries are still screwing their workers over by refusing to give them full-time hours so they don't have to supply health insurance, without which people living at or below the poverty level need just as much as anyone else. The minimum wage doesn't even apply to certain restaurant workers -- since it's assumed their tips will fill the gap, businesses can get away with paying them a measly $2.13/hour, which hasn't risen since '91.
The Department of Labor's blog ( reports "the minimum wage hasn't been raised in eight years. The cost of living, however, has gone up 12%. In addition, the value of the current minimum wage has gone down 20%." And despite the overall opinion, "most workers (9 out of 10) who would benefit from a minimum wage increase are adults," not teenagers. Back in 2013, the Huffington Post published an article about how if the minimum wage actually kept up with the increase in production, it would actually be $21.72/hour (http://huff.to/18lfrYC).
29 out of 50 states have taken it upon themselves to raise their minimum wages, and some of the bigger retailers have followed suit. Maybe this is why some people don't understand why other citizens have it harder -- because they hear someone talking about their retail job and automatically picture Walmart or Target, both of which DO, fortunately, pay their employees more than minimum wage. However, that's not the case everywhere and we could erase the disparity by just increasing the federal minimum wage.
Sadly, it's a common misconception that raising the minimum wage would prove fatal for businesses and the economy, when actually it's quite the opposite. Germany and Switzerland both have higher minimum wages AND lower unemployment rates than the U.S. As PBS also reported, "One of the reasons that increases in the minimum wage would not have an impact on unemployment is that in today’s economy an increase in minimum wage would come mostly out of profits. And there is plenty of that to go around." (http://to.pbs.org/1O3yLKy)
So yes, everyone deserves a living wage, no matter its dollar amount. If my husband and I could live off that, we'd have no qualms.
@Taskr36 (13963)
• United States
2 May 17
@stasis If you can't afford a certain luxury, with the money you've earned, then you haven't earned that luxury. I thought that was rather clear. If you're "making millions for a CEO," then you'd be worth millions. If you're flipping burgers or ringing up orders at a register, you're work is NOT "making millions for a CEO." If you feel you're underpaid, find a job that pays what you feel you deserve. If there are no jobs that pay you that amount, clearly your skills and labor don't justify such a wage. I've worked in both retail and fast food. I've earned $4.25 bagging groceries, $4.40 working in fast food, and as much as $7.75 when I worked in retail. I was good at every one of those jobs, great even. The thing is, I was still replaceable, because none of those jobs required much skill. The retail job required a bit of product knowledge, since I was selling computers, but you can train most people on that pretty easily. Appreciating the work doesn't change the market value of the labor.
The problem IS entitlement. People feel they're entitled to a substantial amount of money regardless of their skills, knowledge, experience, or work ethic. People feel they're entitled to luxuries because life is a bit harder without them.
The government has made it extremely expensive to pay full time workers. Did you know that the cost of employing a full time person has risen by over 60% in the last 10 years? That money's not going into your pocket, it's going into government coffers. It's going into compliance crap and Obamacare. You're costing your employer more, you're just not getting the money. Tipped wages are irrelevant. Tipped workers make well above minimum wage. If they really suck at their jobs, and somehow manage to make less than minimum wage, their employer is required, by law, to pay them the difference to ensure they are making at least minimum wage. Granted, if you're that bad at your job, you'd probably be fired before that became an issue.
Increases in production are irrelevant. Those increases are due to automation, which is replacing workers. Workers aren't doing more work, machines are. As wages increase, machines will take more jobs as they are more cost effective at a certain point.
The fact that many employers already pay more than minimum wage is proof that the market drives wages, not the government. By getting involved, the government is destroying low wage jobs which are great for young people trying to get their start in the workforce.
Your PBS article is simply wrong. Switzerland has no minimum wage. As such, it actually proves MY point and not yours. A minimum wage is unnecessary because the market drives wages. Government intervention basically eliminates any job where the labor produces less than the arbitrarily chosen wage. Why would you rather a person be unemployed, 100% dependent on welfare, rather than employed at a low wage job which, with hard work, could lead to a better job?
In the US, everyone who works a full time job earns a living wage. It's that simple.
Find out about five developed nations that have no federally regulated minimum wage and how these countries use unions to ensure workers are paid their due.
@stasis (91)
• United States
2 May 17
@Taskr36 I'm not debating you further. Mainly because you keep equating a person's RIGHT to a living wage as a "luxury," which is disturbing to me. It's also clear you have NO clue what it's like trying to live on a minimum wage, especially for families. You're obviously not considering people with disabilities, single parents, etc. It must be lovely to live in this magical world of yours where people live off an outdated wage.
Anyway, I've made my point, backed by reliable resources. And none of them prove your point. Have a nice day.
@stasis (91)
• United States
30 Apr 17
Does India use a minimum wage system? I'm interested to hear the differences and similarities between countries. :)
@stasis (91)
• United States
30 Apr 17
That's true, too. :( But at least if we had a living wage, the disparity between incomes and the amount of debts may not be so large.
@nanette64 (20364)
• Fairfield, Texas
30 Apr 17
I do agree @stasis . I can remember in the 70's making $2 an hour as a food waitress and hoping for the best in making decent tips. Of course you could buy 3 pounds of hamburger for a dollar. Today, you can't buy 1 pound for that. So the wages have to go up in order to match the economy. And you're right, the CEO's could give a crap about it's employees.
1 person likes this