Matt Davies by Matt Davies

Matt Davies

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  1. Tim Culberson

    Tim Culberson said, 4 months ago

    Will raising min wage be a gain, or will rising costs eat up any gain? Does anyone know of any studies?

  2. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @Tim Culberson

    Minimum wage increases don’t have much effect on overall inflation, but do affect sectors where minimum wage workers are a large part of the operational cost, ie. fast food chains, grocery stores.

    “Despite the different methodologies, data periods and data sources, most studies found that a 10% US minimum wage increase raises food prices by no more than 4% and overall prices by no more than 0.4%.”

    A Survey of the Effects of Minimum Wages on Prices

  3. motivemagus

    motivemagus said, 4 months ago

    @Uncle Joe

    Thanks, Joe. Saved me the trouble of finding it.
    I should add that the peak earning power of minimum wage was 1968, so we’re due.

  4. Enoki

    Enoki said, 4 months ago

    *And if he gets that minimum wage hike he’ll be permanently on food stamps, medicade, housing subsidies, winter utilities subsidy, and welfare as he’ll be unemployed…
    This is unless he can compete with the robot that replaced him….

  5. dtroutma

    dtroutma GoComics PRO Member said, 4 months ago

    Logic would dictate, as would demographics, that any “federal minimum wage” should include regional variance, like tying to economies in different SMSAs (Standard Metropolitan Statistical Areas), to match that minimum wage to regional cost of living, as well as business volume and potential to pay wages relative to the ACTUAL income of the business. An across the board national minimum wage makes no sense economically for business, OR from a “survivable” minimum needed by employees to meet their COL obligations. Hmmm, gee, that’s exactly what union contracts long did, along with focusing even more on working conditions and benefits, rather than salary per se. (My federal union, btw, had absolutely NO CONTROL over salaries set by Congress, but we COULD improve working conditions, like “flex-time”, health coverage availability, and safety/environmental conditions.)

  6. BrassOrchid

    BrassOrchid GoComics PRO Member said, 4 months ago

    @Uncle Joe

    “Despite the different methodologies, data periods and data sources, most studies found that a 10% US minimum wage increase raises food prices by no more than 4% and overall prices by no more than 0.4%.”

    And yet, somehow, inflation will still eat up the minimum wage and leave these people worse off than before, so they come back again demanding MORE Justice, which, while they hate the taste of it, they love the idea. How about we stop deliberately inflating the Federal budget by a minimum of 10% per annum as a first step to curbing the inflation that requires people to demand a higher minimum wage and depend upon government social programs for sustenance? Too radical a concept? Too far from the day-to-day business-as-usual status quo?

  7. martens misses all her friends

    martens misses all her friends GoComics PRO Member said, 4 months ago

    So how carefully did Enoki, BrassOrchid and SkeptiCal read that paper given by Uncle Joe? (it’s 17 pages with a lot of data, and somehow I doubt that it was read and deeply considered by them.) Harley of course did not, because Harley never bothers with evidence and studies that interfere with his conclusions.
    It’s a valuable paper and worth the time if one really cares about trying to get real information on the subject.

  8. Ruff, release Dr. C and Ahab.

    Ruff, release Dr. C and Ahab. GoComics PRO Member said, 4 months ago

    ^ Actually, that paper has an abstract, and a conclusion. Reading those will give you the gist of it.

  9. mdavis4183

    mdavis4183 GoComics PRO Member said, 4 months ago

    Increase the minimum wage and you increase unemployment and inflation, which increases the cst of everything, which hurts the poor and seniors who the Democrats claim to care about.

  10. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @martens misses all her friends

    “So how carefully did Enoki, BrassOrchid and SkeptiCal read that paper given by Uncle Joe?”

    I doubt they actually read it. The only point the paper asserted was regarding the effect of minimum wage increases on inflation. Minimum wage increases have almost no effect on overall prices. They have more effect on food prices, but less than the actual increase, so it’s hard to argue that people getting a raise through a minimum wage increase are falling behind.

    The paper doesn’t attempt to address employment rates.

    Contrary to the responses, there is no strong evidence that minimum wage increases kill jobs, though they do seem push teenagers out of the workforce in favor of slightly older workers. The strange problem with that is that it also can increase high school drop out rates because students incorrectly some assume they can get a job without graduating.

  11. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @BrassOrchid

    “And yet, somehow, inflation will still eat up the minimum wage and leave these people worse off than before”

    Really? Explain that to me. Why are we still seeing next to nil inflation despite Federal Spending? Why was there deflation in the 30s, despite record levels of government spending?

    My suspicion is that we won’t see inflation unless/until we have a much tighter job market that starts driving up wages on a broad scale, not just the bottom end. Wages & inflation are connected, but not nearly as tightly as you seem to think. Inflation has been low for a while, but wages are even more stagnant. We have plenty of room for wages to catch up.

  12. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @SkepticCal

    “The increased cost of labor must be passed on to the consumer in some form. It is not free.”

    Or it can result in slightly lower profits for investors. I’ll leave yo to figure out whether wages or the stock markets are at a healthy level.

  13. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @Enoki

    “This is unless he can compete with the robot that replaced him….”

    Seriously, a good point. Automation is reducing the need for workers. We’ve seen a transformation on factory floors, now we’re seeing one in the white collar world.

    As I see it, our choices are:

    a) Keep expanding the social welfare system

    b) Pay people a living wage for fewer hours than we have in the past.

    c) Cut social welfare, keep devaluing low skill labor & let those that fall out at the bottom starve to death.

  14. Uncle Joe

    Uncle Joe GoComics PRO Member said, 4 months ago

    @Harleyquinn

    Sorry Harley, that’s just a talking points opinion piece. Dunkleberg makes no attempt to back up any of his claims. He dismisses studies that don’t agree with his claims as “contrary to common sense”. That’s some weak tea, as far as I’m concerned.

  15. BrassOrchid

    BrassOrchid GoComics PRO Member said, 4 months ago

    @Uncle Joe

    “Really? Explain that to me. Why are we still seeing next to nil inflation despite Federal Spending? Why was there deflation in the 30s, despite record levels of government spending?”
    Yeah… but if we raise the minimum wage, that will fix things and we will never need to do it again. So, having done it already, we don’t need to do it now. Or did I not understand the process of magical promises?
    Let’s try something unusual, like not taxing the productive class into poverty, rather than bemoaning the wealth of the ownership class, which, if distributed among the production class would be as a single drop of water on the surface of the Sun, not to even mention that extracting that wealth from the economy would mean liquidating holdings and withdrawing all investment. Saying that wages have room to catch up is a bit like saying that an addiction is only a problem if we can’t get our fix. The “fix” hasn’t seemed to work yet, and the problem is getting worse with every iteration. Progressively worse, which, I suppose, is as much progress as of which we humans are capable as progressives.

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