Originally posted by CAConrad0825
The US labor market has suffered during the years of higher minimum wage increases.
It has suffered for the last three decades and if you can find the trend you seem to be suggesting I'll be most surprised.
The higher the wage the less an employer is willing to hire in that country.
That is not really the case as employers still need skilled labour and in countries where people actually have rights and freedoms skilled labour can
protect themselves from being ripped off by industry. Where will you find that 'cheaper' labour if the laws of your host country does not allow you
to base your production facilities in other countries?
The EU is finding this out the hard way but because of unions and labor legislation,
The EU is always opening up their economies to cheap ( shock&horror ) educated labour from Eastern and central Europe to say nothing of SEA.
European workers are not finding this out the 'hard way' as they knew it all along but failed to prevent their governments from opening up and
destroying the trade barriers that protected local labour. Stop blaming the unions as the Unions in most cases DO represent the people; the stronger
the unions the better living conditions and wages in that given country.
they have become used to having 1/3 of the year off and compensation for being laid for years after the fact.
And what's wrong with that if it can be made to work without ripping off other countries while protecting local industry and labour? Why should i
have to compete with sweat shop labour in Indonesia or Thailand? What use is my government if it refuses ( it's not like people want to compete with
people who basically slowly starve to death) to protect me from that by creating tariffs that will be employed to make local industry more productive
without robbing the workers blind?
The lobbyists pushing the min wage legislation are not those representing the common worker or their benevolent democratic
Yes they are and i am surprised you will go to such lengths to deny reality...
but labor unions.
Which is organized resistance to industry however bad name it got from Hollywood.
Unionists have labor contracts, their wage is set for years ahead and they have job security.
Years ahead? Maybe if you work for a defense contractor ( thus feeding from the taxpayer trough) but the rest of industry can hardly afford such
Other workers are judged by the performance. A higher minimum wage means less scabs to take the place of unionists when their demands are not
met and they go on strike.
Another common misconception ( lie spread by the media) is that average humans want something for nothing and that workers will always just want more
reward for doing less. People strike because they think the deserve a greater cut of the profits those who sit in offices seem to think they can
appropriate for themselves. Strikes normally happen when a given company has been ignoring it's workers demands for a long time while raking in the
profits and simply not sharing. Just go look at what the average worker will do when his company is doing badly ( pay cuts or whatever) and you will
soon realise which group is being irrationally greedy.
Higher Wages = Less Labor Budget, companies have overhead budgeting
For a higher wage you can normally attract better educated workers or insist on greater performance so it's not a zero sum game where the paymasters
always lose. The local telecom company in South-Africa have been laying off tens of thousands of people over the last few years and while it never had
serious financial difficulties they sure are raking in the cash now. The whole point of layoffs is not that there is no money but that you retain the
hardest workers and use the threat of layoff's to get two people's worth of labour from them.
...by increasing the rate the money has to come from somewhere, either raising prices or lowering labor compensation in terms of workers
Inflation is what happens when the government prints more money than there is goods to buy ( Bill Gates may be worth 234324334 billion dollars but he
can only buy so many cars and eat so many happy meals. Inflation is not something that is caused by the average person receiving a higher wage ( they
are very likely to buy actual goods which will stimulate demand thus resulting in sustained economic expansion) but something that results from the US
government printing trillions of dollars that goes into corporate pockets, to foreign dictators, to defense contractors who employ the same cheap
labour but have monopolies so can ask whatever they like for the finished product and generally land up in hands that will not stimulate the exchange
Inflation is robbery by the rich of the poor as they can still buy buy a new car the money that is now worth half as much while your now taking the
bus they probably own.
Don't be fooled and keep agitating for higher wages as higher wages must stimulate demand if the newly printed money is actually going to the average
worker. In the worse case scenario people will be able to afford what they require and will start saving again at which point the government can once
again start reigning in the cash supply to prevent old fashioned ( the real type) from becoming a problem.