You are viewing a single comment's thread.

view the rest of the comments →

0
115

[–] bobroland 0 points 115 points (+115|-0) ago 

We really don't have enough data yet. Economic policies typically don't show results for at least a year or two. In this case, it should be longer.

Here's what we have seen. Unemployment has not increased, although the growth of new jobs is slightly lower than the national average. The number of restaurants has shrunk by .1% and opposed to the previous years growth of +1.5%. I think it's fair to say that the scenario is not as bad as some feared, not as positive as others have advocated.

Now, the question is what are the long term ramifications? Even those who push for a minimum wage increase admit we simply don't know what impact a drastic rise will have.

I should point out my bias. I live in Buffalo, NY where the cost of living is low, but so are the wages. New York State, under pressure from New York City, is pushing to raise the minimum wage for only fast food workers to $15. That means that a person flipping burgers in Buffalo will make as much as an EMT, a starting system admin, an insurance adjuster and a starting teacher. This will hurt the working poor as those fast food jobs they rely upon will be grabbed by people with a higher level of education and training. So, that's where I stand on the issue, and use that knowledge to view my answer through an objective lense.

8
36

[–] 06pbmKC 8 points 36 points (+44|-8) ago 

There are talks about it in Kansas City too. Wages here are very low, but our cost of living is very low too. They're pushing for $15/hr here and it is infuriating. The rest of the job market will not correct itself. It is devaluing the $40,000 I've spent on college.

2
23

[–] babij 2 points 23 points (+25|-2) ago 

$40,000 is less than a year's tuition at my college...

1
10

[–] FeralVoat 1 points 10 points (+11|-1) ago 

On the plus side, they will almost certainly need to raise the thresholds for what income levels are considered 'poverty'. If you're lucky, you'll suddenly qualify for benefits that weren't available to you before.

woop

0
5

[–] LoyalSol 0 points 5 points (+5|-0) ago 

It's kinda depressing that as a graduate student in chemistry I was making $24,000 a year and to do that I had to take on extra work through a government agency. And I was making more than the national average. Yet at $15 an hour someone flipping burgers or weighing tables would be making a little under $30,000 a year.

0
4

[–] voat-ist 0 points 4 points (+4|-0) ago 

The good news is the inflation will make it easier to pay student loans...

7
10

[–] Staross 7 points 10 points (+17|-7) ago  (edited ago)

Well we know some things from historical experience.

  • It doesn't affect growth on long time scales (which is mainly determined by technological progress and education)
  • It reduces revenue inequalities
  • If it's applied only in a small geographical region some might lose and some might win. It creates fluxes at the boundary. These sort of measures are usually better country wise for that reason.

Source: Piketty's Capital in the Twenty-First Century

4
27

[–] waldojim42 4 points 27 points (+31|-4) ago 

I'm sorry, but "reduces revenue inequalities" sounds like hippy speak for "they didn't bother getting educated or learning a skill, but they make as much as your skilled position does."

0
5

[–] Meph 0 points 5 points (+5|-0) ago  (edited ago)

New York State, under pressure from New York City, is pushing to raise the minimum wage for only fast food workers to $15.

To add to this, and your point that followed.

1) You are correct, $15/hr means higher educated people will likely say fuck it and go for those jobs. Especially since many of them aren't finding jobs anyways, or at least not jobs in their chosen field of study. Which means it'll be an employers market, so they can pick and choose from a larger pool of potential employees. This will inevitably push out the lower-skilled and uneducated since obviously much better candidates are available to hire. (edit not all people, most EMTs for an example do their job because of passion moreso than money, and they require constant education and re-evaluation, so it's not something you can just leave for a couple years then say you want back in. The issue will be more with those who have 2-4 year degrees collecting dust)

2) The $15/hr wage is going to be the catalyst of the Automation to come to the food service industry. The wage of a cashier will now be greater than the cost of a tablet, including maintenance and replacements. Prepare to see McDonald's with automated ordering soon. Cooking is a little trickier and more expensive, that's still coming, but won't be as rapid as the automated ordering. Currently McD's and other places have been merely dabbling around with their tablets replacing workers, doing trial runs at select locations. This wage increase will change that and make it widespread implementation.

0
5

[–] KillerMech 0 points 5 points (+5|-0) ago 

Why would someone with a higher level of education grab a fast food job just because it pays the same as an entry level job they they trained/went to school for? When you train or go to school for something you are working towards a career you want. Flipping burgers doesn't help you advance in the EMT or sys admin career fields.

1
5

[–] bobroland 1 points 5 points (+6|-1) ago 

I don't know. There have been many a time in my life where the notion of washing dishes for a large enough salary seemed a great deal better than going to meetings and working in an office, you know?