Opinion: Increasing the minimum wage comes at too high a price for workers | CNN
Opinion: Increasing the minimum wage comes at too high a price for workers | CNN
More money in the pockets of entry-level workers sounds great, but Rachel Greszler of the conservative Heritage Foundation argues that such workers, and the economy writ large, are hurt more than helped by increases in the minimum wage.
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Rising wages are a great thing when they are the natural result of workers becoming more productive
Oh yeah, I agree, a great thing, but then why
From 1979 to 2020, net productivity rose 61.8%, while the hourly pay of typical workers grew far slower—increasing only 17.5% over four decades (after adjusting for inflation https://www.epi.org/productivity-pay-gap/
Well I guess because
Starting in the late 1970s policymakers began dismantling all the policy bulwarks helping to ensure that typical workers’ wages grew with productivity. Excess unemployment was tolerated to keep any chance of inflation in check. Raises in the federal minimum wage became smaller and rarer. Labor law failed to keep pace with growing employer hostility toward unions. Tax rates on top incomes were lowered. And anti-worker deregulatory pushes—from the deregulation of the trucking and airline industries to the retreat of anti-trust policy to the dismantling of financial regulations and more—succeeded again and again. https://www.epi.org/productivity-pay-gap/
But, but, who could have pushed for these policies that deliberately devalued labor in America and reduced workers rights?
The Heritage Foundation, sometimes referred to simply as "Heritage,"[1][2] is an activist American conservative think tank based in Washington, D.C. Founded in 1973, it took a leading role in the conservative movement in the 1980s during the presidency of Ronald Reagan, whose policies were taken from Heritage Foundation studies https://en.m.wikipedia.org/wiki/The_Heritage_Foundation
So rising wages are a great thing when it's the natural result of more productivity, but the heritage foundation has spent the last 40 years making sure that wages don't naturally keep pace.
Now the heritage foundation is trying to convince you that workers are better off with lower wages, happier when they can't afford healthcare or pay rent, and more fulfilled when they work two jobs but are always on the brink of homelessness. Don't be fooled.
@Bongo_Stryker @wintermute_oregon Well this is interesting...that net productivity you cited is far below the rate of inflation over the same time period, which is 256.49%.
You'd think this would hurt companies, but naturally it hurts the people at the bottom most.
@Bongo_Stryker @wintermute_oregon I also calculated the numbers, the companies are actually slightly disproportionately disadvantaged. Productivity over that time period for companies was 24.9% of the rate of inflation, while hourly pay rose by 28.3% of that productivity. Not even a massive difference TBH. It doesn't seem as unfair as it sounds at first glance.
Ah yes. The classic “i ran the numbers far better than any financial analyst”
@breadsmasher Send me your financial analyst numbers that contradict this, and I will accept them.
Did I ever claim to be one? Did I post any numbers at all?
@breadsmasher Nope, so I guess I have you beat in that category 😜
You insinuated that my numbers contradicted something analysts had said, so I was thinking you had a source for what those analysts were saying, which would prove me wrong. I guess not!