Consequences of eliminating the federal minimum wage.

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Supposn

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Consequences of eliminating the federal minimum wage.

Elimination of the Federal Minimum Wage, (i.e. FMW) rate would be the ultimate reduction of that rate. In that case states with their own minimum wage laws would be denied a significant economic shield.
If the FMW were eliminated, the purchasing powers of all states legally enforced or market determined minimum wage rates would soon be reduced.
Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and most other wages and salaries.


Based only upon our current FMW rate of $7.25/Hr., my guesstimate is the local labor markets’ will drive their state governments’ or their markets’ determined variable legally unenforceable minimum wage rates down to a range (expressed in U.S. dollars of current purchasing power) from less than $2 and will rarely exceed $5.

There are many job tasks that (in the employers’ opinions) do not justify the minimum rate but they now exist because their performance is necessary and/or is net profitable for the employers’ enterprises. These jobs will continue to exist but their wages purchasing powers will be substantially reduced.

Although we’ve induced the creation of more jobs (with wages of much lesser purchasing powers), the less demanding tasks of these additional jobs and their wages lesser purchasing powers would increase our labor pool for such jobs. The increased labor pool will exceed the increased numbers of jobs. Our unemployment rate would (on paper) indicate increased rates of unemployment. In actuality, the nation’s unemployment rates will not decrease.

Eliminating the FMW would reduce the proportion of our employees’ population’s middle income earners and increase the proportion of our employees’ lower income earners.
Currently a good portion, if not the majority of USA’s working poor are recipients of little or no public assistance. The reduction of employee earnings’ purchasing powers would increase public assistance rolls. Due to the reduction of wages and salaries purchasing powers, there’ll be more working poor and they will all require more public assistance.

Eliminating the FMW laws would be net economically detrimental to our nation.

I’m a proponent of annually pegging the federal minimum wage to the purchasing power of the U.S. dollar. Social Security retirement benefits have for many years been annually adjusted to a federal cost price index; it been working exactly as it was intended to.

Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and mopst other wages and salaries.


Refer to the following post of this thread entitled "Minimum wage" for further explanation of thje minimum wage's affect upon the median wage and most other wages and salaries.




Respectfully, Supposn
 
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Minimum wage rates.

Minimum wage rates:

A region’s effective minimum wage rate, (i.e. due to governments’ explicit legally enforced determinations or the within the regions’ labor market’s interactivity are what’s generally paid to the least sought after job applicants and/or for performing the least demanding and/or for the least distasteful tasks. (Getting hired is among a job’s demands).

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Some jobs are unaffected by governments’ determined minimum rates:

Governments’ determined minimum wage rates are of less consequence if they are less enforced and of no consequence if they’re less than regions’ variable interactive market’s minimum wage.
If a job's’ tasks requires labor that’s in short supply, a general minimum wage rate is of no significant consequence to that specific job’s pay rate.

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Attributes common to all minimum wage bench marks:

Other than the afore mentioned exceptions, both government or market determined minimum wage rates serve the function of THE minimum bench mark and affects the median and all other of a region’s wages and salaries in the same manner.

Goods and service products exported from lower wage regions undermine the wage scales of the importing regions. The federal minimum wage rates serves to somewhat shield U.S. states that choose to maintain or increase the federal minimum wage rate within their own jurisdictions. .
Refer to:
http://www.justplainpolitics.com/sh...cits-are-always-detrimental-to-a-nation’s-GDP
and to
http://www.justplainpolitics.com/sh...ade-deficit-and-the-state-of-the-union-speech
or
http://www.justplainpolitics.com/sh...he-trade-deficit-increase-GDP-amp-median-wage .

Governments’ minimum rate’s affect upon jobs’ pay rates are proportional and inversely related to the difference between the two rates purchasing powers; (i.e. those earning less benefit more and those earning more benefit proportionally less due to the FMW laws).

A minimum wage rate never reduces the purchasing powers of any jobs’ wages or salaries.
Spending for wages, similar to all other spending contribute to currency inflation and similar to most other spending, the minimum wage rate is less a cause and more a victim of currency inflation.

Excluding jobs as described within the afore mentioned clause entitled “jobs unaffected by the minimum wage rate”, reducing the purchasing power of a region’s minimum wage rate is reflected by the reduced purchasing powers of the region’s median wage and all its other wages and salaries.

I am a proponent of annually pegging the federal minimum wage to the purchasing power of the U.S. dollar. Social Security retirement benefits have for many years been annually adjusted to a federal cost price index; it been working exactly as it was intended to.
Such reductions of the minimum wage's purchasing power occur when the U.S. congress fails to keep the FMW rate’s purchasing power abreast with that of the U.S. dollar.

Respectfully, Supposn
 
Supposn said:
Consequences of eliminating the federal minimum wage.

Elimination of the Federal Minimum Wage, (i.e. FMW) rate would be the ultimate reduction of that rate. In that case states with their own minimum wage laws would be denied a significant economic shield.
If the FMW were eliminated, the purchasing powers of all states legally enforced or market determined minimum wage rates would soon be reduced.
Click to expand...

Government Minimum Wage Laws only cause unemployment. Unemployment is what causes reduction in purchasing power.

Market forces and competition are what’s best to set wage rates. Lower wage rates are only realized by unskilled entry level employees. Wage rates should be determined by the employee’s ”WORTH’ i. e. value to the employer. The cost of every product should be determined by its ”WORTH” to the consumer to be determined by every free individual consumer.

Government just fucks up what would otherwise be a perfect system!

Government causes unemployment and inflation, prohibits freedom and mandates fucking stupidity and perpetuates disincentive and enslaves the poor to reliance on idiot government!

“Government is not reason it is not eloquence, its force like fire a troublesome servant and a fearful master. Never for a moment should it be left to irresponsible actions.” (George Washington)
 
Classic Liberal said:
Government Minimum Wage Laws only cause unemployment. Unemployment is what causes reduction in purchasing power.

Market forces and competition are what’s best to set wage rates. Lower wage rates are only realized by unskilled entry level employees. Wage rates should be determined by the employee’s ”WORTH’ i. e. value to the employer. The cost of every product should be determined by its ”WORTH” to the consumer to be determined by every free individual consumer. ...
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Classic Liberal, the sub-topic of increased unemployment with regard to the minimum wage is primarily the sub-topic of youths’ unemployment rates. Those who advocate creating jobs for teen agers by eliminating the federal minimum wage laws would reduce the aggregate lifetime incomes of our entire employees’ population. The youths we hope to assist by repealing the FMW laws are fully represented and they will suffer their full share of reduced lifetime earnings if we eliminated the FMW.

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There are fewer potential and existing employers and many more potential and existing employees and this is even more the case when applied to lower earning employees; it is a buyers’ market. The minimum wage affects ALL USA wages and salaries. I’m (I believe), reasonably supposing) this particularly and significantly affects no less than a quarter of our nation’s lowest earning full time employees.
[I.e. the minimum wage significantly affects our nation’s wages and salaries].

Some tasks can be deferred until the employer can obtain labor at more favorable rates. Lower wage job applicants generally must decide between accepting the wage rates offered or risk never being able to recoup the loss of time for seeking more reasonable wage rates. The net value of that time can never be recovered].
[I.e. for lower wage earners, the advantage is to the buyers’ within labor markets. That in itself justifies the need for the federal minimum wage rate].

The federal minimum wage affects ALL USA wages. The affect is positive and inversely related to the difference between the federal minimum’s and the jobs’ rates. Thus the FMW rate has significant affect upon the lowest earning quarter of USA’s entire population of full time employees.
[I.e. the FMW is of benefit to ALL wage and salary earners. It is of significant benefit to no less than 25% of our nation’s full time wage earner].

Respectfully, Supposn
 
Classic Liberal said:
...Government just fucks up what would otherwise be a perfect system!

Government causes unemployment and inflation, prohibits freedom and mandates fucking stupidity and perpetuates disincentive and enslaves the poor to reliance on idiot government!

“Government is not reason it is not eloquence, its force like fire a troublesome servant and a fearful master. Never for a moment should it be left to irresponsible actions.” (George Washington)
Click to expand...

Classic Liberal, I posted my response to this portion of your post. Refer to:
http://www.justplainpolitics.com/showthread.php?51930-The-“credit-crunch”-“Too-big-to-fail”.
Respectfully, Supposn
 
I'm all for raising the minimum wage. Then I won't have to worry about some kid fucking up my Burger, it'll be a robot flipping it instead.
 
Supposn said:
Classic Liberal, the sub-topic of increased unemployment with regard to the minimum wage is primarily the sub-topic of youths’ unemployment rates. Those who advocate creating jobs for teen agers by eliminating the federal minimum wage laws would reduce the aggregate lifetime incomes of our entire employees’ population. The youths we hope to assist by repealing the FMW laws are fully represented and they will suffer their full share of reduced lifetime earnings if we eliminated the FMW.

///////////////////////////////
There are fewer potential and existing employers and many more potential and existing employees and this is even more the case when applied to lower earning employees; it is a buyers’ market. The minimum wage affects ALL USA wages and salaries. I’m (I believe), reasonably supposing) this particularly and significantly affects no less than a quarter of our nation’s lowest earning full time employees.
[I.e. the minimum wage significantly affects our nation’s wages and salaries].

Some tasks can be deferred until the employer can obtain labor at more favorable rates. Lower wage job applicants generally must decide between accepting the wage rates offered or risk never being able to recoup the loss of time for seeking more reasonable wage rates. The net value of that time can never be recovered].
[I.e. for lower wage earners, the advantage is to the buyers’ within labor markets. That in itself justifies the need for the federal minimum wage rate].

The federal minimum wage affects ALL USA wages. The affect is positive and inversely related to the difference between the federal minimum’s and the jobs’ rates. Thus the FMW rate has significant affect upon the lowest earning quarter of USA’s entire population of full time employees.
[I.e. the FMW is of benefit to ALL wage and salary earners. It is of significant benefit to no less than 25% of our nation’s full time wage earner].

Respectfully, Supposn
Click to expand...

http://www.cato.org/publications/policy-analysis/negative-effects-minimum-wage-laws
 
Robo said:
Government Minimum Wage Laws only cause unemployment. Unemployment is what causes reduction in purchasing power.)
Click to expand...

Robo, actually during times of great unemployment, the purchasing power of the U.S. dollar’s increased; and thus each dollar of the federal minimum, the median and all other wages and salary rates have greater value.

I recall someone asking my mother if she “remembered when steak was 25 cents per pound”; my mother response was “Sure I do; that’s when none of us had a quarter”.

Respectfully, Supposn
 
Robo said:
... Market forces and competition are what’s best to set wage rates. Lower wage rates are only realized by unskilled entry level employees. Wage rates should be determined by the employee’s ”WORTH’ i. e. value to the employer. The cost of every product should be determined by its ”WORTH” to the consumer to be determined by every free individual consumer.

Government just fucks up what would otherwise be a perfect system!

Government causes unemployment and inflation, prohibits freedom and mandates fucking stupidity and perpetuates disincentive and enslaves the poor to reliance on idiot government!

“Government is not reason it is not eloquence, its force like fire a troublesome servant and a fearful master. Never for a moment should it be left to irresponsible actions.” (George Washington)
Click to expand...

Robo, the federal minimum wage, (FMW) rate is to USA’s net economic benefit.

The FMW rate affects ALL USA wage and salary rates but it does not affect them all equally.
The extent of the FMW rate’s effect upon a job’s rate is proportionally related to the differences between the federal minimum and the job’s rate. Lesser wage scales benefit more and higher wage scales benefit less but the FMW rate is not detriment to any wage scales.

The FMW rate is a MINIMUM wage without regard for any factors that would justify a greater wage rate.
Its purposes are to somewhat reduce the extent of USA’s poverty, our aggregate numbers of persons requiring financial public assistance and the expenditures of all USA government levels for providing such assistance.

The FMW rate prevents spoilers of our national economy.
It does not require that Mississippi or Alabama conform to Oregon or NY states wage schedules; it does not permit Mississippi or Alabama conform to undermine Oregon or NY states wage schedules and economies.
The FMW rate does not require that Mississippi or Alabama conform to Oregon or NY states wage schedules; it does not permit Mississippi or Alabama conform or undermine Oregon or NY states wage schedules and economies and does not hinder any government subordinate federal law from increasing the legal minimum rate within their own jurisdictions.

The FMW rate is not among the primary causes of the U.S. dollar’s inflation; the FMW rate less a cause and much more a victim of the dollar’s loss of purchasing power.

Every increase of the FMW rate has been (more than otherwise) to our economy’s net benefit; (otherwise being if an increase of the FMW rate had not occurred). .he FMW rate has always been to USA’s net economic benefit; but the extent of that benefit is limited by the purchasing power of the FMW rate.

[I.E. regardless of USA’s economy at times when we enacted a FMW rate increase, our economy was better than otherwise due to that increase; otherwise being if then there had not been a FMW rate increase.]

Due to the U.S. dollar’s inflation, the FMW rate is periodically updated. Under our present statutes, the timing and extents of adjustments to the minimum rate are politically determined within our U.S. Congress. Because congress generally permits the purchasing power of the FMW rate to lag well behind the variable purchasing power of the U.S. dollar, our minimum and average and median wages and salaries generally do not retain their purchasing powers.
The FMW rate is more a victim and less a cause of our currency inflation. The FMW rate is not among the primary drivers of the U.S. dollar’s losses of purchasing power.

I’m among the proponents advocating the FMW rate’s purchasing power be annually monitored and any loss of its purchasing power should (very soon afterward) be restored. The timing and extent of adjustment to the FMW rate should be determined by non-partisan statisticians and mathematicians rather than by our congresses’ politicians.

Inevitably a bill will passed that will enact the FMW rate to be monitored and annually adjusted when necessary to stay abreast with the cost-price index number. This will better retain the FMW rate's purchasing power while the U.S. Congress retains their oversight powers.

Respectfully, Supposn
 
Frank Horrigan said:
I'm all for raising the minimum wage. Then I won't have to worry about some kid fucking up my Burger, it'll be a robot flipping it instead.
Click to expand...

Word
The interesting thing here in low cost if living central Virginia is that fast food pays well over min as they cannot find kids smart enough to perform even thear simple tasks for that rate.
 
there was a time in this country there was no minimum wage.

It worked so well the people thought up an implemented a minimum wage and things worked better.




pretending that going back to that which the people agreed needed fixing is really really fucking stupid
 
evince said:
there was a time in this country there was no minimum wage.

It worked so well the people thought up an implemented a minimum wage and things worked better.




pretending that going back to that which the people agreed needed fixing is really really fucking stupid
Click to expand...

What's your basis for the claim things worked better as a result?

The government takes lots of actions. Doesn't mean they are all right.
 
https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States



History[edit]

In 1912, Massachusetts organized a commission to recommend non-compulsory minimum wages for women and children. Within eight years, at least thirteen U.S. states and the District of Columbia would pass minimum wage laws.[10] The Lochner era United States Supreme Court consistently invalidated compulsory minimum wage laws. The laws were considered unconstitutional for interfering with the ability of employers to freely negotiate appropriate wage contracts with employees.[11]




No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.

President Franklin Delano Roosevelt, 1933[12]

The first attempt at establishing a national minimum wage came in 1933, when a $0.25 per hour standard was set as part of the National Industrial Recovery Act. However, in the 1935 court case Schechter Poultry Corp. v. United States (295 U.S. 495), the United States Supreme Court declared the act unconstitutional, and the minimum wage was abolished. The minimum wage was re-established in the United States in 1938 (pursuant to the Fair Labor Standards Act), once again at $0.25 per hour ($4.23 in 2015 dollars[13]). In United States v. Darby Lumber Co. (1941), the Supreme Court upheld the Fair Labor Standards Act, holding that Congress had the power under the Commerce Clause to regulate employment conditions.[14]
 
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