Alabama has no min. wage. A couple of southern states just got to 7.25. Wyoming has a lower state rate.
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Minimum wage rates do not determine wage differentials.
- Thread starter Supposn
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Alabama has no min. wage. A couple of southern states just got to 7.25. Wyoming has a lower state rate.
The “race to the Bottom”.
CFM, the wage rates of foremen, managers, supervisors, do not have much affect upon the rates of those they supervise, but wage rates of the “indians” certainly effect the rates paid to their chiefs. Due to wage differentials, the minimum wage has some indirect effect upon all other wage rates.
The extent of the minimum's influence upon other job's rates are inversely related to the differences between the minimum and the jobs' rates. Lower job rates are more, and higher job rates are less affected by the minimum rate. (Where there's a scarcity of capable workers for any particular job, the minimum's affect is of no consequences).
The minimum wage rate is applicable to the least desirable employee or applicant for the least challenging task.
If the minimum rate laws were repealed, theoretical indefinite market determined minimum rates would emerge. Because someone can likely be found to perform some lesser challenging tasks for lesser wages, it's true that there would be more employment; but at extremely lesser wage rates for tasks that would not have justified the previously existing federal minimum wage rate. That's the devaluation of human labor, (i.e. wage rates “racing to the bottom”) that would likely too often occur.
Remember, due to wage differentials, the federal minimum wage indirectly affects all other wage rates.
Respectfully, Supposn
Eagle-Eye, I agree.
HR528 retains purchasing power by pegging it to the proprtional annual changes of USA's median wage rate. I haven't decided if that, or average wage rate, or average wage, or cost-price index would be preferable? But none of them are unacceptable. Respectfully, Supposn
No they don't. That's an excuse put forth by you "indians" in order to try and get more than you're worth. Your claim is that if you're paid a low wage, although it's equivalent and often greater than the skill set you offer, the wages of the "chiefs" is lower.
I don't make a wage, boy. That's a concept for those unable or unwilling to do anything but be paid by the hour. Try improving your skills and that concept may sink in.
There shouldn't be a minimum wage. An employer should be able to pay someone providing a $1/hour skill set $1/hour.
Gonzomin can't explain his own post.
cawacko
Well-known member
I just googled Wyoming and it said $7.25 which is the same as the federal.
I read five states don't have a minimum wage (which I admittedly was unaware) and thus default to the federal amount. But it's not like these states had a minimum wage and recently eliminated it. And a large number of cities and states have increased their minimum wage. So I'm not understanding your argument that there is this race to the bottom vis a vis the minimum wage.
Superfreak
Verified User
which of those are lower than the federal rate?
Superfreak
Verified User
If a State doesn't have one, the default is the federal min wage
Wyoming has a 5.15 min. If they have to pay 7.25 why do they have it? Does it have to do with the number of employees? Certain occupations and groups of employees are exempt from the Federal Min wage. There are people in the states with lower min wages, making less than 7.25.
Superfreak
Verified User
No it does not. Wyoming has min wage of $7.25, the same as the Fed rate.
The only ones that can make a 'wage' under the Fed minimum are those that work for tips. Tips that average out to more than the $7.25 per hour.
Not correct. They carve out exceptions for age and certain kinds of work. People under 20 can get 4.25 hr for the first 90 days. Students, both high school and college can get paid 6.16 hr.
Many states are min 7.25 for all.
cawacko
Well-known member
I don't know if that's true but let's assume it is. That's not a race to the bottom. Companies in New York, California and Illinois (for example) aren't moving to Wyoming to hire a bunch of part-time cheap high school labor.
deadcatbounce
Verified User
You are right. They are moving (in droves) because of excessive taxation and regulations.
Cawacko, it’s true. But that or companys' migrations are not significant determiners of wage differentials within different labor markets. Respectfully, Supposn
Truth Detector, to the extent of its purchasing power, the federal minimum wage rate has a greater effect upon lower, and a lesser effect upon higher wage rates. Its effect upon the lowest earning 40 percentile of USA’s employees range from critical to substantial portion of their wage rates.
Thus, to the extent of its purchasing power, the federal minimum wage rate reduces poverty among lower wage rate employees and their dependents, which is a positive contribution to our nation’s economy. Respectfully, Supposn
I don't think you want that. If the minimum wage had been increased with inflation when it first began in 1938 it would be $4.53 today.
CFM, "no”? Who doesn’t do what?
Some employees are getting more than they’re worth? You’re aware of many altruistic employers who choose to pay employees more they’re worth?
Employers determine what rate would be acceptable and in their own best interests. If the rate’s too low, they’ll have difficulty recruiting and retain better qualified employees. Enterprises are not legally required to hire employees or to hire any specific persons; but they are required to pay the applicable minimum wage rate. Respectfully, Supposn
That is a pile of bullshit. There is no credible evidence out there that arbitrary minimum wage rates do ANYTHING other than interfere with markets.
Example; The current arbitrary Federal minimum wage rate is $7.25 per hour. That amount is a poverty rate in San Francisco. Whereas, in Arkansas, you might have some purchasing power.
In addition, arbitrarily raising rates also merely creates inflationary pressures on small businesses. That means that any perceived benefit is soon lost when the cost of goods and services go up.
Lastly, the primary reason anyone is earning at that low rate is due to education, language barriers and lack of job skills, IE students. They are not earned by the bread winners in a household. Most are part time jobs.
The best way to get a higher paying job is through education or learning a skill that is in demand. NOT by waiting for GOVERNMENT politicians to do something for you.
Key take away; NO ONE in this country is forced to work for less than they think they are worth.