Saturday, August 22, 2015

A question about policy...

Let's preface with acknowledging that I don't have the answers. And I'm neither endorsing nor condemning (per se...) any of the following. I'm simply trying to look at the current state, compare to the proposed future state, and ask what I think are relatively common sense questions...

So on the one hand, we have some calls for a raise in the federal minimum wage to $15 and hour. Admittedly I'm not an economist, so I'm not an authority on predicting negative outcomes. So let's just go with the loudest detractor: an increase in income will create an uptick in purchasing, which will lower supply (less stuff on the shelves), increase demand (people still want the stuff), and drive up prices. In essence, more money in the economy=higher prices for everything. Fair enough.  Right off the bat, I feel compelled to ask why supply and demand never seems to go the other way.  Prices always seem to rise, but never really fall. Sure, a couple cents on gas here and there, but I don't think the economic doomsday mentality is worried about pennies...

The other big issue people seem to have with a higher minimum wage is that "minimum wage jobs aren't meant to provide a living wage". As one commentor put it, minimum wage jobs are intended to inspire people to work harder and better their position. (Of course, I feel as though I've been fairly open regarding my perspective on this mentality - A Self-Made Man, Just Get a Job, I think I can I think I can etc.)

Okay, either way, let's just keep that argument in mind, that if some people have more money, everyone has to spend more.

Now, let's change gears. Recent presidential candidates have been (loudly) voicing immigration reform, up to and including deporting everyone. A pinnacle argument they make is that these people, this "other", are taking not only our federal support money (read: welfare and subsidized housing), but "stealing" jobs that would otherwise have "hardworking" Americans.

[Just a quick aside on the "other" that's living off the system: funny that the very crowd these candidates are trying to incite with their rhetoric about the sin of handouts are, well...here's the top five articles that address that idea. Since I'm not sure about copyright and such, they're listed generically: first article, second, third, fourth, fifth]

Beside the point.

Anyway, okay, let's roll with the premise. Now, they also admit that these "undocumented workers" have these jobs because employers can pay them less. Five bucks an hour, twelve hours a day, seven days a week with no overtime or benefits? I hate to say it, but that's just the free market at work. Again, beside the point.

So now we can put American citizens into these jobs.with the full protections afforded them (check out Imposed Regulations if you're wondering my thoughts on true free market capitalism. However, the very idea that the same people are advocating imposing more rules on employers while simultaneously touting the free market is just hilarious to me).

Again, beside the point.

So now these workers make at least minimum wage, OT after 40 hours, benefits, maternity leave, the potential to *gasp* unionize... So, wouldn't, um, this, erm, add money into the consumer's pocket? In effect, wouldn't this do the same thing increasing the minimum wage?

Now again, I'm not an authority on the subject. I don't have any answers, only questions.

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