Obama raising minimum wage. I could hear all the ignorant people cheer at this.

[HMFIC_BROWSIN]

ITT: Americans would rather have everyone working in sweatshops if it wasn't for BIG GUVM'NT and its socialist marxist "minimum wage" laws crippling the economy.

why is it the communist gov'ts of the world are the most known for sweatshops? thoughts?

[PotatosGonPotat]

Min wage jobs = fast food restaurants. They are getting expensive already ;if the prices go up more, then many will fold.

jakes on them I don't eat fast food

[DrTorpedo]

I have been in macroeconomics 101 for 4 weeks and can already tell that Obama is doing everything backwards.

When the economy is bad the govt should:
-lower taxes to encourage businesses to invest and grow
-businesses hire more people due to lower taxes and more people have money to spend and stimulate the economy

What Obama has done:
-increased taxes
-businesses lay people off and decrease their hours
-less money in people's pockets and encourages more businesses to leave US thus even more unemployment

Obama has to be doing this on purpose

Yes of course...


Cut taxes during a period of time when people are already spending less and investing less to stagnate economic growth even more. It may be counterproductive, but it may work, damnit!

---------

The S&P 500 is making record profits, more than a third more profit than before the recession, but median wages are falling. Businesses have the money to pay their workers, they just choose to lower their pay because lots of people are seeking work and they can exploit that.

[John L]

Because they didn't take the risk of investing in the first place...

Their is no risk, people need places to live so landlords will automatically make money.

Real Estate should be nationalized anyway, there won't be nearly as many headaches for homeowners/landlords if the government took on all the problems of owning land.

[iron_monster]

Their is no risk, people need places to live so landlords will automatically make money.

Real Estate should be nationalized anyway, there won't be nearly as many headaches for homeowners/landlords if the government took on all the problems of owning land.

I hope you're being facetious

[phillyfreak7]

I have been in macroeconomics 101 for 4 weeks and can already tell that Obama is doing everything backwards.

When the economy is bad the govt should:
-lower taxes to encourage businesses to invest and grow
-businesses hire more people due to lower taxes and more people have money to spend and stimulate the economy

What Obama has done:
-increased taxes
-businesses lay people off and decrease their hours
-less money in people's pockets and encourages more businesses to leave US thus even more unemployment

Obama has to be doing this on purpose

Right. You're smarter than Obama's economic team, because you've been taking a macroeconomics course. lol

[Cr1mson_King]

Tie it to cost of living, sounds good on paper.


Just sick and tired of no wealth coming to us plebs, only going to the rich.

[mazaa]

Their is no risk, people need places to live so landlords will automatically make money.

Real Estate should be nationalized anyway, there won't be nearly as many headaches for homeowners/landlords if the government took on all the problems of owning land.

Are you actually this fukn retarded bro?

I'm not even gonna bother replying anymore lol.

[miscsleepdoctor]

Their is no risk, people need places to live so landlords will automatically make money.

Real Estate should be nationalized anyway, there won't be nearly as many headaches for homeowners/landlords if the government took on all the problems of owning land.

please be kidding
please be kidding

[silvrmoos]

Since we're all economists, let's examine this properly.

We have an increase in the minimum wage. Ceteris paribus, this has some immediate effects that are worth noting.
1. Disposable income for those earning between $7.50 and $8.99 increases by $9-(current wage)*hours worked. This results in an outward shift in demand.
2. Hiring in positions where individuals were valued at between $7.50 and $8.99 will freeze.
3. There will be a decline in welfare and medicaid recipients. This new increase in income will make many ineligible for these programs.
4. The increase in labor costs will offset corporate profits.
5. Demand for money (specifically M1 and M2) will shift (increase)

In the long run:
1. Price levels will increase though whether ABSOLUTE price levels will be higher will depend upon the liquidity effect, income and expected price level and expected inflation effects.
2. Total employment may increase or decrease. This will depend upon whether the increased labor cost can be offset by (and some of these work both ways): the outward demand shift, government policy and most importantly, how the previous increase in demand for money will sufficiently suppress interest rates to outweigh the effects of increased income and prices pushing the rates higher)
3. Economic growth may increase or decrease. This is a giant bag of worms that I don't want to open in this thread; but, in simplest terms it boils down to what the government does with the increased revenue, whether long term corporate economic gains were affected (important to note that these are a function of the aforementioned money markets) and a series of other less important factors. In Econ 102 terms (think of the minimum wage increase as an increase in government spending i.e. a stimulus package) what is the value of the government spending multiplier?

Basically, the minimum wage increase gives a "kick in the arse" to those who benefit from it. It may provide an opportunity to use the money that they receive in excess of their current state to invest in themselves. If individuals use this increase in income rationally, the result can be a long term positive, with the effect being that the wealthy paid for these people to improve themselves and the increases in productivity benefit everyone. In the case where they squander this money, we will basically return to the state we are in now, as price levels readjust and the funds make their way back to the wealthy, in which case, the wealthy provided these people with a "brief vacation". In terms of people earning twice the minimum wage, the likelihood of this producing any noticeable effect on their everyday lives is quite small. Price levels (and wage levels) will increase proportionately for them.

A final aside on healthcare, since it has been mentioned. This is really where the United States needs to be focusing. There are a number of possibilities, ranging from full privatization to full socialization, under a variety of schematics. I personally support full privatization on a national level, allowing a division of service schedules and pooled patient groups (done federally). Access to groups is federally regulated with determination being done through complex auctions (buying access to patients through auctions under bilateral arbitrage). This allows patients to select their level of care, paying for it in a manner similar to federal income tax withholding. Competition among privatized firms for patients is greatly changed under this scheme, though it promotes greater efficiency than what is present in our current system. There is also less of the typical "principal-agent" problems here, as the individuals are forced to select their levels of care.

No Cliffs. I will elaborate on any points upon request.

[John L]

Are you actually this fukn retarded bro?

I'm not even gonna bother replying anymore lol.

Alright, but I suggest you take an economics class next semester

[7thbrah]

Really, it doesn't?



Because according to this post the minimum wage "affects the entire economy". Or does it not affect the entire economy? I don't know, you'll have to explain it to me since you understand the economy so well. Looking forward to hearing a concrete answer from you that you'll stick to.

Increasing the min wage really has a negligible affect on the economy since so few people over the age of 25 earn min wage. There are arguments that it may help small business and some arguments that it hurts small businesses but what it does do is increase consumption by those small percentage of the pop over age 18 that do earn min wage. There are also downsides in that it may affect inflation by causing businesses to raise prices and it reduces qt demanded of labor

[.jon.]

some men just want to watch the world burn.

[ack33]

[oldstock]

Right. You're smarter than Obama's economic team, because you've been taking a macroeconomics course. lol

Please, no politician, Republican or Democrat, is making decisions for the good of the country. They make decisions based on what will get them more votes. Like it or not, that's the inherent flaw in democracy.

[Driftslut]

please be kidding
please be kidding

I was literally thinking the same thing...

[TheIronAsylum]

srs iv said this so many times there should be a requirement of at least a high school diploma to vote

[mommaofobama]

lmao

So destroying the wealth of people who are prudent with their money and save is a good thing? Impoverishing pensioners/elderly people whom depend on savings for their source of income is a good thing?

pls go

OMG you're so dumb it hurts. Steady inflation is a good thing. It encourages spending, investing, and basically using money, because the next year, it'll be worth like 1% less. I wonder what spending money leads to... oh yes, a better economy since it increases the flow of goods. Deflation is the opposite and is a million times worse. It means that your money increases in value over time, which means that the absolute best way to invest it is to not spend it at all. No money being spent is a terrible thing.

[nutsy54]

Right. You're smarter than Obama's economic team, because you've been taking a macroeconomics course. lol

Because "Obama's economic team" has produced such stunning results as a decreased GDP, increased unemployment, and massive new debt...?

[juiceyjay]

Because "Obama's economic team" has produced such stunning results as a decreased GDP, increased unemployment, and massive new debt...?

100,000 posts?

is this real life?

[mommaofobama]

Because "Obama's economic team" has produced such stunning results as a decreased GDP, increased unemployment, and massive new debt...?

NASA engineers created a space shuttle that exploded on takeoff. Have I ever created a space shuttle that exploded on takeoff? Nope, therefore i'm smarter than all of NASA combined.

[wrestletib]

so u dont get a cost of living raise at your work?

l o l !

[Polaris]

This shyt just makes me jealous because when I was in High School I was towards the end of that like DECADE or so long period where minimum wage hadnt increased at all ($5.15). Not that long after Im done working minimum wage jobs, the shyt suddenly jumps way up.

[winjones]

wage should match living expenses, retard. I don't like the current head of the executive branch, but still support that, you ****ing plebeian.

this... the cost of living has SKYROCKETED the past few years, they're just raising minimum wage to match it.

[miscsleepdoctor]

NASA engineers created a space shuttle that exploded on takeoff. Have I ever created a space shuttle that exploded on takeoff? Nope, therefore i'm smarter than all of NASA combined.

Not trying =/= trying and failing miserably..

Your argument is ****, and you literally used more than 3 fallacies in one argument that is less than 3 sentences..

[DrTorpedo]

--Informative post--

Get your facts out of here.

100,000 posts?

is this real life?

Trust me, if you ignore him you won't have a brain aneurysm by the end of the night.

[silvrmoos]

Because "Obama's economic team" has produced such stunning results as a decreased GDP, increased unemployment, and massive new debt...?

I hate to argue with a fellow Marine or even a Squid; but, Obama's economic team essentially had their hand forced. A quick examination of the fall of Europe shows one group to blame: The United States investment banks. Take the case of Iceland. We basically raped them. This was the most extreme example; but, we were essentially responsible for the global catastrophe. Our current economic policy shows that of taking responsibility for this and the adjustments (decreased GDP, increased unemployment and new debt) are a biproduct of this. Mistakes were made, consequences need to be paid.

It is really a similar case as to the healthcare debacle we are facing. Millions of Americans are receiving healthcare benefits valued at tens to hundreds of times more than what they have invested into the system. There is no free lunch.

[EatMarkers4lunch]

op is full retarded if he thinks that raising min. wage will do that much in this economy. I'd say less than 10% of all jobs are even min. wage

[ack33]

[gabe2gg]

Because "Obama's economic team" has produced such stunning results as a decreased GDP, increased unemployment, and massive new debt...?

a good part of our economic problems stem from dubya