My next post of answers to another minimum wage article.
Article 4 ,Quote 1-"Right now, machines and computers are capable of doing a heck of a lot that low-skilled humans can, such as driving trucks and manning checkouts. The reason that they don’t isn’t due to some fancy-pants robot-workers’ union, but because they simply cost too much. It’s way more cost-effective for an employer to keep you working at the checkout for $7.50 an hour than it is for them to buy a machine to do your job, so they don’t."
This is, at best a half truth. Machines and computers can do some tasks, but are a long way from doing a whole job. Anyone who has used a self checkout has likely had a problem doing so, maybe quite often. And robot truck drivers won't have any effect as they are well beyond even twice the minimum pay level. Also the cost of automation is not going down by much any time soon.
Article 4, Quote 2-" the vast majority of American poor either already make $15 but don’t get enough hours, or simply don’t work at all. A mass-applied $15 minimum wouldn’t affect this cohort one bit."
If the vast majority of poor already make $15 an hour, then they would not be poor. And just about all working poor that make less then $15 an hour work a forty hour week.
Article 4, Quote 3-"Around a third of minimum wage employees are working at businesses that employ fewer than 50 people. Force a $15 minimum on these places, and they’re gonna go under or lay off staff or (more likely) both."
This is often repeated that some businesses will lay off workers or even close if they pay thier workers even close to a living wage. Note that no one seems to care about the workers not making enough money to live, but everyone worries about the businesses. I have no doubt many mismanaged bossiness or greed businesses will close, but it's not like all of them will nationwide.
Article 4, Quote 4-"In a world where the $15 is everywhere, plenty of companies are gonna avail themselves of freelance contracts."
Well, even if companies do, the company they hire will still need to pay their employees the $15 minimum wage. And few companies will find contract work cheaper then just paying their own employees a living wage.
Many people with low paying jobs, especially young adults that have a child . Cant afford the basic needs. If a young mother has a low paying job, often her wages barely even coved childcare. Some weeks it may not even cover that if she didnt get enough hours. This is just one expense. Not including rent, food, utilities... So what happens is she quits her job and collects Welfare.
Businesses' ability to pay depends on the market, and the minimum wage changes the market so that all competitors are in the same boat. Prices will rise, demand will drop, and who knows what that will do to ability to pay. As long as all employers have to play by the same wage rules, there should be less impact on employment and more impact on prices, but that's as it should be; consumers should ultimately pay for the cost of production, including wages.
No comments:
Post a Comment