American Wages, the Minimum Wage and Income Brackets

True enough, the first MW as implemented by FDR in 1938. But neither was it the first; (Which was in New Zealand in 1898 and some parts of Australia in 1902.

So, you can see how laid-back America can be about the matter! Especially when a country focuses uniquely upon profit and exacts minimized Labor Costs to achieve maximization of profit!

In fact, in researching the history, I find that the last enhancement was NOT to $7.25 a hour (as is stated when looking it up on the Internet).

In fact, Obama raised it to the level mentioned above, which is WAY BELOW the level necessary for a decent standard-of-living!

That standard is closer to $15 an hour or $31,200. If you don't believe that just look up average costs of living - rent, food, etc.

PS: In fact, the average cost of living for All Units of Spending (from Housing to Apparel) in the US is closer to $58K a year. So, a MW at $15,080 is about 26% of that total ...

 

Hey whoa. Of course there are exceptions to everything, and there are also trends for many things, and this is one of those. AS A TREND if a population gets more education, they TEND to make better choices. Isn't that self-evident?

 

You do realize that business does not care what labor rates might be...because all costs of doing business are passed along to the consumer in the price of goods and services? Can you agree with this?

But the labor costs, and all other business costs, MUST allow for a viable business...right?

Therefore, there are NO conspiracies about 'profit and minimizing labor costs'. As long as a business can create something, for a price that the consumer likes, everyone is a happy camper! It is the CONSUMER who determines what business costs and profits can be.

So, why not for a test case, in the McDonald's restaurant empire, just increase all hourly labor rates to $30+/hour? When the dust settles, and the prices of their goods increase, will the consumer continue to support them? And, when everyone else finds out McDonald's workers are earning a minimum of $30/hour, will all other hourly workers demand equitable wages? And when this dust settles, and inflation is higher, and American companies can no longer compete in the world marketplace, is everyone going to be a happy-camper?

If you can be honest, then you must realize that your wage complaints need to be taken up with the consumers...not with government and not with business...the consumers control everything...

 

No, you can't generalize. Educated people have bankruptcy, divorce, crime, chemical abuse, etc. If we're talking about subjective decisions in life then I doubt education is a huge benefit. Educated people also live pay check to pay check! The more we earn the more we spend...

 

Business gets to deduct the Cost of Labor.

 

So either you're saying educated people are, on the whole, in a worse condition than less educated people, or you're just doing your best to disagree even if ignoring the given particulars is necessary.

 

According to the CEO of JPMORGAN Jamie Dimon 40% of working Americans earn less than $15 per hour and get no fringe benefits.Brian Moynihan of Bank of America just announced effective May 1,2019 the minimum wage for their employees will be $17 per hour rising to $20 per hour by May 1,2021.Each 40 hour worker will be earning minimum of slightly over $41,000 per year in 2021.

 

a fifteen dollar an hour minimum wage is merely a cost of living adjustment. and, higher paid labor pays more in taxes and creates more in demand.

 

THE WATTS RIOTS

Business who and where?

It cares in Europe, because "business" DOES NOT FUND THE ELECTION OF POLITICIANS! But you live on the US that kneels at the altar of feudal capitalism. All that matters in the US is Muney, Muney, Muney - and how much of it you got compared to how much your neighbor of friends have!

Bollocks!

In your blindness to the facts you have no comprehension whatsoever of the concentration of industry that has occured in the US. Aided and abetted by a willful intent to Consolidate Markets (in order to reduce competition) that has been allowed by successive administrations!

For your education on the question (which is wholly significant in the context of the US economy), go here: Market Concentration Is Threatening the U.S. Economy
-excerpt:

You haven't the slightest understanding of what Income Disparity means in such an economic context as redlined above. The higher cost of living in the US is uniquely due to market-concentration that has been wilfully implemented in the US over the past half century. (Without the slightest intervention of antitrust laws that have been on the books since the beginning of the 20th century!)

Wage complaints are taken up best in a Public Forum in the US with the intent of changing aging-mentalities. That is why you are on this Debate Forum.

And some people think that the Only Solution is like that implemented in the Watts Riots when blacks had enough of the disparity between "colours" and torched an entire section of Los Angeles.

Yes, that is what it comes down to finally - and by then it is way, way too late.

Can't happen again? Watch this space ...

 

I am a Employer for over 40 years . we have vested employees in our profit sharing plan after 1 year and PAID for their health insurance. 5 out of 6: employees have been with for over vover 20 years.

We want to pay employees enough for them to live comfortably.

Minimum wage should be based on the cost of living where the business ius located. The cost of housing, utilities, food, clothing and the like. It should not be determined by the Federal Government setting an amount for the entire Country, But the fed gov should require the States to set the amount in their Counties.

 

cheap States are cheap, for a market based reason.

social services have an average cost for the Union.

 

That's a fine idea. Unfortunately, the disparity amongst "average cost of living" indices is very wide.

See from this calculator here, the calculator goes from -18% in Knoxville, Tenn. to +128% in NYC. Still, the index could still be applied as you have indicated above - it's just not universal.

Nor need it be ...

 

Business gets to expense lots of things...so what? Taxable income is gross income minus expenses...which includes labor. Labor and other expenses is spending and we don't tax spending...we tax income minus expenses. Individuals have similar tax policy in which they deduct from their income a standard deduction or itemized deduction...

 

Knock-knock...I'm saying you can't GENERALIZE! Every person has varying limitations and potential and both can be effected good and bad in the moment of the day. Education IS NOT a panacea...

 

The government says the median wage is $31,099 which is about $14.95/hour for a full-time worker.
There are approximately 155 million Americans in the workforce so this implies about 76 million, or 50%, of American workers earn $14.95/hour or less.
The Bank of America employee earning $41,000 in 2021 cannot afford to live in any major metropolitan area.
The MW increase at BofA is great but does it truly solve any poverty or wealth issues?

 

Enjoy your diatribe...

 

it seems disingenuous and coincidental to "wage stagnation" for the Poor. The more Labor Costs, the more Corporations can Expense. Why is that not just compensation even with higher paid Labor in our first world economy.

 

"Panacea"?? I referred to TRENDS and TENDENCIES. There is no room for an honest discussion of "generalizations" or "panaceas" in that. So if you brought those up, you're not addressing my post. You're addressing something else that is unrelated.

 

it is irrelevant; our Constitution is in Writing and must be understood by the Electorate; federal Standards for the Union may be necessary and proper.

 

Some people MUST HAVE the last word in an exchange.

You've had yours.

Feel better now ... ?

 

No one owes you a living. You are paid the market wage and that may be 7.25 an hour. If you want more make yourself more valuable.

 

Caveman speaks his piece ...

 

Capital must circulate under Capitalism. Why not correct for capitalism's inefficiencies with sufficient socialism.

 

If you are an adult, working at minimum wage, you made some shi-ty decisions in life, and you have nobody to blame but yourself.

 

a fifteen dollar an hour minimum wage is a simple cost of living adjustment. higher paid labor pays more in taxes and creates more in demand.