Minimum Wage Would Be $21.72 If It Kept Pace With Increases In Productivity

President Obama's call to increase the federal minimum wage to $9 an hour was one of the more significant proposals he laid out in his State of the Union address Tuesday night. But $9 an hour is still a far cry from what workers really deserve, a 2012 study finds.

The minimum wage should have reached $21.72 an hour in 2012 if it kept up with increases in worker productivity, according to a March study by the Center for Economic and Policy Research. While advancements in technology have increased the amount of goods and services that can be produced in a set amount of time, wages have remained relatively flat, the study points out.

Even if the minimum wage kept up with inflation since it peaked in real value in the late 1960s, low-wage workers should be earning a minimum of $10.52 an hour, according to the study.

Between the end of World War II and the late 1960s, productivity and wages grew steadily. Since the minimum wage peaked in 1968, increases in productivity have outpaced the minimum wage growth.

The current minimum wage stands at $7.25 an hour. In 2011, more than 66 percent of Americans surveyed by the Public Religion Research Institute supported raising this figure to $10.

The last time the federal minimum wage increased was in 2009. Currently observed in 31 states, the federal minimum wage translates to an annual income of about $15,000 a year for someone working 40 hours per week.





http://www.huffingtonpost.com/2013/02/13/minimum-wage-productivity_n_2680639.html

Increasing minimum wage actually decreases spending power by pushing up inflation even harder.

Numbers and such, they're a bitch.

Workers are not suddenly more productive. They are more productive due to technology innovations and equipment advancements.

If a guy has a shovel and you give him a backhoe, his productivity goes waaaaaaay up.

You cannot just look at the graph and claim that workers are 5* more productive in a vacuum.

Harrekin said:

Increasing minimum wage actually decreases spending power by pushing up inflation even harder.

Numbers and such, they're a bitch.

Click to expand...

no it doesnt

you cannot point to any studies that show the correlation

I can tell you though that the welfare state called Ireland has a direct link between drinking and monthly welfare payments

You are on here 24/7 dont you have a job?

15 and hour. that would be awesome. id be starving a little less

ChesusRice said:

no it doesnt

you cannot point to any studies that show the correlation

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lol, as if an austrian cares if the actual numbers point to a conclusion.

it's only the theory that counts with them.

Minimum wage in Australia is $16.37 p/h if youre a casual employee than it's $20.30 p/h. That's written into federal legislation.

President Obama needs his head checked if he actually thinks people can live on $9 p/h... I was making more than that when I was 16...

ChesusRice said:

You are on here 24/7 dont you have a job?

Click to expand...

There are certain people here who post so much, that they should not say such things.

You are one of them.



So if the unskilled worker taking your order makes 20+ bucks an hour, how much is that shitty burger going to cost you? They aint getting a raise without someone absorbing the increase in wages. Every quarter I adjust costs of services based on projected increases and actually increases in things like product costs, employee wages, insurance costs, phone bill, etc.

Really, whats the angle here? They would be getting 20 bucks an hour and then turn around and find out that everything else in the country just tripled in price. Aw damn, how'd that happen?!

I guess they are just gonna have to increase their value to the world to get a real pay increase.

spandy said:

There are certain people here who post so much, that they should not say such things.

You are one of them.



So if the unskilled worker taking your order makes 20+ bucks an hour, how much is that shitty burger going to cost you? They aint getting a raise without someone absorbing the increase in wages. Every quarter I adjust costs of services based on projected increases and actually increases in things like product costs, employee wages, insurance costs, phone bill, etc.

Really, whats the angle here? They would be getting 20 bucks an hour and then turn around and find out that everything else in the country just tripled in price. Aw damn, how'd that happen?!

I guess they are just gonna have to increase their value to the world to get a real pay increase.

Click to expand...

that's simply and demonstrably false. it won't cost more for a farmer to harvest wheat in an automated fashion if minimum wage goes up.

in fact, minimum wage went up several times from 2000-2010. see graph:



yet during that same time, the inflation adjusted cost of a big mac went down. see chart:




there goes that theory of yours. demonstrably false.

How is that guy who worked his ass off for 20 years to make $21.72 going to feel if everyone made $21.72? Will you pay him $65.07?

Canna Sylvan said:

How is that guy who worked his ass off for 20 years to make $21.72 going to feel if everyone made $21.72? Will you pay him $65.07?

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You know he is spouting bullshit don't you? Nothing about trade deficit, illegal immigration, housing bubble, federal assistance, increased taxes for the employer, etc. Over half that shit in the chart is probably imported.

nontheist said:

You know he is spouting bullshit don't you? Nothing about trade deficit, illegal immigration, housing bubble, federal assistance, increased taxes for the employer, etc. Over half that shit in the chart is probably imported.

Click to expand...

had no idea they imported domestic airfare.

or walmart stocks.

or mortgages.

or harley fucking davidsons.

you have the intelligence of a mentally challenged baboon, nonthinkist. you fucking dumbass.

Harrekin said:

Increasing minimum wage actually decreases spending power by pushing up inflation even harder.

Numbers and such, they're a bitch.

Click to expand...

How does increasing minimum wage push up inflation? Honest question

NLXSK1 said:

Workers are not suddenly more productive. They are more productive due to technology innovations and equipment advancements.

If a guy has a shovel and you give him a backhoe, his productivity goes waaaaaaay up.

You cannot just look at the graph and claim that workers are 5* more productive in a vacuum.

Click to expand...

But a corporation wouldn't work without its employees, so they are a valued asset of a company just by being there, even if they're not actively increasing it's production. The business profits, the employees should profit too, not just the CEO. That seems much more fair than all the profits gained through using the employees going to the boss. Much like without him, they wouldn't have a job, without them, he wouldn't have a company.

echelon1k1 said:

Minimum wage in Australia is $16.37 p/h if youre a casual employee than it's $20.30 p/h. That's written into federal legislation.

President Obama needs his head checked if he actually thinks people can live on $9 p/h... I was making more than that when I was 16...

Click to expand...

lol, try $8.50 in California. It's a joke. It would require me to work 74 hours/week to afford to live where I live on my own at that wage

spandy said:

So if the unskilled worker taking your order makes 20+ bucks an hour, how much is that shitty burger going to cost you? They aint getting a raise without someone absorbing the increase in wages.

Click to expand...

If there are any increases, they should be absorbed by the individual or group of individuals whose net profits have increased 273% since 1964 while the middle class' increases have remained stagnant at 6%

spandy said:

Really, whats the angle here? They would be getting 20 bucks an hour and then turn around and find out that everything else in the country just tripled in price. Aw damn, how'd that happen?!

Click to expand...

Why would prices increase if minimum wage did?

Padawanbater2 said:

How does increasing minimum wage push up inflation? Honest question



But a corporation wouldn't work without its employees, so they are a valued asset of a company just by being there, even if they're not actively increasing it's production. The business profits, the employees should profit too, not just the CEO. That seems much more fair than all the profits gained through using the employees going to the boss. Much like without him, they wouldn't have a job, without them, he wouldn't have a company.



lol, try $8.50 in California. It's a joke. It would require me to work 74 hours/week to afford to live where I live on my own at that wage



If there are any increases, they should be absorbed by the individual or group of individuals whose net profits have increased 273% since 1964 while the middle class' increases have remained stagnant at 6%



Why would prices increase if minimum wage did?

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Pada, I wish you were 10 or 20 years older and wouldn't flood the forum with your teenage type questions.

Maybe study economics and history a bit?

I think you'll find, if you did a little research, that the excess money of a company has been increasingly going into the pockets of those who run it. Im not saying this is right or wrong, reasonable minds can disagree on this. What I think is wrong is not really paying people any more now then they were paid 20 years ago, while the business elite are making so much more. Im not sure when it will be time to storm the Bastille, but the time is approaching.

Nutes and Nugs said:

Pada, I wish you were 10 or 20 years older and wouldn't flood the forum with your teenage type questions.

Maybe study economics and history a bit?

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hey pada, that response from resident pea brain nutes&nugs is his way of saying that he has no answers to your questions.

UncleBuck said:

had no idea they imported domestic airfare.

or walmart stocks.

or mortgages.

or harley fucking davidsons.

you have the intelligence of a mentally challenged baboon, nonthinkist. you fucking dumbass.

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I said over half dumbfucky, airlines are a fucking joke anymore on the news daily for how shitty they have become, bankruptcies, internal issues, etc. Harley Davision does import parts dumbshit, but thanks for showing your ignorance.

BigNBushy said:

I think you'll find, if you did a little research, that the excess money of a company has been increasingly going into the pockets of those who run it. Im not saying this is right or wrong, reasonable minds can disagree on this. What I think is wrong is not really paying people any more now then they were paid 20 years ago, while the business elite are making so much more. Im not sure when it will be time to storm the Bastille, but the time is approaching.

Click to expand...

We get paid for what we are worth.
Some ceo's do stumble into the job but not many.

I've seen kids bloody their fingers with a philips screwdriver or 25 year olds who have no idea how to change a car tire.
I'll be damned if we should pay these stupid fucks more for doing simplistic motions.
Use your head and Earn more money.

Even in big business, the dumb guy is gonna lose.

Padawanbater2 said:

How does increasing minimum wage push up inflation? Honest question



But a corporation wouldn't work without its employees, so they are a valued asset of a company just by being there, even if they're not actively increasing it's production. The business profits, the employees should profit too, not just the CEO. That seems much more fair than all the profits gained through using the employees going to the boss. Much like without him, they wouldn't have a job, without them, he wouldn't have a company.



lol, try $8.50 in California. It's a joke. It would require me to work 74 hours/week to afford to live where I live on my own at that wage



If there are any increases, they should be absorbed by the individual or group of individuals whose net profits have increased 273% since 1964 while the middle class' increases have remained stagnant at 6%



Why would prices increase if minimum wage did?

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Pada you may find it strange but increasing what you pay employees also increases your tax, insurance, and a whole range of other things an an employer and business owner. You may also find it strange that people with degrees won't want to make minimum wage and ask for an appropriate increase themselves and that's how the story goes. Everything gets higher and nothing really changes.

nontheist said:

I said over half dumbfucky, airlines are a fucking joke anymore on the news daily for how shitty they have become, bankruptcies, internal issues, etc. Harley Davision does import parts dumbshit, but thanks for showing your ignorance.

Click to expand...

harley davidson does not import the grand majority of their parts and they are assembled right here in the US of A.

besides domestic airfare, harleys, mortgages, and walmart stock, what else is not imported?

levi's 505 jeans are made in the USA.*http://reviews.us.levi.com/1341/10952143/reviews.htm

red delicious apples? let me check with my neighbor to the north, washington state. yep, they're still in the USA.

mcdonald's big macs? several components there, the most important and expensive being the beef. a simple drive up the I-5 adjacent to bakersfield will show you that yes, that beef is all made right here in the USA.

was just in hawaii, could have sworn i saw bananas growing there as well as quarantine zones.

that's 8 out of 12, all made in the USA.

more failure from the resident halfwit.