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Post by hearingGod on Jan 28, 2014 9:59:08 GMT -5
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Post by buildthefarm on Jan 28, 2014 23:21:18 GMT -5
from a pure economics perspective it would do a couple of things. one drive up union wages. union contracts are usually written with an automatic pay increase if minimum wage goes up. so if MW is 7.50 and union job X starts at 18 and tops out at 26, a 1 dollar increase in minimum wage would make MW 8.50 and union job X start at 19 and top out at 27 so every employee on the scale would get the raise. this is likely the reasoning behind the president's insistence on raising the MW.
also walmart, mcdonalds and so on will have a 30-40% increase in baseline costs so they will compensate the standard ways. step one cut hours to employees and try to make it on less man hours. step 2, if necessary lay people off. step 3 raise prices to the consumer. net result economically is higher prices, and fewer people employed. buy the best mcdonalds employees will make more than they did before and the difference gets spread through the economy to create jobs. so 3 people laid off for one person making an extra 100 bucks a week. add it together and the broad economic impact is a net negative.
as for illegal immigrant workers, this will likely increase their under the table pay doing cash jobs so yay for them. it will also pay the mob quite well on their end. idk how many people know about this aspect of organized crime but often the unions that are still run by the various mobs will steal the identity of legal hispanics, and then hire illegal workers in exchange for a cut of each paycheck. so the illegal immigrant will work for the full legal wage or even the union wage, then pay dues, and taxes and insurance in the name of the other person and the mob will set it all up and take a few bucks off the top every payday. but that hasn't got much to do with MW lol just a side note. but your cash under the table illegal 'migrant worker' will probably make a higher wage. kind of like when you buy something used on craigslist it costs about half what it would new, cash work will go up and some proportion to minimum wage.
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Post by hearingGod on Jan 29, 2014 9:34:32 GMT -5
it's federal tho' so does yer examples even apply? at first i thought it was base minimum across the board & i freaked cuz that'd be disastrous, but then when i realized it was federal only, it wasn't so scary sounding. i imagine there's more microscope over federally approved contractors, not that abuses can't happen, but more accountability. wonder what kinda watchdog stuff is over this to keep things in check?
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Post by buildthefarm on Jan 29, 2014 18:35:21 GMT -5
oh oh i see what your saying. yeah the federal contractor thing was the only thing he could do without congress. its supposed to be a wedge to push congress towards passing the bill to make 10.10 the official nationwide MW. thought you meant like 'what if that passes'. which it might. but yeah as far as accountability and watchdog for federal contractors, look to the example of accountability and watchdog for the officials at the highest levels as the example. as far as the actual impact of raising contract work and gov work to MW 10.10 PH, drop in the bucket. its a few billion max, might even be in the millions. FED GOV wastes trillions already and there is no need in worrying about rearranging the deck chairs on the titanic, when it goes down none of thats gonna matter much. we are under 2 years away from next major financial catastrophe. after that 10 bucks won't buy ya a loaf of bread anyway. living wage will have to be paid out in foreign currency to be an actual living wage at the rate washington is going.
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